July 6, 2018 - 10:24 AM EDT
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Strath Resources Closes Transformative Acquisition of Montney Assets

Canada NewsWire

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. (CNW Group/Strath Resources Ltd.)

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:

  • 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)

SOURCE Strath Resources Ltd.

View original content with multimedia: http://www.newswire.ca/en/releases/archive/July2018/06/c5773.html

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 [email protected] CNW Group 2018


Source: Canada Newswire (July 6, 2018 - 10:24 AM EDT)

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