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Tourmaline closes deal to acquire Shell’s Montney assets

A natural gas drilling rig and canola fields in Northeast B.C. File photo
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CALGARY, A.B. – Tourmaline Oil Corp. announced today that it has closed the previously deal to acquire Shell Canada assets.

Tourmaline acquired Shell assets in the Alberta Deep Basin and the Gundy area in the Montney Basin for a total of $1.369 billion. The cash portion of the purchase was funded through equity financings for gross proceeds of $756.1 million, which closed on November 10th. With the acquisition, Tourmaline has acquired current production of approximately 24,850 barrels of oil equivalent per day, and an evaluated future drilling inventory of 2,147 locations between the Deep Basin Assets and Montney Assets.

The Montney Assets consist of a large, contiguous land block in an area with liquid content ranging from 10-80 bbls/mmcf. Acquired production is approximately 6,200 boepd from 25 existing horizontal wells. Tourmaline plans to drill 13 horizontals on the Montney Assets in 2017 and 54 horizontals in 2018.

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