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Long Run is led by former Penn West Petroleum chairman Bill Andrew.
Long Run is led by former Penn West Petroleum chairman Bill Andrew.
(Todd Korol/The Globe and Mail)

Long Run Exploration buying Crocotta Energy in all-stock deal

Long Run Exploration Ltd. is buying Crocotta Energy Inc. in a $242-million all-stock deal that extends a recent flurry of acquisitions in the oil patch.

As part of the deal, Crocotta is spinning off its Montney liquids-rich gas assets as a new exploration company.

Long Run, which recently closed an acquisition of Alberta Deep Basin and Edson Pine Creek Cardium assets, said the deal will add production of 7,500 barrels of oil equivalent a day in the latter region. It now expects 2014 production of 32,100 barrels of oil equivalent a day and 2015 output of 43,200 barrels a day.