Seven Generations $1.9 billion acquisition of Paramount assets

Overview:

• Natural gas producer Seven Generations has agreed to buy Montney liquids-rich natural gas assets from Paramount Energy for $1.9 billion in cash.
• The deal gives Seven Generations an additional 30,000 barrels of oil equivalent (boe) of daily production, 155 net sections of Montney land and 199 million boe in proved reserves.
• The Paramount divestiture is a latest example of an oil and gas producer selling assets to survive the troubles in the oil and gas sector. 
• The deal will see Paramount receive 475 million in cash and 33.5 million of class A common shares of Seven Generations (a 10% stake) as well as offloading senior unsecured notes worth $584 million due 2023.
• Paramount will become the second largest shareholder in Seven Generations after the Canada Pension Plan Investment Board. 
• Norton Rose Fulbright Canada is advising Paramount Energy 

James Wilson - Journalist - North America and the Caribbean