Oct 10 (Reuters) - Tourmaline Oil Corp TOU.TO :
* ANNOUNCE FORMATION OF TOPAZ ENERGY CORP
* WILL SELL TO TOPAZ A ROYALTY INTEREST ON TOURMALINE LANDS
* WILL SELL TO TOPAZ A ROYALTY INTEREST ON TOURMALINE LANDS, CONTRACTED INTEREST IN A PORTION OF THIRD-PARTY REVENUE FOR $775 MILLION
* TOPAZ WILL BE CAPITALIZED INITIALLY WITH A $150 TO $200 MILLION THIRD-PARTY EQUITY PRIVATE PLACEMENT
* CO WILL RETAINING A 75% TO 81% EQUITY OWNERSHIP INTEREST IN NEW CO
* DEAL HAS MINIMAL IMPACT ON FORECAST 2020 CASH FLOW, NO IMPACT ON CURRENT EP PLANS
* TOPAZ WILL BEGIN OPERATIONS WITH ZERO DEBT
* ON TRANSACTION CLOSE, TOPAZ WILL HAVE MAJORITY-INDEPENDENT BOARD AND WILL BE MANAGED INITIALLY VIA A MANAGEMENT CONTRACT WITH CO
* INITIAL ACQUISITION FROM TOURMALINE IS EXPECTED TO GENERATE ABOUT $90 MILLION IN REVENUE IN 2020
* TRANSACTION IMPROVES FORECAST 2020 CASH FLOW PER SHARE (DEBT ADJUSTED) FROM $6.98 TO $7.33
* INTENDS TO REDUCE PORTION OF ITS OWNERSHIP AS TOPAZ PARTICIPATES IN FUTURE ACQUISITION ACTIVITIES
* INTENDS TO REDUCE PORTION OF ITS OWNERSHIP ON AN ANTICIPATED TOPAZ PUBLIC LIQUIDITY EVENT IN 2020