05:14 PM EDT, 10/01/2024 (MT Newswires) -- Tourmaline Oil (TOU.TO) after trade Tuesday said it completed the $1.4-billion acquisition of Crew Energy ( CWEGF ) to expand its Western Canadian oil and gas production.

The acquisition is a key part of Tourmaline's ongoing consolidation strategy in Northeast British Columbia (NEBC) and is set to improve the company's financial and reserve metrics, adding over $200 million to its projected free cash flow for 2025 and around 29,000 barrels of oil equivalent per day of production, the company said.

The company also said that it agreed to sell a gross overriding royalty interest to Topaz Energy ( TPZEF ) on the recently acquired Crew lands, Bonavista Energy lands from 2023, and new Deep Basin, Peace River High, and NEBC lands acquired over the past two years, for $278.2 million. The acquisition immediately offers Topaz 50% more royalty acreage, a 12% increase in royalty production, and an 8% rise in royalty revenue.

Topaz said it will finance the acquisition, set to close on Nov. 1, with a $175.4 million bought-deal share offering and its current credit facilities.

Tourmaline shares closed up $0.46 to $63.27 on the Toronto Stock Exchange, while Topaz closed up $0.28 to $26.13.