Waterous Energy Fund Combines Strath and Cona to Form Strathcona Resources

Updated 1 year 1 month ago

Waterous Energy Fund has amalgamated two portfolio companies, Cona Resources and Strath Resources, to form Strathcona Resources. Strathcona is the largest wholly private equity-owned, oil-weighted producer in North America, with production of 60,000 boe/d (67% oil and liquids), a 40-year reserve life index, industry-leading full-cycle margins, a base oil decline rate of approximately 10%, and low carbon emissions per barrel. Strathcona is a uniquely positioned producer with a portfolio of condensate and natural gas production to complement its heavy oil operations. Strathcona is 100% owned by WEF and Strathcona employees.

Paramont Resources, who held common shares in Strath, has dissented, asking to be paid a fair value in cash. Paramount's warrants for common shares in Strath have been converted into Strathcona warrants.

Rob Morgan is president and CEO with Michael Makinson as CFO, Tom Everest as VP Development, Nolan Lerner as VP Production, Connie De Ciancio as VP Corporate, and Mark Teasdale as VP Drilling and Completions. Steve Fagan, founder of Strath, will continue to contribute to Strathcona as Vice Chairman. RBC Capital Markets acted as advisor, and ATB Capital Markets provided a fairness opinion to Strath.

Adam Waterouse, Waterous Energy Fund CEO

We believe that the Strath and Cona assets fit perfectly together, with Strath's condensate and natural gas production closely matching Cona's condensate and natural gas operational requirements.