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Here’s how Paramount Resource’s disposition compares to other mega-Montney deals

July 6, 2016 3:01 PM
BOE Report Staff

Paramount Resources announced disposition of Montney assets to Seven Generations Energy for $1.9 billion makes it the largest Montney asset sale this year and one of the largest ever.

The transaction metrics are fairly attractive for Paramount Rescources when comparing to other large-scale ($100 million+) Montney transactions in the past 3 years on a $/BOE/D metric:

The $63,333/BOE/D is quite impressive considering the severe price drop in the past 18 months. As mentioned earlier in the BOE Report, the average selling price for Montney assets in the past year is ~$54,000/BOE/D, so Paramount’s deal is 17% above average. They also fetched approximately $9,577/acre which is a high multiple compared to most Montney deals which are typically priced in the $3,000-$5,000/acre range.

See all the latest Montney news and M&A transactions in the BOE Report Montney Play Page.

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