Tourmaline signs second company acquisition for Alberta Deep basin assets
Tourmaline Oil Corp., Calgary, has agreed to acquire Jupiter Resources Ltd., Calgary, in an all-stock transaction valued at $626 million, inclusive of debt.
The Jupiter assets, in the Alberta Deep basin, include current average production of 67,000 boe/d, estimated 2P reserves of 357 MMboe, over 500 net sections of land (average working interest 84%), and working interests in gas plants in the Resthaven and Kakwa areas. The assets are adjacent to those gained through the company’s acquisition of Modern Resources Inc., effective Nov. 2. In that deal, Tourmaline paid $144 million and assumed current net debt of $44 million.
Production from the combined Modern-Jupiter assets is expected to increase to over 85,000 boe/d from the current 76,000 boe/d over the next 2 years, the company said. The acquisitions are expected to boost fullyear-2021 average annual production to 400,000 boe/d, an increase of 25% from prior 2021 guidance of 320,000 boe/d. Average production for Tourmaline in this year’s third quarter was 298,202 boe/d.
Jupiter's four largest shareholders have entered into agreements in support of the deal representing, in aggregate, 92% of Jupiter's outstanding common shares. The boards have approved the transaction, which is subject to various closing conditions in addition to shareholder approval, including regulatory and court approvals. It is expected to close by yearend.