Leucrotta Exploration Inc. announces strategic transaction with Vermilion Energy Inc. and creation of new pure-play Montney company

2 minute read
28 March 2022

On March 28, 2022, Leucrotta Exploration Inc. (TSXV: LXE) announced that it had entered into an arrangement agreement pursuant to which Vermilion Energy Inc. will acquire all of the issued and outstanding securities of Leucrotta for an aggregate consideration of approximately $500 million, excluding value assigned to the newly formed Montney company ("ExploreCo"). The transaction will be accomplished by way of a statutory plan of arrangement under the Business Corporations Act (Alberta).

ExploreCo is anticipated to be a new junior energy company led by Robert Zakresky as President and CEO and certain members of Leucrotta's current management team. ExploreCo will be a growth-oriented entity with assets focused in the highly prolific Montney resource trend in the Two Rivers area of northeast British Columbia.

Gowling WLG is counsel to Leucrotta and ExploreCo in this transaction with a team led by Frank Sur and Greg Peterson, and including Jason Mullins, Andrew Wong and Melanie Condic (corporate); Lesley Kim and Paul Carenza (tax) and Michael Bussman (GST); Lorne Rollheiser and Adriana DaSilva Bellini (regulatory/oil & gas); Max Brunette (employment); and Emily McCartney (litigation/court matters).

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