12:04:31 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Tourmaline Oil Corp
Symbol TOU
Shares Issued 235,715,238
Close 2016-10-21 C$ 38.73
Market Cap C$ 9,129,251,168
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Globe says Tourmaline shows asset values under pressure

2016-10-24 08:18 ET - In the News

The Globe and Mail reports in its Saturday edition that Tourmaline Oil chief executive officer Mike Rose just bought what the company says is prized real estate in an old haunt at a bargain price. The Globe's Jeff Lewis writes that Tourmaline is acquiring B.C. and Alberta natural gas assets from Royal Dutch Shell for $1.4-billion in cash and stock. The deal includes lands and processing infrastructure in the Alberta Deep basin that Mr. Rose originally sold to Shell at the peak of the market in mid-2008, when oil prices climbed as high as $140 (U.S.) a barrel. At the time, the European oil major bought Mr. Rose's last company, Duvernay Oil Corp., for $5.23-billion (Canadian). The latest transaction underlines how far oil markets have fallen in recent years and shows that asset values remain under pressure, even as crude has nearly doubled from lows hit earlier this year. Tourmaline is paying $1-billion in cash and the rest in stock, giving Shell a sizable equity stake in the company valued at $279-million (U.S.). It follows a similar deal structure used by Paramount Resources. Mr. Rose, who once worked for Shell, said Friday that the equity portion of the deal helped close a "valuation gap."

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