CALGARY, A.B. – Strath Resources Ltd. announced this morning that it will be acquiring Paramount Resources’ assets in the Resthaven/Jayar area of the Kakwa region for $340 million.
Strath says it is buying 201 sections of land from Paramount with multi-zone potential, including 77 sections of Montney rights. The deal also includes 2 million cubic feet/day of processing capacity at the Pembina 8-11 and Cenovus 1-36 Resthaven gas plants, 29 million cubic feet/day of firm service on TCPL, and 4,000 barrels/day of firm liquids transportation. The company says that the acquired assets directly offset and complement its existing Kakwa property.
Since acquiring its initial interest in the Kakwa region in January 2017, Strath says it has drilled 8 Montney horizontal wells, growing production from 5,500 to 16,000 barrels of oil equivalent per day. With the purchase, Strath’s asset base will include 416 sections of land in the Montney, Dunvegan, and Wilrich regions, including 134 sections of Montney rights.