Tourmaline Buys Bonavista for $1.1 Billion in Gas-Growth Bid
- Deal expands position in Deep Basin gas play in western Canada
- Acquisition would boost output to 600,000 barrels a day
Tourmaline Oil CEO Mike Rose
Photographer: Victor J. BlueThis article is for subscribers only.
Tourmaline Oil Corp. agreed to buy Bonavista Energy Corp. for about C$1.5 billion ($1.1 billion) in cash and stock to increase its presence in the Deep Basin gas play in western Canada.
Canada’s largest gas producer will acquire Bonavista for C$725 million in Tourmaline common shares and C$725 million in cash, less Bonavista’s net debt, the Calgary-based company said Monday. Tourmaline’s output will increase to the equivalent of 600,000 barrels of oil a day after the acquisition, which is expected to close late next month.