New buy: Paramount Energy
Paramount expands Alberta assets
Paramount Energy Trust said it agreed to buy oil and natural gas assets in the Edson area of west central Alberta for C$126 million ($123 million) from a Canadian intermediate exploration and production company, to strengthen its footprint in the region.
The trust said it will acquire 10.1 million cubic feet of gas equivalent per day, as well as extensive gathering and processing infrastructure and undeveloped lands in a multi-zone part of the Western Canadian Sedimentary basin, Reuters reported.
The acquisition will be funded through a combination of bank debt and an issue of subscription receipts, Paramount said in a statement.
The trust said it will raise C$50 million in a bought deal, by selling 10.5 million subscription receipts at C$4.75 per receipt to a syndicate of underwriters led by BMO Capital Markets. Each subscription receipt represents the right to receive one trust unit on the closing of the acquisition, without payment of any additional consideration, the trust said.
The underwriters will have an over-allotment option to buy up to an additional C$7.5 million of subscription receipts on the same terms.
The offering is expected to close on or about 30 March.
