Deal: Seven Generations pays C$1.9bn for Montney

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[Context: On July 6, Seven Generations Energy, backed by ARC Financial, Azimuth Capital Management, Canada Pension Plan Investment Board, announced a C$1.9 billion transaction with Paramount Resources Ltd. (TSX:POU) . Sellside advisors: [FA] BMO Capital Markets ; [ATT] Norton Rose Fulbright. Buyside: [FA] Credit Suisse; Peters & Co. Limited; RBC Capital Markets. Figures are in Canadian dollars. Seven Generations was formerly backed by Natural Gas Partners.]

Seven Generations to Significantly Expand High-Growth Kakwa River Project With Agreement to Acquire Neighbouring Montney Assets for About C$1.9 Billion

  • 7G launches concurrent $650 million bought deal common share offering of subscription receipts to partially fund acquisition
  • Bolt-on acquisition to expand 7G’s prolific Nest lands and proved reserves by 47 percent
  • Transaction adds 155 net sections of Montney land, about 30,000 boe/d of production
  • 7G’s second quarter 2016 production estimated at more than 115,000 boe/d
  • Nest consolidation to boost 2016 production guidance to 120,000 – 125,000 boe/d
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