Tourmaline to buy private oil producer for C$258 mln

Tue Oct 23, 2012 8:52am EDT
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Oct 23 (Reuters) - Canada's Tourmaline Oil Corp said it will buy privately held oil and gas producer Huron Energy Corp in an all-share deal valued at about C$258 million ($259.7 million) to expand its presence in the Montney shale region in British Columbia.

The acquisition will add about 5,500 barrels of oil equivalent per day to current production, Tourmaline said.

Huron shareholders will receive 0.07644 of a common share of Tourmaline for each Huron share held.

Tourmaline said it will issue about 7.4 million common shares to acquire Huron. The company had 165.2 million shares outstanding as of Sept. 26, according to Thomson Reuters data.

The deal is expected to close in early December.