Tourmaline bulks up Montney asset base

Tourmaline Oil Corp. has announced three transactions that significantly increases its acreage position in the northeast B.C. Montney fairway, the Daily Oil Bulletin reports.

The company had said last month that it planned to become bigger through mergers and acquisitions that would give it a bigger piece of the gas supply over the next couple of years.

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First up, the company is buying Chinook Energy Inc. in an all stock deal valued at $24.4 million, including assumed debt. The Chinook northeast British Columbia assets include approximately 3,500 boe/d of production, 35.6 million boe of 2P reserves, 54,000 acres of Montney lands, a gas plant, a compressor station, and a 190 mmcf/d regional 12-inch pipeline.

In a separate transaction, on Feb. 4 Tourmaline acquired privately-held Polar Star Canadian Oil and Gas Inc. for total cash consideration of $9 million, plus working capital adjustments. The acquired B.C. assets include approximately 2,500 boe/d of production, 2P reserves of 80.7 million boe, 106,000 net acres of Montney lands, and a compressor station.

Minimal development of the assets is expected in the next two years while Tourmaline assembles a regional facility plan as a key aspect of the future development of these assets, including a Gundy scale deep-cut facility (200 mmcf/d, 15,000 bbl/d condensate and NGLs).

In yet another deal, Tourmaline acquired a 75% working interest in a 13 section block of acreage adjacent to the company's Gundy complex for $49 million in Q4 2019. The lands offset the company's highest deliverability, most liquid-rich lands at South Gundy.

Read the full story at the Daily Oil Bulletin.

Email Managing Editor Matt Preprost at editor@ahnfsj.ca.

© Copyright Alaska Highway News

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