Canadian Energy Firms Boosted By Oil Sands Tour By Gates And Buffet

August 21, 2008 9:37 a.m. EST

Toronto, Ontario (AHN) - The Toronto stock exchange rose almost 300 points Wednesday on a report that billionaires Warren Buffet and Bill Gates took a helicopter tour of Alberta's oil sands Monday.

As a result, Toronto's composite index rose more than two percent, advancing 286.29 points to 13,350.14. Meanwhile, Canadian energy firm stocks surged over the news of apparent interest in the oil sands by the two cash-rich potential investors. Shares of Canadian Natural rose 7.5 percent while stocks of Suncor Energy went up 6.4 percent on Tuesday.

Buffett is the chief executive officer of Berkshire Hathaway, a holdings company. Gates is the founder of software giant Microsoft. The two flew over Canadian Natural's $9.3 billion Horizon development aboard the chopper and then took a look at the other oil sand sites in northern Alberta.

The contractor of the Horizon project, Walter Scott Jr., is a high school classmate and old-time business partner of Buffett. Scott is director and former chief executive officer of Kiewit Corporation, the engineering firm running the Horizon project.

According to Greg Stringham, executive vice president of the Canadian Association of Petroleum Producers, the two billionaires were given an informal presentation on the issues involving the oil sands project of Horizon.