Banff Oil, Ltd.
List of Deals
Banff Oil was incorporated in 1951 for the purpose of the exploration and production of petroleum, natural gas, and associated substances in Alberta and Saskatchewan.
By the end of the 1950s, oil production increased to the point that the company was able to report earnings of $70,000 for the year 1959 after experiencing a loss of $474,552 in 1958.
Aquitaine of Canada purchased 1,430,000 shares of Banff in 1961 through a tender offer of $2.50 per share. This represented about 40 percent of Banff Oil's outstanding common stock. Aquitaine was a subsidiary of Societe Nationale des Petroles D'Aquitaine of Paris.
During the early 1960s Banff's earnings were disappointing. In 1961 the company lost $221,299 and in 1962 and 1963 the net income was $40,624 and $3,464.
Over the period of 1964 to 1965, Banff served as the operator for a three-company group that discovered a major oil field in the Rainbow Lake area of northwestern Alberta. Mobil Oil Corporation, through its subsidiary, Mobil Oil Canada Ltd., held a 50 percent interest in the group while Aquitaine held 45 percent and Banff owned 5 percent. This area soon became one of the principal producing areas in Canada.
In 1966 Banff made a major sulphur-bearing gas discovery at its exploratory well in west-central Alberta. As with the Rainbow Lake operation, Banff served as the operator with a 15 percent interest, and the remaining ownership was held by Pacific Petroleum, Amoco Canada Petroleum Company, Un-Tex Petroleum Corporation, and Aquitaine Canada.
In 1968 the company, again working with Aquitaine, discovered substantial sour gas reserves in the Strachan area in southwestern Alberta.
By 1968 the success that Banff achieved with Rainbow Lake and other projects was reflected in its operating performance. The net income was $1.1 million in 1968. During that year natural gas sales rose to 3.2 billion cubit feet from 2.46 billion the previous year and crude oil sales were approximately 600,000 barrels versus 528,705 in 1967.