VET:CC - Vermilion Energy to buy Leucrotta Exploration in C$477M deal

Vermilion Energy (NYSE:VET) agrees to acquire Montney-focused oil and natural gas explorer Leucrotta Exploration (OTC:LCRTF) for C$477M (US$382.3) in cash, or C$1.73/share, a 33% premium vs. Friday's C$1.30 closing price in Toronto. As part of the deal, Vermilion will create a new company, ExploreCo, and Leucrotta shareholders would receive one share and 0.1917 warrant of the newly formed company. Leucrotta's main asset is the Mica property, which has 77K net contiguous acres of mineral rights in western Canada's Montney shale play. Vermilion raises its 2022 production guidance to 86K-88K boe/day and its E&D capital budget to C$500M to account for the deal. With the execution of the planned Mica drilling program and the anticipated close of the Corrib acquisition in H2 2022, the company expects to exit the year with total production of 95K-100K boe/day. Given its forecast free cash flow, Vermilion "could still provide a massive 20%-plus shareholder yield

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Vermilion Energy to buy Leucrotta Exploration in C$477M deal