CALGARY, AB, July 15, 2020 /CNW/ - Tourmaline Oil Corp. (TSX:
TOU) ("Tourmaline" or the "Company") is pleased to
announce that the Toronto Stock Exchange (the "TSX") has
approved the renewal of Tourmaline's normal course issuer bid (the
"NCIB").
The NCIB allows Tourmaline to purchase up to 13,538,778 common
shares (representing 5% of its 270,775,559 outstanding common
shares as of June 30, 2020) over a
period of twelve months commencing on July
20, 2020. The NCIB will expire no later than July 19, 2021. Under the NCIB, common shares may
be repurchased in open market transactions on the TSX and other
alternative trading platforms in Canada and in accordance with the rules of the
TSX governing NCIB's. The total number of common shares Tourmaline
is permitted to purchase is subject to a daily purchase limit of
485,268 common shares, representing 25% of the average daily
trading volume of 1,941,075 common shares on the TSX calculated for
the six-month period ended June 30,
2020, however, Tourmaline may make one block purchase per
calendar week which exceeds the daily repurchase
restrictions. Any common shares that are purchased under the
NCIB will be cancelled upon their purchase by Tourmaline.
Under its most recent normal course issuer bid, Tourmaline
obtained approval to purchase up to 13,602,507 of its common
shares, of which Tourmaline purchased 1,274,600 at a weighted
average price of $11.66 per common
share between July 8, 2019 and
July 7, 2020, through the facilities
of the TSX.
Tourmaline believes that at times, the prevailing share price
does not reflect the underlying value of the common shares and the
repurchase of its common shares for cancellation represents an
attractive opportunity to enhance Tourmaline's per share metrics
and thereby increase the underlying value of its common shares to
its shareholders. Tourmaline will use the NCIB as another tool to
enhance total long-term shareholder returns and will be used in
conjunction with management's disciplined free funds flow capital
allocation strategy.
Reader Advisories
Currency
All amounts in this news release are stated in Canadian dollars
unless otherwise specified.
Forward-Looking Information
This news release contains forward-looking information and
statements (collectively, "forward-looking information")
within the meaning of applicable securities laws. The use of any of
the words "forecast", "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "on track", "may", "will",
"project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify forward-looking information.
More particularly and without limitation, this news release
contains forward-looking information concerning the belief that
Tourmaline's share price does not reflect the underlying value of
the common shares and the benefits to be derived from and the
purpose of the NCIB. The forward-looking information is based on
certain key expectations and assumptions made by Tourmaline,
including expectations and assumptions concerning the following:
prevailing and future commodity prices and currency exchange rates;
the degree to which Tourmaline's operations and production will be
disrupted by circumstances attributable to the COVID-19 pandemic
and the responses of governments and the public to the pandemic;
applicable royalty rates and tax laws; interest rates; future well
production rates and reserve volumes; operating costs, the timing
of receipt of regulatory approvals; the performance of existing
wells; the success obtained in drilling new wells; anticipated
timing and results of capital expenditures; the sufficiency of
budgeted capital expenditures in carrying out planned activities;
the timing, location and extent of future drilling operations; the
benefits to be derived from acquisitions; the state of the economy
and the exploration and production business including the impacts
of the COVID-19 pandemic and the responses of governments and
the public to the pandemic thereon; the availability and cost of
financing, labour and services; and ability to market crude oil,
natural gas and natural gas liquids successfully. Without
limitation of the foregoing, future dividend payments, if any, and
the level thereof is uncertain, as the Company's dividend policy
and the funds available for the payment of dividends from time to
time is dependent upon, among other things, free cash flow,
financial requirements for the Company's operations and the
execution of its growth strategy, fluctuations in working capital
and the timing and amount of capital expenditures, debt service
requirements and other factors beyond the Company's
control. Further, the ability of Tourmaline to pay dividends
will be subject to applicable laws (including the satisfaction of
the solvency test contained in applicable corporate legislation)
and contractual restrictions contained in the instruments governing
its indebtedness, including its credit facility.
Although Tourmaline believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because Tourmaline can give no
assurances that it will prove to be correct. Since forward-looking
information addresses future events and conditions, by its very
nature it involves inherent risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to:
the risks associated with the oil and gas industry in general such
as operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertain
impacts of COVID-19 on Tourmaline's business, and the societal,
economic and governmental response to COVID-19; the uncertainty of
estimates and projections relating to reserves, production,
revenues, costs and expenses; health, safety and environmental
risks; commodity price and exchange rate fluctuations; interest
rate fluctuations; marketing and transportation; loss of markets;
environmental risks; competition; incorrect assessment of the value
of acquisitions; failure to complete or realize the anticipated
benefits of acquisitions or dispositions; ability to access
sufficient capital from internal and external
sources; uncertainties associated with counterparty credit
risk; failure to obtain required regulatory and other approvals;
and changes in legislation, including but not limited to tax laws,
royalties and environmental regulations. Readers are cautioned that
the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could
affect Tourmaline, or its operations or financial results, are
included in the Company's most recently filed Management's
Discussion and Analysis (See "Forward-Looking Statements" therein),
Annual Information Form (See "Risk Factors" and "Forward-Looking
Statements" therein) and other reports on file with applicable
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com) or Tourmaline's website
(www.tourmalineoil.com).
The forward-looking information contained in this news release
is made as of the date hereof and Tourmaline undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless expressly required by applicable securities
laws.
About Tourmaline Oil Corp.
Tourmaline is a Canadian senior crude oil and natural gas
exploration and production company focused on long-term growth
through an aggressive exploration, development, production and
acquisition program in the Western Canadian Sedimentary Basin.
SOURCE Tourmaline Oil Corp.