CALGARY — Vermilion Energy Inc. has signed a deal to buy junior energy company Leucrotta Exploration Inc. for $477 million.

Leucrotta is a Montney-focused oil and natural gas exploration and development company with 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 securityholders as well as court and regulatory approvals.

This report by The Canadian Press was first published March 28, 2022.

Companies in this story: (TSX:VET, TSXV:LXE)

The Canadian Press

News from © The Canadian Press, 2022. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • 0029 Latus Viro updated Latus phone
  • 0031 Lloydminster_Heavy_Oil_Show_2022
    0031 Lloydminster_Heavy_Oil_Show_2022
  • 0027 TED_NA Helium 2021_30
  • 0028 SIMSA_Energy_Forum_2022
  • 0025 Kendalls
  • 0026 Buffalo Potash Quinton Salt
  • 0023 LC Trucking tractor picker hiring mix
  • 0022 Grimes winter hiring
  • 0021 OSY Rentals S8 Promo
  • 0019 Jerry Mainil Ltd hiring dugout
  • 0018 IWS Hiring Royal Summer
  • 0014 Buffalo Potash What if PO
  • 0015 Latus Viro PO Ad 01
  • 0013 Panther Drilling PO ad 03 top drive rigs
  • 0011
  • 0006 JK Junior
  • 0004 Royal Helium PO Ad 02
  • 9001
  • 0002
  • 0001