Vermilion Energy (VET) said Monday it has agreed to acquire Westbrick Energy for $1.08 billion in cash.

Under the terms of the agreement, Vermilion will acquire all shares of the privately held oil and gas company, which operates in Alberta's Deep Basin, Vermillion said.

The company said the acquisition, expected to close in Q1, will be funded through its $1.35 billion revolving credit facility.

The acquisition brings 50,000 barrels per day of oil equivalent and approximately 1.1 million acres of land upon which Vermilion has identified over 700 drilling locations, the company said.

Vermilion said its debt reduction efforts over the past five years "created the balance sheet capacity to execute this long-duration, strategic acquisition."