Topaz Energy’s deal to acquire royalty interests from Tourmaline Oil spans across approximately 3 million acres in Western Canada, with over half of the acquired land undeveloped. (Source: Shutterstock)
Calgary, Alberta-based Topaz Energy Corp. completed an acquisition of royalty interests from Tourmaline Oil Corp., boosting its footprint across Western Canada, according to a Nov. 4 press release announcing its third-quarter financial results.
The deal, valued at CA$278.2 million (US$200.92 million), includes gross overriding royalty interests on approximately 3 million acres, with over half of the acquired land undeveloped.
The deal spans across Topaz's core royalty areas, including the Northeast British Columbia Montney, Alberta Deep Basin and Peace River High regions.
The acquisition marks a 50% increase in Topaz's overall royalty acreage, including a 38% expansion in its “premium” Montney rights acreage, Topaz said.
Topaz said it expects the deal to immediately boost its royalty production by 12% and aligns the company with all of Tourmaline's future growth projects.
Following the acquisition, Topaz expects 29 rigs to 31 rigs to be active across the company’s royalty acreage throughout the fourth quarter, including both dedicated rigs and estimated variable activity from other operators.
Additionally, Tourmaline-operated rigs on Topaz's royalty acreage have increased from 13 rigs to 16 rigs during third-quarter 2024, driven by Topaz’s acreage expansion under the deal.
On Oct. 22, Topaz completed a previously announced bought-deal equity financing, which raised CA$201.7 million (US$145.67 million). The company issued 8.05 million common shares at $25.05 per share, which included shares issued upon the full exercise of the over-allotment option granted to underwriters.
In addition to this public offering, Topaz conducted a private placement, selling 209,177 common shares at the same price of $25.05 per share.
The combined gross proceeds from the financing and private placement totaled approximately CA$206.9 million (US$149.42 million), which Topaz used to fund the Tourmaline royalty acquisition.
RELATED
Tourmaline’s $950MM Crew Energy M&A Drills Deeper In Montney
Recommended Reading
EY: How AI Can Transform Subsurface Operations
2024-10-10 - The inherent complexity of subsurface data and the need to make swift decisions demands a tailored approach.
E&P Highlights: Oct. 7, 2024
2024-10-07 - Here’s a roundup of the latest E&P headlines, including a major announcement from BP and large contracts in the Middle East.
Kolibri Global Drills First Three SCOOP Wells in Tishomingo Field
2024-09-18 - Kolibri Global Energy reported drilling the three wells in an average 14 days, beating its estimated 20-day drilling schedule.
Baker Hughes Eases the Pain of Intervention from Artificial Lift
2024-10-11 - To lessen the “pain of intervention” during artificial lift, Baker Hughes’ Primera and InjectRT services take an innovative approach to address industry challenges.
TGS Extends Appalachian Basin 3D Seismic Survey
2024-10-23 - TGS said the survey, which is positioned up-dip from the Utica condensate and gas trend, will target 276 sq miles of “key” formations in the Appalachian Basin.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.