Calgary-based Tourmaline Oil Corp., the largest natural gas producer in Western Canada, has struck a deal to buy crosstown explorer Crew Energy Inc. to build its gas-heavy reserves In the Montney Shale.
Tourmaline, which reports in Canadian dollars (C$1.00/73 cents), agreed to acquire all of the exploration and production (E&P) company’s common shares and debt in a transaction estimated at $1.3 billion. The takeover is expected to be completed in October.
The acquisition is an “important component” to consolidate northeastern British Columbia (NEBC) acreage, where the Montney is the primary natural gas producer, Tourmaline noted. The purchase would put the E&P on track to produce 750,000 boe/d “over the next five years, with further growth opportunities extending into the next decade. The company plans to sequence the timing of major capital projects, and associated volume growth, with improving commodity markets…”
