The independent companies Tourmaline Oil Corp. and Calgary-based Topaz Energy Corp. each acquired stakes in the Montney Shale in separate transactions to help increase the export supply of liquefied natural gas (LNG).
The recent transaction generated C $ 659.5 million ($ 527.6 million) in northeastern British Columbia (BC) asset purchases by both exploration and mining companies. production.
Tourmaline transactions are worth approximately C $ 314.5 million ($ 251.6 million) for Montney production, drilling targets and product processing capacity. A C $ 205 million ($ 164 million) resource rights purchase from Saguaro Resources Ltd.
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Tourmaline, which increased its natural gas production by 30% per year in 1Q2021, said the transactions would lead to higher production in 2021. It raises its estimated average production for 2021 to 405,000-420,000 boe / d compared to an earlier forecast of around 400,000 boe / d.
“As a key sub-basin for the supply of Canadian LNG, the company expects North Montney to be the primary engine of growth for the entire Western Canadian Sedimentary Basin over the next decade,” said Tourmaline management.
Meanwhile, Topaz paid Tourmaline C $ 245 million ($ 196 million) for production royalties and commercial interests in infrastructure at Montney and other nearby properties.
Topaz noted support for LNG Canada’s export terminal and its Coastal GasLink supply line currently under construction, as well as additional projects from Nova Gas Transmission Ltd. and Enbridge Inc.’s Westcoast pipeline system in British Columbia.
“Northeastern British Columbia Montney is well known as Western Canada’s most prolific and liquid-rich natural gas resource due to its vast geographic coverage and significant reserve potential,” said Topaz. The company’s management team said that “the BC Montney is expected to provide the strongest growth in natural gas production” in the Western Canadian Sedimentary Basin over the next decade.
Topaz also paid Cenovus Energy Inc. C $ 102 million ($ 81.6 million) for a royalty share in oil production from Marten Hills Clearwater in northern Alberta.