Canada's Tourmaline Oil(TOU.TO),opens new tab said on Monday it will acquire Crew Energy(CR.TO),opens new tab in a C$1.3 billion($947.52 million)all-stock deal,which includes debt,to boost its presence in the Montney shale play in Alberta.

The shale formation,which spans northern Alberta and British Columbia,accounts for roughly half of Canada's gas production,and is one of the country's most attractive energy-producing regions due to its strong economics.

Crew Energy shareholders will receive 0.114802 Tourmaline shares for every share of Crew Energy held,valuing the deal at about C$6.69 per Crew share,representing a premium of around 72%over Friday's closing prices.

The company said the acquisition,which is expected to close in early October,will add over C$200 million to Tourmaline's projected 2025 free cash flow.

The Crew assets are immediately adjacent to Tourmaline's existing South Montney-operated complex.

The deal includes existing low decline average base production of 29,000-30,000 barrels of oil equivalent per day(boepd),and proved and probable reserves of 473.2 million barrels of oil,Tourmaline said.

The company said it has raised its average production outlook for the current year to 582,500-592,500 boepd from 575,000-585,000 boepd if the deal closes as expected.

The Calgary,Alberta-based company also authorized an increase in the quarterly dividend to 35 Canadian cents per share in the third quarter,from 33 Canadian cents per share.

（Picture: Veer）