New Acquisition 07:57 AM EDT, 06/11/2021 (MT Newswires) -- Tourmaline Oil Corp. (TOU.TO) said Friday that it entered into a definitive agreement to acquire privately owned Black Swan Energy Ltd. in a $1.1 billion deal, with closing expected in the second half of July.
Consideration comprises 26 million shares and the assumption of debt up to a maximum of $350 million.
Tourmaline said the planned acquisition is part of its efforts to consolidate assets in North Montney, which it considers a key sub-basin for supplying Canadian LNG.
In connection to the deal, Tourmaline's board approved an increase of 1 cent per share in the quarterly dividend, effective in the third quarter.
Three top Black Swan shareholders as well as its directors and officers, who represent over 98.5% of the target's shares, agreed to support the transaction.
Tourmaline is acquiring expected average production of over 50,000 boepd at close, increasing to 60,000 boepd in the first half of 2022. Following the acquisition, Tourmaline expects to average 500,000 boepd of production by mid-2022.
The Black Swan takeover is expected to boost Tourmaline's North Montney production to about 175,000 boepd in 2022, inclusive of the Gundy phase-two expansion that will start production in January 2022.
Tourmaline's planned North Conroy expansion is also expected to lift the company's North Montney production by an additional 100,000 boepd after 2025.