CALGARY, AB, Aug. 17, 2020 /CNW/ - Paramount Resources Ltd. ("Paramount" or the "Company") (TSX: POU) is providing an update concerning its investment in Strath Resources Ltd. As announced by Waterous Energy Fund, Strath amalgamated with Cona Resources Ltd. on August 14, 2020 to form Strathcona Resources Ltd. Prior to the amalgamation, Paramount held common shares of Strath and warrants to acquire common shares of Strath that it received in connection with the July 2018 disposition of its Resthaven/Jayar assets to Strath. In Paramount's view, neither the amalgamation nor the process followed in connection with the approval of the amalgamation were in the best interests of Strath and its shareholders. Accordingly, Paramount exercised its right of dissent under the Business Corporations Act (Alberta) with respect to its common shares of Strath. Pursuant to the dissent right, Paramount is entitled to be paid in cash the fair value of its shares of Strath with the value to be determined in accordance with the dissent process. Paramount's warrants to acquire common shares of Strath were converted into warrants to acquire common shares of Strathcona on completion of the amalgamation.
Paramount is an independent, publicly traded, liquids-focused Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas reserves and resources, including longer-term strategic exploration and pre-development plays, and holds a portfolio of investments in other entities. The Company's principal properties are located in Alberta and British Columbia. Paramount's Class A common shares are listed on the Toronto Stock Exchange under the symbol "POU".
SOURCE Paramount Resources Ltd.