Calgary-based Kroes said the companies will merge "as equals" all of their businesses and operations.

Kroes is a junior oil and gas firm with non-operated production of approximately 100 barrels of oil equivalent per day from its shallow gas interests in central Alberta.

Vecta began operations in Alberta in 2005 with financial and technical support from Vecta Oil & Gas Ltd. of Dallas, Texas, which develops seismic technology to evaluate prospective exploratory lands.

Vecta has acquired prospective lands in the Brewster and Gilby regions of west central Alberta, has participated in one well, and has received a license to use the so-called "Shear Wave" seismic technology in the Western Canadian Sedimentary Basin.

In the takeover is successful, current Insiders of Kroes will hold approximately 14.6 per cent of Kroes""s shares. Vecta Holdings, ULC, will buy a maximum of 19.9 per cent of Kroes"" shares.

Kroes will continue to be listed on the TSX Venture Exchange.

Prior to Friday""s announcement, Kroes shares at 7.5 cents, up seven per cent.

PIN/Oilweek.Com