Tourmaline Oil to Acquire Bonavista Energy for $1 Billion, Expanding Production in Alberta Deep Basin.

Tourmaline Oil has agreed to acquire rival Canadian firm Bonavista Energy for $1bn in a cash and stock deal worth C$1.45bn ($1.06bn). The purchase will add low-decline, long-life average production of over 60,000 barrel of oil equivalent per day to Tourmaline Energy, which is focused on the Alberta Deep Basin. Bonavistas Energy’s net operating income is estimated to be around C$450m per year in 2024 through 2026 based on strip pricing, with expected exploration and production spending of under C$225m per annum on the assets. The company possesses 459 million boe in proven and probable reserves as of 1 October 2023, along with an estimated 839 gross horizontal drilling sites and rights to 1.2 million net acres of land. The boards of directors of both companies have approved the transaction unanimously. Subject to receipt of regulatory and stock exchange approvals, the deal is anticipated to close in the latter half of next month.