Vermilion Energy (VET.TO) on Monday said it has agreed to acquire privately held oil and gas company Westbrick Energy for $1.08 billion.

Vermilion said the acquisition adds 50,000 barrels of oil equivalent per day and 1.1 million acres of land in the Deep Basin trend in Alberta.

Last year, Reuters noted, Tourmaline Oil, Vermilion's peer and largest producer in the Deep Basin, bought rival Bonavista Energy for C$1.45 billion, adding 600,000 boepd to its production capacity.

"The strategic acquisition of Westbrick represents a significant step forward in Vermilion's North American high-grading initiative to increase operational scale and enhance full-cycle margins in the liquids-rich Deep Basin," said Dion Hatcher, Vermilion's president and CEO. "The Deep Basin is an area Vermilion has been operating in for nearly three decades and is currently the largest producing asset in the company."

Vermilion said it will fund the acquisition through its undrawn $1.35 billion revolving credit facility.

Closing is expected in the first quarter of 2025.

Vermilion's share price at last look fell more than 4% to $12.20 on the TSX.