Tourmaline to Acquire Chinook and Polar Star, Sell Topaz Energy Stake

Updated 1 year 7 months ago

Chinook Energy initiated a strategic review in November 2019 with consideration for a sale of the company. In February 2020, Tourmaline Oil agreed to acquired Chinook for CAD 0.0675 per share totaling CAD 24.4 million including assumed debt. This transaction is expected to close in April 2020. Chinook's NEBC assets include 3,500 boe/d of production, 35.6 MMboe of 2P reserves, 54,000 acres of Montney lands, a gas plant, compressor station, and a 190 MMcf/d 12-inch regional pipeline.

In conjunction with the Chinook acquisition, Tourmaline acquired Polar Star Canadian Oil & Gas for CAD 9.0 million in cash including 2,500 boe/d of production, 80.7 MMboe of 2P reserves, 106,000 acres of Montney lands, and a compressor station. The Chinook transaction closed in 2Q 2020 for CAD 24.5 million.

In order to fund the acquisition, Tourmaline plans to sell its 74% equity stake in Topaz Energy which was created in October 2019 to hold Tourmaline's royalty interests and non-operated interests in 19 gas processing plants.