October 20, 2009 / 1:53 PM / 9 years ago

UPDATE 1-Glamis announces acquisitions, raises outlook

* Plans to finance deals partly through bought deal

* Says deals will boost its anticipated 2010 cash flow

TORONTO, Oct 20 (Reuters) - Canadian oil and gas junior Glamis Resources Ltd GLMa.V said on Tuesday it has acquired privately held Connaught Energy Ltd and an interest in a partnership that holds oil and gas assets in Saskatchewan in a cash and share deal that it said will raise its output and reserves.

Glamis said the acquisitions, coupled with its own successful drill results, will by the end of 2009, boost its production to about 5,750 barrels of oil equivalent a day from 4,150 barrels of oil equivalent a day. The company said the acquisitions will also boost its 2010 cash flow.

The company said total consideration for the two deals is C$108 million ($104 million) in cash and 88.3 million Glamis shares.

Glamis is financing the acquisitions through a bought deal with a syndicate of underwriters, co-led by GMP Securities, Macquarie Capital Markets Canada and FirstEnergy Capital Corp.

Glamis hopes to raise gross proceeds of C$90 million, through the financing agreement.

Shares of the company fell 4 Canadian cents to C$1.67 in early trade on the TSX Venture Exchange.

$1=$1.04 Canadian Reporting by Euan Rocha; editing by Peter Galloway

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