Tourmaline buys Black Swan Energy, sets sights on Canadian LNG

Canada’s Tourmaline Oil has revealed plans to supply Canadian LNG export terminals after it made a move to buy compatriot Black Swan Energy for C$1.1 billion ($904 million).

The deal consists of $26 million Tourmaline common shares and the assumption of net debtup to a maximum of C$350 million, including all transaction costs, the Calgary-based oil and natural gas firm said.

Moreover, Tourmaline said the acquisition represents a “further important component” of the company’s ongoing North Montney consolidation strategy.

“Tourmaline envisions the North Montney as the key sub-basin for supplying Canadian
LNG, as the company expects the North Montney to be the primary growth driver in the entire Western Canadian Sedimentary Basin for the next decade,” it said.

The Black Swan acquisition complements Tourmaline’s core Gundy development.

Coupled with the more recent Polar Star, Chinook, and Saguaro transactions, the move would establish Tourmaline as the largest current North Montney producer with the most extensive future drilling and project inventory, the firm said.

In addition, Tourmaline now expects to average approximately 500,000 boepd of production by mid-2022.

The firm plans to finalize the transaction in the second half of July 2021, subject to regulatory approvals.

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