2011-06-15-2011-04-08-2011-05-31

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
180MM
Description

Acquired company with 132,000 gross undeveloped acres in Alberta, gaining 2,925 BOE/d, 18.6 MMBOE 2P.

Paramount Resources Ltd., Calgary, (Toronto: POU) has closed its acquisition ofProspEx Resources Ltd., Calgary, (Toronto: PSX) for C$180 million in cash, stock and assumed debt.

Paramount paid either 0.07162 Paramount share or C$2.40 cash per ProspEx share. The deal includes assumption of approximately C$40 million in debt.

ProspEx's assets include natural gas assets on 132,000 gross undeveloped acres (104,000 net) with significant multi-zone and horizontal drilling potential in several zones from the Triassic Montney formations up to the Late Cretaceous Cardium formations in Alberta, including the Falher C zone in the Kakwa area.

The assets increase Paramount's Deep Basin land holdings in the Kakwa, Elmworth, and Wapiti areas of Alberta.

Production is expected to be 2,925 barrels of oil equivalent per day in fiscal year 2011, and 3,860 barrels equivalent per day in 2012. Proved and probable reserves as of Dec. 31 were 18.6 million barrels of oil equivalent.

Upside includes more than 47 gross (more than 30 net) estimated risked drilling locations.

Cormark Securities Inc. was financial advisor to ProspEx. Peters & Co. Ltd. was financial advisor to Paramount.