Tourmaline Oil Corp. said Feb. 2 it has acquired assets in the Minehead-Edson-Ansell area of the Alberta Deep Basin for about C$183 million (US$130.4 million).
Tourmaline also acquired the associated gathering system. The seller wasn't disclosed.
The assets are immediately adjacent to one of the Calgary, Alberta company's largest-producing complexes. They are also within one of the large Cretaceous Wilrich 'sweet spots' that the company has identified through the 2014-15 drilling programs in the Deep Basin, according to the release.
Current production is ranging between 4,500 and 5,000 barrels of oil equivalent per day (boe/d).The assets also have multiple additional development opportunities in the Notikewin and Falher C formations.
Tourmaline plans to grow this production to 7,500 boe/d in the second half of 2016 with significant further anticipated growth in 2017.
Fully developed, the acquired assets are anticipated to add an estimated 66 Mboe to the company's 2P reserves over the next two years, the release said.
To accommodate the acquisition, Tourmaline will reduce the current C$1.1 billion 2016 capital program by C$175 million to C$925 million. Cash flow for 2016 from the acquisition is estimated at between C$30- and C$35 million.
Recommended Reading
Talos Energy Expands Leadership Team After $1.29B QuarterNorth Deal
2024-04-25 - Talos Energy President and CEO Tim Duncan said the company has expanded its leadership team as the company integrates its QuarterNorth Energy acquisition.
Energy Transfer Ups Quarterly Cash Distribution
2024-04-25 - Energy Transfer will increase its dividend by about 3%.
ProPetro Ups Share Repurchases by $100MM
2024-04-25 - ProPetro Holding Corp. is increasing its share repurchase program to a total of $200 million of common shares.
Baker Hughes Hikes Quarterly Dividend
2024-04-25 - Baker Hughes Co. increased its quarterly dividend by 11% year-over-year.
Weatherford M&A Efforts Focused on Integration, Not Scale
2024-04-25 - Services company Weatherford International executives are focused on making deals that, regardless of size or scale, can be integrated into the business, President and CEO Girish Saligram said.