Paramount Resources Ltd. agreed to sell some of its Alberta Deep Basin oil and gas properties in the Montney Shale to Seven Generations Energy Ltd. for about C$1.9 billion (US$1.47 billion).

The divestiture is the latest example of struggling oil and gas producers selling off assets in a bid to survive the global crude price rout, which has lasted since mid-June.

The transaction will help Paramount fund its development of the remaining assets in Montney, Duvernay and other resources, Jim Riddell, the company's CEO, said in a statement on July 6.

Paramount said it would receive C$475 million in cash and 33.5 million class A common shares of Seven Generations, which will also assume the company's senior unsecured notes worth about C$584 million due 2023.

Paramount had net debt of about C$1.9 billion as of Dec. 31, according to its filing.

Upon deal closure, Paramount will own a stake of about 10% in the natural gas developer, making it the second-largest shareholder after the Canada Pension Plan Investment Board.

Paramount said billionaire Calgary oilman Clayton Riddell, who holds about 37% of the company's outstanding shares, has agreed to favor the transaction.

The assets, which are located in the Musreau/Kakwa area, had estimated sales volumes of about 30,000 barrels of oil equivalent per day for the three month period ended June 30.

Paramount also agreed in March to sell a natural gas processing complex in the Montney shale formation in Alberta to Pembina Pipeline Corp. for C$556 million (US$428.45 million) in cash.

BMO Capital Markets was Paramount's financial adviser, while Norton Rose Fulbright Canada LLP provided legal counsel.

Peters & Co Ltd. and RBC Capital Markets acted as financial advisers to Seven Generations. Credit Suisse was its strategic adviser.

Paramount's shares closed at C$10.94 on July 6. They have recovered sharply since hitting a 19-year low of C$2.86 in January. (US$1 = 1.2960 Canadian dollars)