UPDATE 1-George Soros fund to invest C$66 mln in BNK Petroleum

Tue Oct 19, 2010 4:10pm BST

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* BNK Petroleum to place shrs with Quantum Partners

* To sell 26 mln shares at C$2.54 apiece

* Shares up about 8 pct

Oct 19 (Reuters) - BNK Petroleum Inc (BKX.TO) will raise C$66 million by selling shares to a fund managed by billionaire George Soros to develop its shale gas assets in Europe, sending shares of the junior gas explorer up 8 percent Tuesday morning.

BNK Petroleum said it will place 26 million shares at C$2.54 apiece with Quantum Partners LP, a private investment fund managed by Soros Fund Management LLC.

The deal, which will give Quantum Partners a 19.5 percent stake in the company, is at 4 percent premium to BNK stock's Monday close of C$2.45.

Shares of the Camarillo, California-based company, which have gained about 51 percent in last six months, were up 21 Canadian cents at C$2.66 in the morning session on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Don Sebastian)