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Michael Rose, CEO of Tourmaline Oil Corp.CHRIS BOLIN/The Globe and Mail

Tourmaline Oil Corp. is joining the recent rush of oil-patch financings with a $185-million bought deal partly aimed at funding future acquisitions.

Tourmaline, led by chief executive officer Mike Rose, said proceeds will also be used to reduce debt and for general corporate purposes. The company has traditionally been a favourite with investors, even during tough times in the energy sector.

The deal extends a string of financings among junior and intermediate exploration and production companies since the start of the year which one Calgary-based investment banker believes signals the early stages of the industry's recovery.

Raging River Exploration Inc., Secure Energy Services Inc., Advantage Oil & Gas Ltd. and Seven Generations Energy Ltd. are among such companies issuing shares recently as crude prices have climbed from multiyear lows last month.

Tourmaline said it is offering 6.8-million shares at $27.11 apiece, and underwriters have an overallotment option for another 15 per cent. Officers and directors of Tourmaline also plan to buy a total of 30,000 shares.

The offering is led by Peters & Co. Ltd., which has led several of the other recent ones as well.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 27/03/24 4:00pm EDT.

SymbolName% changeLast
AAV-T
Advantage Oil & Gas Ltd
-1.82%9.69
SES-T
Secure Energy Services Inc
+0.18%11.19
TOU-T
Tourmaline Oil Corp
+2.7%62.28

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