Vermilion Energy buys Leucrotta Exploration for $477 million

Vermilion Energy Inc. has signed a deal to buy Montney-focused oil and natural gas exploration and development junior energy company Leucrotta Exploration Inc. for $477 million.

Leucrotta has property in northeast British Columbia and northwest Alberta.

The deal will see part of the Leucrotta land base and about $43.5 million in cash transferred to a new company which will be managed by the existing Leucrotta team.

Under the agreement, Leucrotta shareholders will receive $1.73 in cash plus one common share and 0.1917 common share purchase warrants in the new company for each Leucrotta share held.

Vermilion will also acquire a 12.5 per cent stake in the new company for $14 million.

The deal, which is expected to close in the second half of May, is subject to conditions, including approval by Leucrotta shareholders and security holders as well as court and regulatory approvals.

(Canadian Press)