Canadian oil and gas company Terra Energy Corp. said it will buy privately held Tecton Energy Canada ULC for C$8 million ($6.55 million) in cash and stock to further solidify its position in the Fort St. John area of British Columbia.

Terra Energy said Tecton Energy's assets consist primarily of 140 gross sections of petroleum and natural gas mineral rights located in the immediate vicinity of Fort St. John.

Terra Energy will pay C$4 million in cash and issue C$4 million in shares at C$1.55 each.

Terra Energy said the deal is scheduled to close in late May.

Terra Energy shares were down 25 Canadian cents at C$1.25 in the morning trade on the Toronto Venture Exchange.

($1=1.221 Canadian Dollar) (Reporting by R. Manikandan in Bangalore; Editing by Jarshad Kakkrakandy)