CALGARY -- In another sign of ongoing Canadian oilpatch consolidation, Tamarack Valley Energy Ltd. says it has agreed to buy private Anegada Oil Corp. for a net $494 million.

The Calgary-based oil and gas producer says it will pay $248 million in cash and assumed debt (after deducting proceeds from a royalty sale) and issue about $246 million in shares at a deemed price of $2.34 each for Anegada, which produces about 11,800 barrels of oil equivalent per day from the Charlie Lake area of northwestern Alberta.

Tamarack Valley also says it has sold a two per cent royalty on its Charlie Lake assets for $32 million to Topaz Energy Corp., a company created by Tourmaline Oil Corp. to hold petroleum processing and handling assets and taken public in a $250-million initial public offering in October.

Last month, Tamarack Valley announced the close of two other acquisitions for about $135 million, including the purchase of private Woodcote Petroleum Inc. for cash and shares.

The deals were backed by the sale of two four-per-cent royalties to Topaz. At the same time, Tamarack Valley issued 30.3 million shares for gross proceeds of about $68 million.

Tamarack Valley said Monday its 2021 capital budget has been raised from about $127 million to $170 million and it expects to have average production this year of 33,000 boe/d, up from 26,000 boe/d.

"Our strategic portfolio approach of investing in high impact oil plays, combined with a focus on decline mitigation through our waterflood assets, enhances corporate free cash flow sustainability and resiliency," said Tamarack Valley CEO Brian Schmidt.

This report by The Canadian Press was first published April 12, 2021.