Tourmaline trims Topaz Energy stake for C$200m
Tourmaline Oil trimmed its stake in Topaz Energy via a C$200.8m (US$146.6m) bought deal to help fund a new project.
Peters & Co and Scotia Capital were joint bookrunners on the secondary sale of 8m Topaz shares at C$25.10, a 4.1% discount to the TSX C$26.18 close on Wednesday.
Tourmaline’s stake in Topaz falls to 16.1% from 21.3% previously, with a further reduction to 15% if a greenshoe is fully exercised.
Tourmaline is using proceeds to fund its planned project to expand its operations in the liquids-rich Montney formation in Northeast British Columbia. It aims to grow production by 30% to 850,000 barrels of oil equivalent per day by 2031 and boost cashflow by more than 40% as a result.
Tourmaline spun out Topaz in 2019 as a separate royalty and infrastructure company and floated it in a TSX IPO the following year. It raised C$345m late last year by selling 12.4m Topaz shares.