Canada sees $1-bln oil and gas acquisition

Canada

CALGARY, October 17, 2023 – Tourmaline Oil has agreed to acquire local competitor Bonavista Energy for USD 1.06 billion in cash and stock, Canada’s largest gas producer announced on Monday.

The purchase consists of USD 532 million worth of common shares in Tourmaline Oil and USD 532 million in cash.

The acquisition is expected to raise Tourmaline Oil’s production to more than 600,000 bopd at the end of 2023 and generate net operating income of USD 330 million per year from 2024 to 2026.

The deal is expected to close in the second half of November 2023.

Bonavista Energy’s assets are located in Alberta’s Deep Basin where Tourmaline Oil is the largest producer and contain existing 2P reserves of 459 million boe.

In September 2023, Spanish energy giant Repsol signed an agreement to sell its Canadian upstream business to Peyto Exploration & Development Corporation for USD 468 million.