(Changes deal value to Canadian dollar after company's
June 12 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,
The deal includes the assumption of about $115 million in
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
The boards of directors of both companies have approved the
Long Run shares closed at C$5.63 on the Toronto Stock
Exchange on Thursday, while shares of Crocotta Energy closed at
($1 = 1.0852 Canadian Dollars)
(Reporting By Narottam Medhora in Bangalore; Editing by Simon