Seven Generations Energy has reached a $1.9 billion deal for oil and gas land holdings in the Musreau/Kakwa area. The company will pay Paramount Resources for the northwestern Alberta assets with cash, shares and the assumption of $450 million of its debt.
Seven Gen will also issue 33.5 million shares to Paramount. That means if the deal closes, it will own 10 per cent of the company and become its second largest shareholder. The Canada Pension Plan Investment Board owns the most, at roughly 16.4 per cent.
This is Seven Generation’s first major acquisition since it went public in 2014. The land is adjacent to Seven Generations’ current operations in the Kakwa region, south of Grande Prairie.