Tourmaline Oil Corp. said Feb. 2 it has acquired assets in the Minehead-Edson-Ansell area of the Alberta Deep Basin for about C$183 million (US$130.4 million).
Tourmaline also acquired the associated gathering system. The seller wasn't disclosed.
The assets are immediately adjacent to one of the Calgary, Alberta company's largest-producing complexes. They are also within one of the large Cretaceous Wilrich 'sweet spots' that the company has identified through the 2014-15 drilling programs in the Deep Basin, according to the release.
Current production is ranging between 4,500 and 5,000 barrels of oil equivalent per day (boe/d).The assets also have multiple additional development opportunities in the Notikewin and Falher C formations.
Tourmaline plans to grow this production to 7,500 boe/d in the second half of 2016 with significant further anticipated growth in 2017.
Fully developed, the acquired assets are anticipated to add an estimated 66 Mboe to the company's 2P reserves over the next two years, the release said.
To accommodate the acquisition, Tourmaline will reduce the current C$1.1 billion 2016 capital program by C$175 million to C$925 million. Cash flow for 2016 from the acquisition is estimated at between C$30- and C$35 million.
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