2011-06-15-2011-05-24

To buy company with 87,580 net acres in AB & BC, gaining 3,740 BOE/d, 9.4 MMBOE proved.

Tourmaline Oil Corp., Calgary, (Toronto: TOU) plans to acquire Cinch Energy Corp., Calgary, (Toronto: CNH) for approximately C$205 million in stock and assumed debt.

Tourmaline will issue 0.06366 Tourmaline share per Cinch share for a total 6.32 million and will assume an estimated C$22 million of net debt.

The deal values production at C$43,048 per barrels of oil equivalent per day, proved reserves at C$17.05 per barrel equivalent and proved and probable reserves at C$11.94 per barrel equivalent, according to Tourmaline.

Cinch's assts include 87,580 net acres of undeveloped land in Alberta and British Columbia, the majority of which is jointly owned with Tourmaline. Cinch's two largest properties, Dawson and Musreau-Kakwa, are in western Alberta and are jointly owned with, and operated by, Tourmaline. In the second half of 2011 and in 2012, Tourmaline intends to drill up to 35 wells on these two properties.

Production is 3,740 barrels equivalent per day. Proved reserves are 9.4 million barrels equivalent and proved and probable reserves are 13.5 million barrels equivalent.

The deal will consolidate certain Tourmaline-operated assets in the Dawson and Musreau-Kakwa areas.

Peters & Co. Ltd. is financial advisor to Tourmaline. RBC Capital Markets is financial advisor to Cinch.

The deal is expected to close in July.