DEH CHO
A Calgary-based junior energy company says it has acquired Paramount Resources Ltd.'s Cameron Hills assets, located in the southeastern corner of the Deh Cho region.
Calgary-based junior energy company Strategic Oil and Gas Ltd. announced March 4 it has acquired Paramount Resources Ltd.'s Cameron Hills assets. - photo courtesy of Paramount Resources
|
Strategic Oil and Gas Ltd. announced on March 4 a $9-million deal to acquire Paramount's Bistcho Lake, Alta., and Cameron Hills assets.
Paramount had been "breaking even" on three of the producing natural gas wells and four of the oil wells tied into its Cameron Hills area gathering system, an operating officer told News/North last December.
The company had no drilling or exploration work planned for the area this winter, and had not drilled any new wells in Cameron Hills in two years.
Chief Lloyd Chicot, of nearby Ka'a'gee Tu/Kakisa First Nation, said he was aware of Paramount's intentions to sell or close its Cameron Hills operations, and had been discussing financing for the band's water monitoring project.
"When we met with them last time their drilling was tailing off and the oil they were taking out of it was sort of slowly going down. They were getting just enough to make ends meet I think," Chicot said.
Chicot said news that Paramount had sold off its assets was received in a letter.
"I'm not aware of the new players in the field there other than that they sold off their assets. Usually if there's any new drilling they'll let the communities know, so we'll just wait and see what's going to happen," he said.
News/North calls inquiring about Strategic's plans for the area were not returned as of press time.
In a news release, the company called Cameron Hills "a high quality asset" with significant oil and gas development potential.
"This acquisition provides the next stepping stone for adding value to Strategic while adding high quality assets with unrealized upside and repeatable drilling potential, in an area adjacent to our significant northern Alberta land position," stated Gurpreet Sawhney, president and CEO of Strategic. "Infrastructure, and control of infrastructure, are key to successful operations and this acquisition gives Strategic this advantage."
Paramount has entered into a private placement of Strategic shares which will be used in part to fund the asset acquisitions, subject to regulatory approval, the release stated.
Jim Riddell, president of Paramount Resources has agreed to join Strategic's board of directors.
Shares of Calgary-based Strategic Oil and Gas Ltd. remained at $1.22 on Thursday on the TSX-Venture Exchange.
The junior energy company's shares had jumped 13 per cent to $1.28 on the TSX-Venture on Tuesday after announcing the acquisition of Paramount's assets, according to online investing publication Stockhouse.
Shares of Calgary-based Paramount Resources Ltd. closed at $37.59 on Thursday on the Toronto Stock Exchange, down $0.01.
-- with files from Roxanna Thompson
