Tourmaline Oil signs deal to buy Black Swan Energy worth $1.1B in stock and debt

The Tourmaline Oil Corp. logo is shown in this undated handout photo. Tourmaline Oil Corp. is reporting higher fourth-quarter earnings and production along with a 14 per cent increase in its dividend following a year in which it completed four corporate acquisitions. THE CANADIAN PRESS/HO, Tourmaline Oil Corp.

CALGARY -

Tourmaline Oil Corp. says it has signed a deal to buy Black Swan Energy Ltd. in a deal worth $1.1 billion in stock and debt.

Under the agreement for the privately held company, Tourmaline will pay 26 million shares and assume up to $350 million in debt.

Tourmaline says the acquisition of Black Swan and its assets in northeast British Columbia is part of its consolidation strategy in the North Montney region that it expects to be a key area of growth.

The company says it now expects to average approximately 500,000 barrels of oil equivalent per day of production by mid-2022.

The deal is expected to close in the second half of July, subject to regulatory approvals.

Tourmaline says its board has also approved an increase in the company's quarterly dividend of a penny per share to 17 cents, effective in the third quarter.

This report by The Canadian Press was first published June 11, 2021.