Exploration & Production | Finance & Investing | Capital Markets | Drilling Program

Tourmaline Funding Montney Drilling Program

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   |    Tuesday,June 02,2015

Tourmaline Oil Corp. has announced that it has entered into a bought-deal financing with a syndicate of underwriters led by Peters & Co. Limited and including FirstEnergy Capital Corp., Scotia Capital Inc., CIBC, National Bank Financial Inc., TD Securities Inc., RBC Capital Markets, and Raymond James Ltd. Tourmaline will issue 3,700,000 common shares at a price of $39.50 per Common Share for gross proceeds of $146,150,000.

The Underwriters will have an option to purchase up to an additional 15% of the Common Shares issued under this brokered offering at a price of $39.50 per Common Share to cover over-allotments exercisable in whole or in part at any time until 30 days after the closing. In conjunction with the offering, certain officers, directors and employees of Tourmaline and their associates intend to participate by purchasing up to 60,000 Common Shares at a price of $39.50 per Common Share on a private placement basis.

The bought deal offering will be completed by way of short form prospectus in all of the provinces of Canada and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended. The offering is subject to customary conditions including receipt of applicable regulatory approvals and is expected to close on or about June 23, 2015.

The net proceeds of the financing will be used to temporarily reduce indebtedness, which will then be available to be redrawn and applied to expand the Company's planned 2015 drilling program in its NEBC Montney and Alberta Deep Basin core areas and for general working capital purposes.

Additional wells will target new pool EP opportunities as well as follow-ups to successful Q1 2015 high deliverability delineation wells. All of the incremental wells are within the fetch area of Tourmaline's existing infrastructure and are expected to be tied in by year end 2015 or during the first quarter of 2016.