October 15, 2009 / 2:01 PM / in 8 years

UPDATE 1-Eagle Rock to buy Saskatchewan oil assets for C$34 mln

* To pay C$34 mln in cash and stock for oil properties

* To acquire properties mainly from Bonterra Oil

* Says to raise C$47.4 mln through bought deal

* To sell 361 mln subscription receipts at C$0.15 apiece

Oct 15 (Reuters) - Eagle Rock Exploration Ltd ERX.V agreed to buy oil properties in southwest Saskatchewan for about C$34 million ($33.3 million) in cash and stock, primarily from Bonterra Oil & Gas Ltd BNE.TO.

To fund the deal, Eagle Rock said it plans to raise C$47.4 million by selling about 316 million subscription receipts at 15 Canadian cents apiece to a group of underwriters.

The junior energy explorer said it was acquiring assets located in the Eastend and Dodsland areas of southwest Saskatchewan.

The company will pay a total of C$29.5 million in cash for the properties, of which Bonterra will receive C$24 million.

Eagle Rock will also issue about 30.8 million shares to Bonterra at 15 Canadian cents apiece for its properties, the acquisition of which is expected to close on Nov. 6.

Shares of Eagle Rock were down 1 Canadian cent at 24 Canadian cents Thursday morning on the Toronto Venture Exchange. ($1=1.022 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)

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