Calgary-based energy explorer and producer Strath Resources Ltd has closed its acquisition of oil and gas properties and related infrastructure in the Resthaven/Jayar area of Alberta’s Kakwa region.
The seller was Paramount Resources Ltd (TSX: POU).
The cash-and-stock deal, announced in June, had a total consideration of $340 million. The cash portion, totalling $170 million, was funded by Strath’s majority owner, Canadian energy private equity firm Waterous Energy Fund.
Last week, Waterous said it closed its inaugural fund, Waterous Energy Fund LP, raising $1.4 billion.
Strath Resources Closes Transformative Acquisition of Montney Assets
CALGARY, July 6, 2018 /CNW/ – Strath Resources Ltd. (“Strath”) is pleased to announce that it has closed the previously announced acquisition from Paramount Resources Ltd. (“Paramount”) of its assets in the Resthaven/Jayar area of the Kakwa region for total consideration of $340 million, paid 50% in cash and 50% in Strath common shares. The cash component was funded through an equity investment in Strath by Strath’s majority owner, Waterous Energy Fund and the remaining $170 million was funded by the issuance to Paramount of 85 million common shares in Strath and 10-year warrants to acquire 8.5 million Strath common shares. As a result, Paramount owns 15.6% of Strath and Jim Riddell, Paramount’s President and CEO, has joined Strath’s Board of Directors.
Strath Resources Ltd. is a private intermediate exploration and production company founded in 2017 to develop condensate-rich natural gas in the Kakwa region of NW Alberta. Strath’s asset base, pro forma the acquisition, includes:
416 sections of land with proven development potential in the Montney, Dunvegan, and Wilrich formations
134 sections of Montney rights
Firm processing capacity of 117 mmcf/d
129 mmcf/d of firm transportation capacity on TCPL, and
Current production of approximately 21,300 boe/d (48% liquids)
For further information: Further information can be found on the company’s website at www.strathresources.com or by contacting Steve Fagan, President and CEO of Strath, at 587-393-7286 or by email at firstname.lastname@example.org.