04:55 PM EST, 11/25/2024 (MT Newswires) -- Tourmaline Oil (TOU.TO) after close Monday said it is raising $242 million through a secondary public offering of part of its holdings in Topaz Energy ( TPZEF ) , a Western Canadian oil and gas royalty and infrastructure company.

Tourmaline is selling an underwriting syndicate 8.7-million Topaz shares priced at $27.80 each, while also offering the syndicate a 15% over-allotment option should demand warrant.

Following the sale, Tourmaline will hold 36.45-million Topaz shares, a 23.8% stake and down from 29.4% prior to the offering.

The company said it has a long-term plan to reduce its holdings in Topaz as that company "develops and continues to succeed as an independent royalty and infrastructure company".

Tourmaline, Canada's No.1 natural-gas producer, earmarked proceeds for its planned infrastructure expansion in northeastern British Columbia, which it expects to add over 150,000 barrels of oil equivalent per day of production over the next five years.

Topaz will receive no funds from the sale.

Tourmaline shares closed up $0.41 to $68.04 on the Toronto Stock Exchange, while Topaz closed down $0.37 to $28.98.