Vermilion Energy Acquires Montney-Focused Energy Explorer Leucrotta For $477 Million
Vermilion Energy Inc. (TSX: VET) announced on Tuesday that it has closed the acquisition of Leucrotta Exploration Inc. (TSXV: LXE). The transaction is reportedly for a total consideration of approximately $477 million.
The acquisition entails purchasing all of Leucrotta’s outstanding shares, not including the 2.9% equity already held by Vermilion, at $1.73 per share. This also includes acquiring all “flow-through” purchase warrants at $0.76 a piece.
The transaction also includes acquiring 53.3 million shares of fellow Montney-focused energy exploration firm Coelacanth Energy Inc. for $14.3 million in total consideration.
With the purchase, Vermilion gets to own Leucrotta’s Mica property, which consists of 81,000 gross (77,000 net) contiguous acres of Montney mineral rights in the Peace River Arch along the shared Alberta-British Columbia border.
“Over the past two months since time of deal announcement, North American gas prices have strengthened, as illustrated by the 35% increase to 2023 AECO strip further reinforcing the profitability of the Mica property,” the company said in its statement.
Following the acquisition, Leucrotta is set to be taken private and will delist its shares from the TSX Venture. Meanwhile, Coelacanth is currently applying to be listed on the TSX Venture under the symbol “CEI”.
In its Q1 2022 financials, Leucrotta reported $20.8 million in oil and natural gas sales and $6.6 million in net earnings. The company also said it is operating at an average of 4,384 boe/d throughput.
Vermilion Energy last traded at $27.36 on the TSX while Leucrotta Exploration last traded at $2.21 on the TSX Venture before trading was halted.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
