UPDATE 2-Canada's Long Run Exploration to buy Crocotta Energy

Thu Jun 12, 2014 5:02pm EDT
 
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(Changes deal value to Canadian dollar after company's clarification)

June 12 (Reuters) - Canadian oil and gas producer Long Run Exploration Ltd said it would buy Crocotta Energy Inc 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 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. ($1 = 1.0852 Canadian Dollars) (Reporting By Narottam Medhora in Bangalore; Editing by Simon Jennings)