Tourmaline Oil Corp. has entered into a transaction to acquire Perpetual Energy Inc.'s (Perpetual) interests in the West Edson area of the Alberta Deep Basin. The interests include Perpetual's land interests, production, reserves and facilities that are currently joint with Tourmaline.
Tourmaline will issue 6.75 million shares to acquire the assets, currently producing 5,750 boepd net to Perpetual. Closing is expected to occur on or around April 1, 2015 and is subject to customary closing conditions, including receipt of approval under the Competition Act.
The Edson area features some of the highest-deliverability and lowest-cost Wilrich targets in the Deep Basin. Where possible, Tourmaline plans further consolidation of identified, premium-quality assets throughout its three core operating areas.
Consolidation of the existing joint gas plant at Edson will provide Tourmaline with 100% interest and operatorship of three gas plants with a combined processing capacity of 250 mmcfpd by Q4 2015 in the Greater Banshee-Minehead-Edson area. These three plants will connect to two different sales transportation systems via three separate meter stations providing the Company with significant operational and marketing flexibility.