[Editor's note: This story was updated at 9:10 a.m. CT April 16.]

Oil and gas producer Vermilion Energy Inc. (NYSE: VET) said April 16 it would buy rival Spartan Energy Corp. in a deal valued at C$1.40 billion (US$1.11 billion), which will raise its light oil production in Canada and U.S.

Canadian light oil, which is easier to extract and refine, is cheaper to produce than northern Alberta's oil sands crude, but is not as fast-growing as the booming Permian shale play.

Spartan Energy, which has about 480,000 acres of light oil producing assets in the Canadian provinces of Saskatchewan, Alberta and Manitoba, is expected to have 23,000 barrels of oil equivalent per day (boe/d) this year.

Calgary, Alberta-based Vermilion had forecast 2018 output of 75,000 boe/d to 77,500 boe/d.

Vermilion Energy's shares were trading down nearly 3%, while Spartan Energy's shares were flat.

Vermilion said the deal will add to its production, fund flows from operations and reserves.

Vermilion also has operations in Europe and Australia. It entered southeast Saskatchewan, where most of Spartan's assets are located, when it bought Elkhorn Resources in 2014.

Earlier this year, Vermilion said it would by a privately-held producer in the same region for C$90.8 million.

As part of the Spartan deal, Vermilion will offer C$1.23 billion of its own shares and assume C$175 million of Spartan's debt.

Spartan shareholders will get 0.1476 of a Vermilion share for each share they own, Vermilion said in a statement. (US$1 = C$1.2605)