Canada’s Paramount Resources Ltd. completed its Musreau/Kakwa asset sale to Seven Generations Energy Ltd. (7G) for about CA$2.1 billion, the company said Aug. 18. The natural gas assets are in the liquids-rich Montney area in northwest Alberta, 7G said in a separate press release that day.
The total amount included about CA$0.5 billion in cash after adjustments, about CA$1 billion in 7G shares and about CA$0.6 billion of debt assumed by 7G.
Paramount Resources also said that with a portion of the cash proceeds from the Musreau/Kakwa sale, the remaining amount of senior notes due 2019—roughly CA$166.5 million—was redeemed.
In connection with the sale, Paramount Resources repaid all outstanding debts—about CA$230 million—under its prior CA$350 million revolving credit facility.
The company also said that all of the Fox Drilling debt will be retired, and that a new CA$100 million secured revolving credit facility was entered into with a Canadian chartered bank.
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