George Soros's Quantum Partners is investing $65.3 million in a private placement of common stock of BNK Petroleum to fund the oil and natural gas producer's shale gas concessions in Germany and Poland.

The Camarillo, Calif.-based company is issuing 26 million shares at a price of $2.51 each, reflecting a premium based on the price of $2.49 where BNK stock closed yesterday.

After perfecting drilling for shale gas in North America, BNK Petroleum and other companies have turned to untapped deposits in Europe as the next growth opportunity.

They also have been tapping the PIPE market for access to growth capital. Chesapeake Energy Corp., for example, raised $1.5 billion in a preferred stock PIPE in May.

After the placement, Quantum will have a 19.5% stake in BNK Petroleum. The placement is expected to be completed by next Monday.

This is Quantum's third PIPE this year and second in an oil and gas company. In May, Quantum invested $28 million in Petromanus Energy. In total, Quantum has invested at least $141.5 million in 14 PIPEs since 2001.

Oil and gas producers have raised at least $4.42 billion in 66 PIPEs this year.

BNK Petroleum, which trades on the Toronto Stock Exchange, also has oil and gas properties in Texas, Oklahoma, Mississippi, Alabama and New York. The company posted a loss of C$581,000 (U.S. $563,094) in the first six months of 2010, compared with a loss of C$6.7 million a year earlier. BNK had a deficit of C$20.5 million as of the end of June of this year.

The company said it will pay a fee of 3% of the gross proceeds to Macquarie Capital Markets Canada Ltd., who acted as financial adviser and to GMP Securities, TD Securities, Paradigm Capital and others who acted as strategic advisers.