Canadian oil and gas producer Tourmaline Oil Corp said on Wednesday it has acquired Jupiter Resources Ltd in an all-stock deal valued at approximately C$626 million ($476.63 million), inclusive of debt.
Tourmaline also said it bought Modern Resources Inc for C$144 million in a cash and stock deal on Nov. 2 and hopes the two deals will lift its average annual output next year to about 400,000 barrels of oil equivalent per day, a 25% hike from a prior forecast.
The deals come close on the heels of Cenovus Energy’s recent C$3.8 billion acquisition of rival Husky Energy Inc to create Canada’s No. 3 oil and gas producer, as a pandemic-led demand collapse drives firms to consolidation for growth in a lower oil price environment.
Tourmaline said for each common share, Jupiter shareholders will receive about 0.2365 of a Tourmaline common share. For the Modern deal, the company offered C$73.75 million cash and 1.5 million common shares.
Source: Reuters
