Tourmaline Oil to Acquire Chinook Energy
TSX-listed Tourmaline Oil Corp. has entered into a definitive agreement to acquire Canadian peer Chinook Energy Inc. for a total cash consideration of approximately C$24.4 million, including the assumption of Chinook’s outstanding debt.
Previously, during November 2019, Chinook announced that the company had initiated a formal review process to identify, examine and consider a range of strategic alternatives to enhance shareholder value.
Tourmaline’s offer of C$0.0675 per Chinook share represents a 33% premium over the 20-day volume weighted average trading price of the Chinook shares on the TSX.
Chinook’s assets include 54,000 acres of Montney lands in the Birley/Umbach area of Northeast British Columbia with approximately 3,500 barrels of oil equivalent (boe) per day of production, 35.6 million boe of 2P reserves, a gas plant, a compressor station, and a 190 million cubic feet per day regional 12-inch pipeline.
The transaction will be completed by way of a plan of arrangement under the Business Corporations Act (Alberta), and is expected to close in late April. Peters & Co. acted as financial advisor to Chinook on the transaction.