Le Lézard
Classified in: Oil industry, Business
Subject: TNM

Strath Resources Announces Transformative Acquisition of Montney Assets


CALGARY, June 14, 2018 /CNW/ -Strath Resources Ltd. ("Strath") is pleased to announce that it has reached an agreement with Paramount Resources Ltd. ("Paramount") for the acquisition of Paramount's assets in the Resthaven/Jayar area of the Kakwa region for total consideration of $340 million.

Strath Resources Ltd. (CNW Group/Strath Resources Ltd.)

Acquisition Highlights

The assets acquired in this transaction directly offset and complement Strath's existing Kakwa property.

Acquisition Structure
The purchase price of $340 million will be paid 50% in cash and 50% in Strath common shares.  The cash component will be entirely funded by Strath's majority owner, Waterous Energy Fund. The remaining $170 million will be funded by the issuance to Paramount of 85 million common shares in Strath at a price of $2.00/share. In addition, Paramount will receive warrants to acquire 8.5 million common shares at an exercise price of $2.00/share. At closing of this transaction, anticipated for early July, Paramount will own 15.6% of Strath.  Strath is pleased to have Jim Riddell, Paramount's President and CEO, join its Board of Directors at closing.

Strath Resources Update
Since acquiring its initial interest in the Kakwa region in January 2017, Strath has drilled 8 Montney horizontal wells, growing production from 5,500 boe/d to 16,000 boe/d (52% liquids). With this transaction Strath's asset base will include:

The increased processing and transportation capacity from the acquired assets positions Strath for further growth and reduces combined operating and transportation costs to approximately $11/boe.  The expanded land base substantially increases Strath's scale, more than doubling Strath's total drill inventory in the Montney, Dunvegan, and Wilrich.  Strath is well positioned to fund its near-term growth from its strong balance sheet (with post-transaction debt to cash flow of 0.3x).

Scotiabank acted as exclusive financial advisor to Strath in connection with this transaction. Blake, Cassels & Graydon LLP acted as legal counsel to Strath, and Stikeman Elliott LLP acted as legal advisor to Waterous Energy Fund.

About Strath
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.

SOURCE Strath Resources Ltd.


These press releases may also interest you

at 09:07
Olympus announced today that it has been awarded a contract for its advanced energy portfolio by Provista Inc. This new, nationwide agreement provides Provista members with negotiated pricing for Olympus® energy products, including the...

at 09:05
Popular, Inc. announced today that it expects to report its financial results for the first quarter ending March 31, 2024, before the market opens on Tuesday, April 23, 2024. Popular will hold a conference call to discuss the financial results the...

at 09:05
Caliber (the "Company" or "CaliberCos Inc.") , a real estate investor, developer, and manager, today announced that it has rescheduled the release of its fourth quarter and full year 2023 financial results for before the open of the market on Monday,...

at 09:05
Pacific Premier Bancorp, Inc. ("Pacific Premier"), the holding company of Pacific Premier Bank, announced today that it will issue its first quarter 2024 financial results before the market opens on Wednesday, April 24, 2024. Pacific Premier will...

at 09:05
Effective today, upon the completion of the acquisition of HSBC Bank Canada ("HSBC Canada") by Royal Bank of Canada ("RBC"), HSBC Global Asset Management (Canada) Limited, HSBC Canada's asset management division, became a wholly-owned subsidiary of...

at 09:00
The Commerce Casino & Hotel, home to the largest poker room in the world, proudly announces an exciting partnership with the richest, most prestigious, and longest-running poker series ? the World Series of Poker® (WSOP®). This collaboration...



News published on and distributed by: