Vermilion Energy closes acquisition of Leucrotta Exploration

On May 31, 2022, Vermilion Energy Inc. ("Vermilion") announced the closing of its previously announced acquisition of Leucrotta Exploration Inc. ("Leucrotta") for a net cash purchase price of C$477 million. The primary asset acquired by Vermilion was Leucrotta’s Mica property, comprised of 81,000 gross (77,000 net) contiguous acres of Montney mineral rights in the Peace River Arch straddling the Alberta and British Columbia borders.

Under the terms of the arrangement agreement, dated March 28, 2022, Vermilion acquired all of the issued and outstanding shares of Leucrotta (other than the approximately 2.9% already held by Vermilion) for cash consideration of C$1.73 per share and approximately C$0.76 per "flow-though" purchase warrant.

As part of the arrangement, a portion of Leucrotta’s land base and approximately C$43.5 million of cash was transferred to Coelacanth Energy Inc. ("Coelacanth"), a new company managed by the previous Leucrotta team. Holders of Leucrotta shares also received one common share and 0.1917 common share purchase warrants of Coelacanth for each share held. Additionally, under the arrangement, Vermilion acquired an approximate 12.5% equity stake in Coelacanth for approximately C$14 million and obtained board representation and other customary investor rights.

Further information can be found on Canada Newswire’s website.

Vermilion is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing assets in North America, Europe and Australia.