Mike Rose, CEO of Tourmaline Oil Corp.
Tourmaline Oil Corp. is tapping the market with a $146-million share issue as much of the energy the sector grapples with economic and political uncertainty.
Tourmaline, seen as one of a few companies poised to flourish in the energy-market downturn, said it will use the proceeds to reduce debt and expand natural-gas drilling in northeastern British Columbia's Montney area and the Deep Basin region of Alberta.
The company added to its West Edson play in the latter in March with a $257-million asset acquisition.
Its moves come at a time when many of its competitors have cut spending, and have recently warned that they cannot finalize drilling plans due to the commodity-price downturn and unknown future policy changes under Alberta's new NDP government.
Tourmaline, led by chief executive Mike Rose, said it is selling 3.7 million shares at $39.50 apiece in a bought deal led by Peters & Co. Ltd. Underwriters can buy up to another 15 per cent of stock in an overallotment option.
Jeffrey Jones