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Tourmaline Oil to acquire Perpetual Energy’s interests in Alberta Deep Basin

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Tourmaline Oil (TSE:TO), an oil and gas producer focused on Western Canada, has agreed to acquire Perpetual Energy’s (TSE:PMT) interests in the West Edson area of the Alberta Deep Basin.

The interests include Perpetual's land interests, production, reserves and facilities that are currently joint with Tourmaline.

Tourmaline will issue 6.75 million shares to acquire the assets, the Calgary, Alberta-based company said in a statement late yesterday, valued at about $256.5 million based on yesterday's closing price of Tourmaline on the Toronto Stock Exchange.

The assets are currently producing 5,750 boepd net to Perpetual.

The deal is expected to close on or around April 1.

The Edson area features some of the highest-deliverability and lowest-cost Wilrich targets in the Deep Basin.

Where possible, Tourmaline said it plans further consolidation of identified, premium-quality assets throughout its three core operating areas.

Tourmaline also said that consolidation of the existing joint gas plant at Edson will provide it with 100 percent interest and operatorship of three gas plants with a combined processing capacity of 250 million cubic feet per day by the fourth quarter in the Greater Banshee-Minehead-Edson area.

These three plants will connect to two different sales transportation systems via three separate meter stations providing the company with significant operational and marketing flexibility.

Shares of Tourmaline closed up 1.2 percent at C$38.00 yesterday, paring losses over the past six months to 25 percent.

Quick facts: Tourmaline Oil Corp

Price: 18.08 CAD

TSX:TOU
Market: TSX
Market Cap: $4.92 billion
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