July 6, 2016 / 8:02 PM / in a year

BRIEF-Seven Generations to buy neighbouring montney assets for about $1.9 bln

July 6 (Reuters) - Seven Generations To Significantly Expand High

* Deal consideration consists of cash, 7g shares and assumption of a portion of paramount’s debt

* Expect net debt to cash flow ratio to be approximately neutral at end of 2016

* Expect to have sufficient cash and funds from operations to finance anticipated 2017 capital investments

* Expects net debt to cash flow ratio to be approximately neutral at end of 2016

* 2016 capital investment is planned at $1.05 billion to $1.1 billion, up from original range of $900 million to $950 million

* Q2 2016 production is estimated at more than 115,000 boe/d

* Growth kakwa river project with agreement to acquire neighbouring montney assets for about $1.9 billion

* Transaction adds 155 net sections of montney land, about 30,000 boe/d of production

* Nest consolidation to boost 2016 production guidance to 120,000 - 125,000 boe/d

* Transaction expects it to be accretive within first year of ownership on cash flow, production, reserves per share basis

* Concurrent with transaction, entered into $650 million bought deal financing

* Proceeds from bought deal financing will be used to fund cash portion of acquisition

* On track to surpass original 2016 production guidance of 100,000 to 110,000 boe/d Source text for Eikon: Further company coverage: (Bengaluru Newsroom; +1 646 223 8780)

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