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.
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. Strath’s asset base, pro forma the acquisition, includes: