Calgary-based Tourmaline Oil Corp. announced today that it is acquiring Black Swan Energy in an all-stock deal valued at CAD $1.1 billion.
The transaction is set to boost Tourmaline’s output by 50,000 BOE/D and the company expects to average around 500,000 BOE/D by mid-2022. The operator said the Black Swan acquisition is one of several it has made recently to become the largest producer in the north Montney Shale area of British Columbia.
Black Swan’s 231,000-acre position gives Tourmaline an estimated 1,600 horizontal drilling locations and proven and probable reserves of 491.9 million BOE. Tourmaline said in its announcement that Black Swan has not booked material reserves in other areas that it sees as having high potential and complementary to its existing footprint.
Gas processing and transportation infrastructure are part of the deal, giving Tourmaline a 50% working interest in two recently commissioned gas plants in Aitken Creek that have a combined capacity of 265 MMcf/D and an expansion potential of up to 360 MMcf/D.
On a pro forma basis, Tourmaline expects its production profile to consist of 2.25–2.3 Bcf/D of gas and a total liquids production of 115,000 B/D (oil, condensate, and natural gas liquids). The deal is expected to close next month and involves 26 million shares of Tourmaline stock and the assumption of up to $350 million of Black Swan’s debt.
