November 14, 2024 (Investorideas.com Newswire) Investorideas.com (www.investorideas.com), a go-to platform for big investing ideas for traders, including oil and gas stocks reports on trading for Paramount Resources Ltd. (TSX: POU).
The stock is trending today on news and is currently trading at $31.90, gaining 4.62, up 16.95% as of this report on volume of over 1.7 Million shares.,
Paramount is an independent, publicly traded, liquids-rich natural gas focused Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas, including longer-term strategic exploration and pre-development plays, and holds a portfolio of investments in other entities.
Paramount just announced that it has entered into a purchase and sale agreement with Ovintiv Inc. (NYSE: OVV) (TSX: OVV) and one of its wholly-owned subsidiaries pursuant to which Ovintiv will acquire Paramount's Karr, Wapiti and Zama properties (the "Assets") for $3.325 billion in cash plus certain Horn River Basin properties of Ovintiv (the "Transaction").
The Assets include approximately 170 net sections of Montney lands with 114 MMBoe of proved developed producing reserves, 270 MMBoe of proved reserves and 523 MMBoe of proved plus probable reserves as at December 31, 2023. (1) The Assets also include the related gathering systems and other field infrastructure. Ovintiv will assume Paramount's processing and transportation commitments relating to the Assets on closing of the Transaction. Third quarter 2024 sales volumes and netback for the Assets were approximately 67,600 Boe/d (50% liquids) and $150 million, respectively. (2)(3)
The Horn River Basin properties to be received by the Company as part of the Transaction include Ovintiv's 50% operated interest within the current joint venture with Paramount at the Two Island Lake field and a 50% operated interest at the Kiwigana field. The Two Island Lake field and Ovintiv's interest in the Kiwigana field were producing over 40 MMcf/d of natural gas prior to being shut-in in March 2024.
"We believe this transaction provides an opportunity to realize compelling value for the Assets while retaining a significant inventory of growth opportunities across our land base", said Jim Riddell, President and Chief Executive Officer of Paramount. "The transaction demonstrates Paramount's ability to provide long-term value creation for its shareholders through the low-cost capture, delineation and organic development of early-stage assets, culminating in the realization of attractive value via strategic divestitures. On completion of the transaction, we will be well positioned to continue the development of our high-growth Duvernay assets, advance a number of our exciting early-stage assets and capitalize on new opportunities. We intend to use a portion of the proceeds of the transaction to provide a meaningful return to our shareholders. We expect to disclose further details of our shareholder return strategy in due course."
Recent news:
https://ca.finance.yahoo.com/news/paramount-resources-ltd-announces-3-110000958.html
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