Canada's Long Run Exploration to buy Crocotta Energy
(Reuters) - Canadian oil and gas producer Long Run Exploration Ltd LRE.TO said it would buy Crocotta Energy Inc CTA.TO for about C$357 million ($329 million), including debt.
Under the terms of the deal, Long Run will acquire Crocotta's Edson Cardium and Bluesky assets in Edmonton, Alberta.
The deal includes the assumption of about $115 million in debt.
Long Run said the deal would allow it to add about 7,500 barrels of oil equivalent per day (boe/d) in natural gas and light oil production.
The Calgary, Alberta-based company also raised its average production forecast for 2014 to 32,100 boe/d from its earlier range of 25,500-26,500 boe/d. It increased its average production forecast for 2015 to 43,200 boe/d after the deal.
The deal follows Long Run's acquisition of natural gas assets in Alberta from Crew Energy Inc (CR.TO: Quote) in April for about C$225 million or about $206 million at the time the deal was announced.
The boards of directors of both companies have approved the deal.
Long Run shares closed at C$5.63 on the Toronto Stock Exchange on Thursday, while shares of Crocotta Energy closed at C$4.16.
(Reporting By Narottam Medhora in Bangalore; Editing by Simon Jennings)
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