Insight

Crew Acquisition Provides Plenty Of Upside For Tourmaline

Published: Oct 17, 2024
by Bruce Hancock, P.Geo.
gDC Cloud insights - Crew acquisition provides plenty of upside for Tourmaline

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Tourmaline Oil Corp.’s acquisition of Crew Energy’s Heritage/Monias assets in the B.C. Montney provides potential upside in the Middle Montney, along with the opportunity to optimize drilling and completions operations and production facilities.

Tourmaline clearly saw the potential for growth in the area that Crew had mapped out with an aggressive licensing push in 2023 adding 138 wells to its assets, compared to the 170 currently producing wells.

Tourmaline’s activity in the Doe area, southeast of Crew’s, is a mixture of both Upper and Middle Montney development, while Crew’s activity is firmly focused on the Upper Montney (see cross section and maps in the gDC Cloud insight below). With the limited amount of development of the Middle Montney on Crew lands, Tourmaline will more than likely take the learnings from its Middle Montney development and transfer that knowledge to optimize Crew’s assets in that bench.

Montney cross section

Completion design differences are evident, starting with Crew’s more aggressive well designs including longer laterals, higher proppant and fluid intensities in both the Upper and the Middle Montney.

Upper Montney Data Analytics

Graph showing proppant placed per well (by year)
Bar chart showing proppant intensity (per m) by year

The heterogeneity and quality of the reservoir and the benefit of exploration is highlighted by the recent liquids-rich Crew wells in the north section of the Monias area (13-36). This was probably one of the key investment criteria given the positive impact the acquisition will have on Tourmaline’s overall corporate liquids production.

There is undoubtedly much more to explore in the overall Montney formation as it continues to deliver welcome surprises.


Bruce Hancock is Director, Technical Advisory Group, at geoLOGIC systems ltd. He has over 40 years’ experience in oil and gas exploration, development, and production.