Paramount Resources has sold a chunk of its assets in the Canadian basin for $1.4billion.
Seven Generations acquired 310 net sections of of Paramount’s deep basin oil and gas properties in the Musreau/Kakwa area of west Central Alberta. The deal includes 30,000 barrels of oil equivalent (boe) of daily production, 155 net sections of Montney land and 199 million boe in proved reserves.
Paramount president Jim Riddell said: “While allowing for significant deleveraging of our balance sheet, the unique structure of this transaction provides Paramount shareholders continued exposure to the considerable upside associated with the assets through the company’s significant shareholdings in Seven Generations.
“The pure play Kakwa Montney asset base of Seven Generations provides Paramount shareholders the closest proxy for continued ownership of the disposed assets while significantly reducing our indebtedness.”
Paramount is the second largest shareholder in Seven Generations with a 10% stake.
