Privately held Strath Resources is doubling its Montney position with a $340 million purchase from Paramount Resources.
Strath is majority owned by Waterous Energy Fund. It entered the Montney play in January 2017 and reports current production of about 16,000 boe/d, 52 per cent of which is liquids.
The assets from Paramount are in the same region as Strath’s existing operations, the Kakwa area of northwest Alberta. The deal includes 5,300 boe/d of current production (36 percent liquids), 201 sections of land with multi-zone potential, 62 mmcf/d of owned processing capacity at the Pembina 8-11 and Cenovus 1-36 Resthaven gas plants, 29 mmcf/d of firm service on TCPL and 4,000 bbls/d of firm liquids transportation.
At the close of the transaction, anticipated in early July, Paramount will own 15.6 percent of Strath. Paramount CEO Jim Riddell will also join Strath’s board of directors.
Paramount has been active in upstream M&A in recent years, having last summer purchased the assets of Apache Canada for $459 million and executed an all-share merger with Trilogy Energy. In 2016, the company sold $1.9 billion in Montney assets to Seven Generations Energy.
Paramount said the deal with Strath allows it to capture the upside of the lands while it focuses on its core Montney and Duvernay assets.