CALGARY - Terra Energy Corp. (TSXV:TT) has agreed to pay $76.6 million to acquire oil and gas properties in northwestern Alberta and northeastern British Columbia that will increase the company's output by 40 per cent.
The properties currently produce the equivalent of between 2,200 and 2,300 barrels of oil per day, increasing Terra's daily production to more than 8,000 oil-equivalent barrels per day.
The acquisition will be financed using a combination of proceeds from a concurrent $10.15-million bought-deal equity financing which could be increased to $20.3 million, together with Terra Energy's existing credit facility.
The syndicate will purchase at least seven million subscription receipts at $1.45 each. The receipts will be exchangable for equity units that each contain one common share and a half purchase warrant.
The financing is expected to close July 7 and the property acquisition is expected to close July 15.
Terra shares fell five cents to close at $1.40 on the TSX Venture Exchange.