October 20, 2016 / 9:32 PM / a year ago

BRIEF-Tourmaline Oil announces strategic asset acquisition in Alberta deep basin, NEBC Montney complex

Oct 20 (Reuters) - Tourmaline Oil Corp :

* Tourmaline Oil Corp announces strategic asset acquisition in the Alberta deep basin and NEBC Montney complex, $739.4 million equity financings and increased 2017 guidance

* Cash portion of deal to be funded through committed concurrent equity financings totalling $739.4 million, existing credit facilities

* Revising full-year 2017 average production guidance to 225,000 boepd, up from 215,000 boepd previously

* Tourmaline has agreed to acquire current production of approximately 24,850 boepd, estimated current 2p reserves of 473.5 mmboe

* Now expects to achieve 2016 exit production target of 210,000-215,000 boepd in late November

* Including effect of acquisition and associated development, company is expecting 2017 production of about 250,000-260,000 boepd

* Plans to drill 13 horizontals on montney assets in 2017, 54 horizontals in 2018 in conjunction with co infrastructure construction

* Including effect of acquisition and associated development, company is expecting 2018 production levels of 310,000-320,000 boepd

* Deal for total consideration of $1.369 billion

* Deal includes cash consideration of $1.0 billion and remainder in Tourmaline common shares

* Proceeds of prospectus offering, private placement,non-brokered offering will be used to partially fund cash portion of purchase price for deal

* Entered into deals with institutional investors committed to subscribe for 18.3 million subscription receipts at $34.75/subscription receipt

* Tourmaline expects Q3 2016 cash flow to be approximately 38 pct higher than Q2 2016 Source text for Eikon: Further company coverage:

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