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CALGARY, AB – Topaz Energy Corp. ( TSX: TPZ ) (“Topaz” or the “Company”) is pleased to announce that it has entered into a strategic alliance with a private midstream water company (“Co-Venturer”), and together, entered into definitive agreements to each acquire a working interest in certain water infrastructure assets from an E&P producer (“Producer”) along with a long-term fixed take-or-pay water disposal agreement whereby the Producer retains operatorship and obtains committed access to cost efficient and environmentally responsible water disposal, sourcing and storage (the “Water Infrastructure Acquisition”). The Water Infrastructure Acquisition provides capital to the Producer and demonstrates Topaz’s growth strategy to provide free cash flow growth and diversification for Topaz. Pursuant to the Water Infrastructure Acquisition, Topaz, together with its Co-Venturer, will acquire a 99% non-operated working interest in pipeline connected disposal facilities along with water storage reservoirs in one of the most prolific areas of the Alberta Montney for total cash consideration of $24 million (Topaz’s 50% share of $12 million was funded from its available cash on hand). Topaz and its Co-Venturer also entered into an option agreement (“Option Agreement”) which provides an option to invest up to an additional $20 million in future expansions […]
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