Strath acquiring Paramount Kakwa assets

Privately owned Strath Resources Ltd. has agreed to acquire producing assets in the Kakwa region of the Montney natural gas and liquids play in Alberta from Paramount Resources Ltd. Both companies are based in Calgary.

The $340-million (Can.) deal will be half cash and half Strath common shares.

Strath will acquire 5,300 boe/d of production, of which 36% is liquids; 152 net sections of land with multizone potential; 62 MMcfd of owned processing capacity at the Pembina 8-11 and Cenovus 1-36 Resthaven gas plants; and firm transportation service for 29 MMcfd of natural gas and 4,000 b/d of liquids.

At closing Paramount will own 15.6% of Strath, which is backed by Waterous Energy Fund.

The deal will increase production by Strath, which concentrates on the Kakwa region, to 21,300 boe/d, of which 48% will be liquids.