CALGARY, May 1, 2017 /CNW/ - Paramount Resources Ltd.
(TSX:POU) ("Paramount" or the "Company") is pleased to announce
that it has agreed to sell its oil and gas properties in the
Valhalla area of Alberta (the "Assets") for cash consideration
of approximately $150 million,
subject to customary post-closing adjustments.
The Assets encompass approximately 94 (74 net) sections of land
and had estimated sales volumes of approximately 1,400 Boe/d for
the three-month period ended March
31, 2017.
Closing of the transaction is expected to occur in May 2017, and is subject to the purchaser
receiving the approval of the Alberta Energy Regulator for the
transfer to it of the Assets. The purchase price has been
deposited with Paramount's legal counsel and will be released upon
satisfaction of this condition.
About Paramount
Paramount is an independent, publicly traded, Canadian energy
company that explores and develops unconventional and conventional
petroleum and natural gas prospects, including long-term
unconventional exploration and pre-development projects, and holds
a portfolio of investments in other entities. The Company's
principal properties are primarily located in Alberta and British
Columbia. Paramount's Class A common shares are listed on
the Toronto Stock Exchange under the symbol "POU".
Advisories
Forward Looking Information
Certain statements in this news release constitute
forward-looking information under applicable securities
legislation. Forward-looking information typically contains
statements with words suggesting future outcomes or an outlook.
Forward-looking information in this news release includes, but is
not limited to, the anticipated closing date of the
transaction. The forward-looking information in this news
release is based on a number of assumptions which may prove to be
incorrect. The forward-looking information in this news
release is also based on expectations, estimates and projections
that involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by
Paramount and described in the forward-looking
information. See the section titled "RISK FACTORS" in
Paramount's current annual information form for a description of
the risks applicable to Paramount's business and the
forward-looking information herein. The forward-looking
information contained in this news release is made as of the date
hereof and, except as required by applicable securities law,
Paramount undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise.
Oil and Gas Measures
This news release contains disclosures expressed in
"Boe/d". Natural gas equivalency volumes have been derived
using the ratio of six thousand cubic feet of natural gas to one
barrel of oil. Equivalency measures may be misleading, particularly
if used in isolation. A conversion ratio of six thousand cubic feet
of natural gas to one barrel of oil is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the well
head. During the three months ended March 31, 2017, the value ratio between crude oil
and natural gas was approximately 23:1. This value ratio is
significantly different from the energy equivalency ratio of 6:1.
Using a 6:1 ratio would be misleading as an indication of
value.
SOURCE Paramount Resources Ltd.