Topaz to acquire Montney royalty assets from Tourmaline

Executive Summary

• Topaz Energy Corp. entered definitive agreements to acquire gross overriding royalty interests on ~134,000 gross acres in the NEBC Montney core area from Tourmaline Oil Corp. for a cash consideration of $71.7 million (pre‑closing adjustments).
• The acquired acreage is >65% undeveloped and contains approximately 410 Tier 1 future Montney drilling locations with multizone upside, aligning Topaz with Tourmaline’s multi‑year NEBC Montney build‑out plan.
• Financing will be sourced from Topaz’s existing credit facilities; the transaction does not involve new equity or debt issuance.

Key Details

• Acquisition Target: Gross overriding royalty interests on ~134,000 gross acres in northeastern British Columbia (NEBC) Montney core area.
• Seller: Tourmaline Oil Corp. (Canada’s largest natural‑gas producer).
• Purchase Price: $71.7 million cash (subject to customary closing adjustments).
• Asset Profile: >65% of the acreage is undeveloped; contains ~410 primarily Tier 1 future Montney drilling locations (per Tourmaline’s internal estimate dated May 7, 2025).
• Strategic Rationale: Provides Topaz full alignment with Tourmaline’s growth projects and multiyear NEBC Montney build‑out plan; adds multizone upside optionality.
• Financing: Entirely funded through Topaz’s existing credit facilities—no new financing arrangements disclosed.
• Upcoming Financial Disclosure: Third‑quarter 2025 results scheduled for release on 2025‑11‑03; conference call to be held on 2025‑11‑04 at 9:00 a.m. MST (11:00 a.m. EST).

Notable Quotes

(No direct quotes were provided in the release.)