Lured by liquids-rich natural gas and growth prospects, Topaz Energy Corp. has snagged a share in Tourmaline Oil Corp.’s production from the Montney Shale in northeastern British Columbia (BC) for C$145 million ($116 million).

The deal announced Thursday gives Topaz 4% royalty interests in gas and 2.5% in liquids tapped by larger player Tourmaline Oil Corp. from 296,000 Montney acres. The gas share drops to 3% at the end of 2023.

Growth is built into the acquisition of a piece of Tourmaline’s BC action. Processing capacity additions now in progress are forecast to increase the royalty area’s total production by 20% to gas and liquids equivalent of about 60,000 b/d from 50,000 b/d. The well flows are 19% natural gas liquids.

A further 1,700 future drilling locations...