Tourmaline Oil Corp. (TSX:TOU) announced that it paid approximately $258 million to acquire privately-owned oil and gas producer Huron Energy Corp. in an all-share transaction.
As quoted in the press release:
The acquisition provides a significant expansion to Tourmaline’s asset base in the prolific liquid rich Montney play area in NEBC. The Company’s land base in NEBC will more than double to 186 sections from 78 sections and result in a significant increase in Tourmaline’s future horizontal Montney drilling inventory.
Valued at approximately $258 million, the acquisition will also add approximately 5,500 BOE/d of current production, primarily in the Groundbirch, Sunrise and Tupper areas, and 46.2 mmboe of 2P reserves (as independently evaluated in a report by GLJ Petroleum Consultants Ltd. as at August 31, 2012). Huron’s extensive infrastructure in NEBC is very complementary to Tourmaline’s plant and pipeline network in the greater Sunrise-Dawson area, which Tourmaline believes to be the optimum Montney play area in the entire NEBC Montney trend.