Canada’s Topaz Energy builds Montney royalty position
Canadian royalty and energy infrastructure company Topaz Energy, spun out by Tourmaline Oil in 2019, said July 15 it had added to its Montney royalty position with a C$145mn (US$115mn) acquisition of gross overriding royalty (GORR) interests from Tourmaline.
The acquisition of newly-created GORR interests on about 296,000 gross acres of Tourmaline’s developed and undeveloped lands in the northeast BC Montney (NEBC) play, expected to close August 1, will increase Topaz’s existing acreage in the area by about 53%. The acquired GORR interests consist of 4% on natural gas production until the end of 2023, 3% thereafter, and 2.5% on crude oil and condensate production.
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Tourmaline acquired the NEBC assets in an earlier C$1.1bn deal to acquire Black Swan Energy, which closed July 15, and an C$88mn asset acquisition from Paramount Resources, which it also disclosed July 15.
The assets currently produce about 50,000 barrels of oil equivalent (boe)/day, about 19% of which are natural gas liquids, but production should increase to about 60,000 boe/d next year when deep cut facility enhancements now underway are completed. Tourmaline has identified 1,700 gross future drilling locations on the 296,000 acres.