Canada’s Tourmaline Oil aims to increase production with Jupiter, buys Modern Resources

Nov. 4 (Reuters) – Canadian oil and gas producer Tourmaline Oil Corp said on Wednesday it had acquired Jupiter Resources Ltd in a deal valued at approximately C $ 626 million (C $ 476.63 million). dollars), including debt.

Tourmaline also said it bought Modern Resources Inc for C $ 144 million in a cash and stock deal on Nov. 2, and hopes the two deals will bring its average annual production next year to around 400,000. barrels of oil equivalent per day, an increase of 25%. of an earlier forecast.

The deals come close to Cenovus Energy’s recent C $ 3.8 billion acquisition of rival Husky Energy Inc to create Canada’s third-largest oil and gas producer, as a collapse in demand caused by a pandemic grows companies to come together to grow in an environment of lower oil prices. .

Tourmaline said that for every common share, Jupiter shareholders will receive approximately 0.2365 common share of Tourmaline. For Modern’s deal, the company offered C $ 73.75 million in cash and 1.5 million common shares.

Calgary-based Jupiter is focused on developing liquid-rich unconventional natural gas properties in the Western Canadian Sedimentary Basin and its assets, located in the Alberta Deep Basin, are adjacent to Modern’s assets. .

The Jupiter Resources deal is expected to close by the end of 2020. ($ 1 = C $ 1.3134) (Report by Shradha Singh in Bengaluru; edited by Uttaresh.V)

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