Canadian oil and gas producer Tourmaline Oil Corp. said on Nov. 4 it has acquired Jupiter Resources Ltd. in an all-stock deal valued at approximately CA$626 million (US$476.63 million), inclusive of debt.

Tourmaline also said it bought Modern Resources Inc. for CA$144 million in a cash and stock deal on Nov. 2, and hopes the two deals will lift its average annual output next year to about 400,000 boe/d, a 25% hike from a prior forecast.

The deals come close on the heels of Cenovus Energy Inc.'s recent CA$3.8 billion acquisition of rival Husky Energy Inc. to create Canada's No. 3 oil and gas producer, as a pandemic-led demand collapse drives firms to consolidation for growth in a lower oil price environment.

Tourmaline said for each common share, Jupiter shareholders will receive about 0.2365 of a Tourmaline common share. For the Modern deal, the company offered CA$73.75 million cash and 1.5 million common shares.

Calgary-based Jupiter is focused on the development of unconventional liquids-rich natural gas properties in the Western Canadian sedimentary basin and its assets, located in the Alberta Deep Basin, are adjacent to the Modern assets.

The Jupiter Resources deal is expected to close by the end of 2020. (US$1 = CA$1.3134)