Seven Generations Boosting Montney Shale NatGas Focus in C$1.9B Deal With Paramount

摘要

Calgary-based Seven Generations Ltd. (7G) on Wednesday struck a C$1.9 billion ($1.47 billion) deal to expand its natural gas opportunities in the Montney Shale in a transaction that also would bring aboard cross-town rival Paramount Resources Ltd. as a 10% stakeholder. The agreement would boost the pure play Montney operator’s proved reserves by 199 million boe (47%), add 30,000 boe/d of current production and increase net sections of land by 155. Proved plus probable reserves would increase by more than onethird to 1,152 million boe/d from 859 million boe/d. The addition of Paramount’s gas capacity of 245 MMcf/d would increase 7G’s capacity by 48% to 755 MMcf/d. Long-term gas marketing and takeaway capacity are set to jump 40% to 847 MMcf/d from 607 MMcf/d.