Tourmaline Oil Corp. has closed its $950 million (CA$1.3 billion) acquisition of Montney Shale assets from fellow Calgary-based producer Crew Energy.

Under the terms of the deal, announced in August, holders of Crew Shares received 0.114802 of a common share of Tourmaline for each Crew share. Tourmaline paid $6.69 per share of Crew stock and assumed $240 million of Crew’s net debt.

Crew’s assets are adjacent to Tourmaline’s existing South Montney-operated complex in northeast British Columbia. Crew’s portfolio brings low-decline average production of around 30,000 boe/d, including 129.6 MMcf/d of gas.

Canada’s Montney and Duvernay shales are primarily considered natural gas and NGL basins with relatively little oil production. Tourmaline bills itself as Canada’s largest natural gas producer.

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