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Calgary’s Tourmaline Oil buys Huron Energy for $258m

by on October 23, 2012 2:14 pm BST
 

Calgary-based,
Toronto-listed Tourmaline Oil said that the deal would give it 5500
barrels of oil equivalent per day in extra output as well as a significant new
asset base in the liquid-rich Montney play of north east British Columbia.

The buy hikes Tourmaline Oil’s Montney portfolio to 186
sections from 78 sections, primarily in the Groundbirch, Sunrise and Tupper
areas, adding many new horizontal drill opportunities, according to the
explorer.

The Huron Energy assets also hold 46.2 million boe in proven
and probable reserves according to an independent evaluation.

Tourmaline said it would issue a total of around 7.4 million
common shares to buy Huron Energy, with Huron shareholders receiving 0.07644 of
a Tourmaline share for each of their Huron stock.

The acquisition is expected to close in early December 2012,
with directors of Huron and certain other shareholders having already voted
their stock – representing 65% of the company’s shares – to the deal.

Established in 2008 by Calgary oilman Mike Rose, Tourmaline Oil raised C$227 million in an initial public offering in late 2010.