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Topaz Energy Corp. Announces Strategic Royalty Acquisition in the Alberta Deep Basin
Topaz Energy Corp. Announces Strategic Royalty Acquisition in the Alberta Deep Basin ...
About this update from Topaz Energy Corp
[{"type":"text","content":"\n \n \n \n Topaz Energy Corp. Announces Strategic Royalty Acquisition in the Alberta Deep Basin\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n CALGARY, AB, Nov. 4, 2020\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Nov. 4, 2020\n \n /CNW/ - Topaz Energy Corp. (TSX: TPZ) (\"Topaz\" or the \"Company\") is pleased to announce that in furtherance of its growth strategy of acquiring low-risk, stable and predictable revenue from its high-quality strategic partners it has entered into a definitive agreement with Tourmaline Oil Corp. (\"Tourmaline\") for the purchase of additional royalty assets (the \"Royalty Acquisition\"). The Royalty Acquisition provides free cash flow growth and enhanced sustainability for Topaz while enabling Tourmaline to advance its own growth.\n \n \n \n \n \n \n \n \n \n Pursuant to the Royalty Acquisition, Topaz will acquire a newly created gross overriding royalty interest on natural gas, crude oil, and condensate production on over 720,000 gross acres of Tourmaline's developed and undeveloped lands in the Alberta Deep Basin (\"Deep Basin\"), which is contiguous with Topaz's existing Deep Basin royalty interest acreage, for total cash consideration of\n \n $130 million\n \n . Topaz will fund the Royalty Acquisition from its available cash on hand.\n \n \n The Royalty Acquisition is expected to close on\n \n January 1, 2021\n \n , subject to satisfaction of customary closing conditions including Tourmaline completing a corporate acquisition it announced today.\n \n \n \n Strategic Rationale\n \n \n \n In the Deep Basin, Tourmaline is the largest producer with 2020 average production estimated at approximately 163,000-168,000 boe/d and since inception, has drilled over 800 gross natural gas wells, with six drilling rigs currently active.  Topaz currently owns gross overriding royalty interests on all of Tourmaline's Deep Basin acreage and the Royalty Acquisition provides a 31% increase to Topaz's total gross royalty interest acreage and a meaningful expansion of drilling location inventory on its royalty lands.
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