Oct 16 Reuters Tourmaline Oil said on Monday it will acquire Bonavista Energy for C1.45 billion 1.06 billion to expand its presence in Western Canada39;s Deep Basin.

The Bonavista assets are an extension of Tourmaline39;s existing operations in the Deep Basin where Tourmaline is already the largest producer.

Following closing of the acquisition, expected in the second half of November, Tourmaline expects to exit 2023 with production of more than 600,000 barrels of oil equivalent per day.

The offer consists of C725 million in Tourmaline common shares and C725 million in cash.

The deal would be immediately accretive to Tourmaline39;s 2024 free cash flow and generate net operating income of about C450 million per year in 2024 through 2026, the company said.

Bonavista, a major oil and gas producer, delisted from the Toronto Stock Exchange in 2020 as part of a recapitalization plan.

The deal follows Canadian natural gas firm Peyto Exploration Development39;s 468 million deal to buy Spanish energy company Repsol39;s Deep Basin assets.

ourmaline said it would also raise its quarterly dividend by 7.7.

1 1.3626 Canadian dollars

Reporting by Sourasis Bose in Bengaluru; Editing by Shounak Dasgupta

Source Reuters