Tourmaline Oil Corp., Calgary, has completed a deal to acquire liquids-rich natural gas company Crew Energy Inc., Calgary, for total consideration of about $1.4 billion (Can.) including net debt of about $230 million.
The deal adds to Tourmaline's South Montney asset base and includes existing low-decline average base production of 28,000-30,000 boe/d, externally and independently evaluated proved and probable (2P) reserves of 473.2 MMboe, and drilling inventory including over 700 Tier 1 locations, including 246 net Montney sites, the company said in an early October release.
The Crew assets are immediately adjacent to Tourmaline's existing South Montney operated complex. Crew's Groundbirch development project, including the planned and permitted 15-25 electrified deep cut gas processing plant, could more than double the existing Crew production base, Tourmaline said. Tourmaline intends to proceed with the Groundbirch dry gas project within the next 5 years, with specific timing to be determined over the next year.
Topaz transaction
Tourmaline entered into an agreement to sell a gross overriding royalty (GORR) interest to Topaz Energy Corp. on the recently acquired Crew lands, the Bonavista Energy lands acquired in 2023, and new Deep Basin, Peace River High, and NEBC Montney lands acquired by Tourmaline over the past 2 years, for $278.2 million (Can.).
Consistent with Tourmaline's existing GORR agreements with Topaz, Topaz will receive a GORR of 3% on natural gas and 2.5% on crude oil and condensate.
