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)