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Paramount Resources Ltd. Announces the Closing of a Grant by Cavalier Energy of a Royalty for $100 million, the Sale of 5.0 million Seven Generations Shares for $150 million and a Dividend of its Remaining 3.8 million Seven Generations Shares
Paramount Resources Ltd. Announces the Closing of a Grant by Cavalier Energy of a Royalty ...
About this update from Paramount Resources Ltd. Class A
[{"type":"text","content":"\n\n\n\nParamount Resources Ltd. Announces the Closing of a Grant by Cavalier Energy of a Royalty for $100 million, the Sale of 5.0 million Seven Generations Shares for $150 million and a Dividend of its Remaining 3.8 million Seven Generations Shares\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntaj{\nTEXT-ALIGN: JUSTIFY\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Dec. 16, 2016\n\n\n\nCALGARY, Dec. 16, 2016 /CNW/ -\n\nCavalier Royalty\n\nParamount Resources Ltd. (\"Paramount\" or the \"Company\") (TSX:POU) and Cavalier Energy (\"Cavalier\"), Paramount's wholly-owned subsidiary, jointly announced today that Cavalier has closed a transaction pursuant to which it has granted a royalty (the \"Cavalier Royalty\") to an unrelated third party on its oil sands properties (the \"Royalty Lands\") for cash consideration of $100 million.  \n\nThe Cavalier Royalty will be calculated on a sliding scale based on the prevailing monthly Western Canadian Select (\"WCS\") price.  Production will not be subject to any royalty when the WCS price is below US$50 per barrel.  At a WCS price of US$50 per barrel, the rate will be 2% and the rate will increase linearly to a maximum of 20% at a WCS price of US$140 per barrel.  The Cavalier Royalty will be payable based on Cavalier's realized bitumen price, net of diluent, transportation and storage costs.  The Cavalier Royalty is secured by a lien over the Royalty Lands.  \n\nThe royalty agreement does not impose any development commitments on Cavalier in respect of its Hoole project or any of the other Royalty Lands, nor does it impose any terms or conditions on the use of the consideration paid for the Cavalier Royalty.\n\nGMP FirstEnergy acted as an advisor to Cavalier in respect of the Cavalier Royalty and RBC Capital Markets acted as a strategic advisor to the third party purchaser of the Cavalier Royalty.\n\nSale of 5.0 Million Seven Generations Shares\n\nParamount also announces that it has sold 5.0 million of its Seven Generations Energy Ltd. common shares (\"7G Shares\") in a private bought deal transaction for gros...