Tourmaline to buy private oil producer for C$258 million

Tue Oct 23, 2012 8:53am EDT

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(Reuters) - Canada's Tourmaline Oil Corp (TOU.TO) said it will buy privately held oil and gas producer Huron Energy Corp in an all-share deal valued at about C$258 million ($259.7 million) to expand its presence in the Montney shale region in British Columbia.

The acquisition will add about 5,500 barrels of oil equivalent per day to current production, Tourmaline said.

Huron shareholders will receive 0.07644 of a common share of Tourmaline for each Huron share held.

Tourmaline said it will issue about 7.4 million common shares to acquire Huron. The company had 165.2 million shares outstanding as of September 26, according to Thomson Reuters data.

The deal is expected to close in early December.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Sriraj Kalluvila)

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