Canada’s largest natural gas producer, Tourmaline Oil Corp., disclosed it plans to acquire Bonavista Energy Corp. as it looks to add “decades of inventory” to its existing Deep Basin assets in Alberta, according to the firm.

Calgary-based Tourmaline signed an agreement to acquire Bonavista in a deal valued at $1.1 billion (C$1.45 billion). The acquisition could close by the end of next month, according to Tourmaline.

If closed, the firm “expects to exit 2023 with production of over 600,000” boe/d. Tourmaline estimates 43% of its 2023 production would be composed of conventional natural gas and 33% from shale gas. Natural gas liquids and oil would make up 16% and 9%, respectively.

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