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 This material may not be published, broadcast, rewritten or redistributed.

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