Paramount Resources Ltd. has entered into a purchase and sale agreement with Strath Resources Ltd. pursuant to which Strath will acquire Paramount’s oil and gas properties and related infrastructure at Resthaven/Jayar in the Kakwa region in Alberta for $340 million.
Upon closing, Paramount will hold a 16-percent equity interest in Strath, and Jim Riddell, Paramount’s president and CEO, will join Strath’s board of directors.
The assets include 201 (152 net) sections of land, with proved reserves of approximately 6.3 MMBoe (95-percent developed producing) and proved-plus-probable reserves of approximately 8.1 MMBoe (94-percent developed producing), as of Dec. 31. Sales volumes from these lands were approximately 5,300 Boe/d (36 percent-liquids) in April on a restricted basis.
For more information, visit www. strathresources.com or www.paramountres.com.