05:27 PM EDT, 06/10/2024 (MT Newswires) -- Advantage Energy ( AAVVF ) ,on Monday said it agreed to acquire oil and gas assets in the Charlie Lake and Montney fields in Western Canada from a private seller for $450 million and will pay, in part, for the purchase with a bought-deal offering of subscription receipts.

The Western Canadian oil and gas producer, said the assets will boost its production by 14,100 barrels of oil equivalent per day and will be accretive to adjusted funds flow and free funds flow.

"The acquisition capitalizes on a rare opportunity to consolidate a high-quality, liquids-weighted asset that is contiguous with our existing core areas and complementary to our dominant infrastructure platform. The Assets include more than ten years of top-tier Charlie Lake oil inventory that compares favorably with Advantage's top-tier Wembley oil assets," it said in a release.

Advantage said it is selling an underwriting syndicate $65 million of subscription receipts and $125 million of extendible convertible unsecured subordinated debentures to fund the purchase. It also received commitments from a banking syndicate for a $650-million revolving credit facility.

The company is raising its 2024 guidance with the acquisition. It now expects to average output of around 73,000 boepd this year, up from its prior target of 65,000 to 68,000 boepd. It is also raising its capital-spending estimate to between $280 million and $310 million from its original range of $220 million to $250 million.

Advantage shares closed up $0.09 to $11.56 on the Toronto Stock Exchange.