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UPDATE 1-Seven Generations to buy some Deep Basin assets from Paramount

Published 2016-07-06, 04:48 p/m
UPDATE 1-Seven Generations to buy some Deep Basin assets from Paramount
CSGN
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NG
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POU
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PPL
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VII
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(Adds details, shares)
July 6 (Reuters) - Canadian natural gas developer Seven
Generations Energy Ltd VII.TO said it would buy some of
Paramount Resources Ltd's POU.TO Deep Basin oil and gas
properties in west Central Alberta for about C$1.9 billion
($1.47 billion), including debt.
Paramount said it would receive C$475 million in cash and
33.5 million class A common shares of Seven Generations.

Seven Generations will also assume Paramount's senior
unsecured notes worth about C$584 million due 2023.
The assets, which are located in the Musreau/Kakwa area, had
estimated sales volumes of about 30,000 barrels of oil
equivalent per day for the three month period ended June 30.

Paramount said billionaire Calgary oilman Clayton Riddell,
who holds about 37 percent of Paramount's outstanding shares,
has agreed to favor the transaction.
Paramount agreed in March to sell a natural gas processing
complex in the Montney shale formation in Alberta to Pembina
Pipeline Corp PPL.TO for C$556 million ($428.45 million) in
cash.
BMO Capital Markets was Paramount Resources' financial
adviser, while Norton Rose Fulbright Canada LLP provided legal
counsel.
Peters & Co Ltd and RBC Capital Markets acted as financial
advisers to Seven Generations. Credit Suisse (SIX:CSGN) was its strategic
adviser.
Paramount's shares closed at C$10.94 on Wednesday,
recovering sharply from a 19-year low of C$2.86 that they hit in
January.
($1 = 1.2960 Canadian dollars)

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