BRIEF-Paramount Resources to sell some of its deep basin Musreau/Kakwa assets to Seven Generations for $1.9 bln

Wed Jul 6, 2016 4:08pm EDT
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July 6 (Reuters) - Paramount Resources Ltd :

* Paramount Resources Ltd enters into an agreement to sell 310 net sections of its deep basin musreau/kakwa assets to seven Generations Energy Ltd for total consideration of $1.9 billion

* Seven Generations provided paramount with a $80 million deposit, non-refundable except for certain instances as specified in agreement

* Seven Generations will also assume Paramount's processing and transportation commitments relating to assets

* A canadian chartered bank has committed to provide company with a new $410 million credit facility upon closing of transaction

* New credit facility will amend and replace Paramount's existing credit facility

* New facility will have two tranches, an extendible borrowing base tranche and a one year non-extendible margin tranche

* Consideration is comprised of C$475 million in cash, 33.5 million class a shares of 7G, 7G's assumption of Paramount's senior unsecured notes

* Initial capital spending for pro forma co will be focused on expanding company's existing 4,500 boe/d karr/gold creek development   Continued...