Tourmaline released its Q3 results last week, which readers can access here.
In the company’s MD&A, Tourmaline made mention that:
“On October 29, 2024, Tourmaline entered into a definitive agreement to acquire all of the issued and outstanding shares of Todd Energy Canada Limited (“Todd”) for total consideration of approximately $300.0 million, to be paid through a combination of Tourmaline common shares and cash inclusive of Todd’s net debt at closing. The transaction is expected to close in early December 2024, subject to customary regulatory approvals.”
According to BOE Intel, gross production from wells licensed to Todd has been variable, although the most recent month of public data showed new high production levels of ~10,850 BOE/d including ~2,200 bbl/d of condensate and ~1,000 bbl/d of NGLs. Keep in mind this production is on a gross basis, so the net to Todd and Tourmaline would have been split depending on the arrangements of its joint venture.
Monthly average gross production in 2024 has been ~7,900 BOE/d.
BOE Intel public data shows that there are only 33 producing wells, so the production per producing well (call it ~250-300 BOE/d depending on which production figure you use) would be one of the higher averages out there. As a result, this should be a fairly simple consolidation for Tourmaline.
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Below is a map from BOE Intel showing the public data holdings for the two companies.
- Tourmaline mineral rights (all zones) – Yellow
- Tourmaline wells – Purple
- Todd wells – Pink
