Canadian gas explorer Valeura sees funding in London above Toronto

The chief executive of gas explorer Valeura Energy today said his company wants to come to London as the capital’s investors are the best for raising funds for its Turkey operations.

The CA$256m-market cap (£147m) firm announced it is aiming to list in London next week, after trialling the idea in the past.

It raised capital around a year ago, mostly out of the UK, so is not looking to tap the markets this time, but is open to future fundraising, CEO Sean Guest said.

“London has always been a good place for international oil and gas. But in the past Toronto has also been very good for raising capital for international oil and gas and mining. But Toronto markets have really dried up and there isn’t that support anymore for oil and gas, and especially not for international,” he told City A.M.

The space in Canada has been largely hit by the rise of cannabis and the focus of investors on that new market.

“You sense a shifting away because, especially in Canada, the oil and gas industry has been very hard hit. That has really, I think, taken some of the capital away,” he said.

He continued: “London understands the European gas story. And that will be where we will focus.”

Having a investor base geographically closer to its operations in Turkey will also help Valeura, he added.

“While Turkey is not in the European Union it has very strong trading ties with Europe and it has an important relationship with Europe,” he said, adding that Brexit is not a concern.