CALGARY, AB, July 2, 2025/ PRNewswire/ – Strathcona Resources Ltd. (” Strathcona” or the “Business”) SCR is delighted to verify the closing of its formerly revealed Montney possession sales, for overall worth of roughly $ 2.86 billion consisting of closing modifications( 1 ) The sale of its Groundbirch possession closed on June 1, 2025, and the sale of its Kakwa and Grande Grassy Field properties closed today.
Strathcona is now a pure-play heavy oil business producing roughly 120 Mbbls/ d (100% oil) with a 50-year 2P reserves life index and prepares to grow to 195 Mbbls/ d by 2031. In addition, Strathcona presently has roughly $ 200 million in favorable net money and valuable securities( 2 ) after subtracting all financial obligation, inclusive of roughly 4.6 million shares in Tourmaline Oil Corp. TOU and 23.4 million shares in MEG Energy Corp. MEG (” MEG”).
MEG Strategic Alternatives Process Update
While Strathcona is delighted that the board of directors of MEG (the “MEG Board”) has actually chosen to pursue a tactical options procedure, it is dissatisfied that in the 9 weeks given that Strathcona sent its initial composed deal to the MEG Board on April 28, 2025, the MEG Board has actually decreased to have any discussion with Strathcona to find out more about its deal, Strathcona’s service, or if an alternative structure might be consented to.
The MEG Board’s habits does not match feedback Strathcona has actually gotten to date from MEG investors, who have actually shown they want to see the MEG Board engage with Strathcona to see if a win-win result can be grabbed both Strathcona and MEG investors. Strathcona stays eager to engage with the MEG Board, consisting of as part of its tactical options procedure. Additionally, Strathcona stays dedicated to continuing its direct discussion with MEG investors in advance of the September 15 tender due date for its deal.
About Strathcona
Strathcona is among The United States and Canada’s fastest growing oil and gas manufacturers with operations concentrated on thermal oil and improved oil healing. Strathcona is constructed on an ingenious technique to development attained through the combination and advancement of long-life oil properties. Strathcona’s typical shares (sign SCR) are noted on the Toronto Stock Market (TSX).
To find out more about Strathcona, go to www.strathconaresources.com.
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( 1 ) |
Consists of roughly $20 countless closing and other modifications in Strathcona’s favor, relative to Strathcona’s Might 14, 2025 news release, which divulged overall worth of Montney deals of $2.84 billion. |
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( 2 ) |
A non-GAAP monetary procedure which does not have a standardized significance recommended by the Accounting Standards (as specified herein). See the “ Non-GAAP Financial Procedures and Ratios” area of this news release. |
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Deal Details
Strathcona’s provide to obtain all of the provided and impressive typical shares of MEG (the “ MEG Shares“) not currently owned by Strathcona (the “ Deal“) supplies that each holder whose MEG Shares are used up in the Deal will be entitled to get 0.62 of a typical share in the capital of Strathcona plus C$ 4.10 per MEG Share in money. The Deal will be open for approval till 5:00 p.m. Mountain Time on Monday, September 15, 2025.
More info relating to Strathcona and the Deal can be discovered on Strathcona’s site: https://www.strathconaresources.com/meg-energy-offer/
Investors who have concerns or need support in transferring MEG Shares to the Deal must call the Details Representative, Laurel Hill Advisory Group, by e-mail at assistance@laurelhill.com or by phone at 1-877-452-7184 (Toll-Free).
No Deal or Solicitation
This news release is for educational functions just and does not make up a deal to purchase or offer, or a solicitation of a deal to offer or purchase, any securities. The Deal to obtain MEG Shares and problem Strathcona typical shares in connection therewith is made exclusively by, and based on the terms set out in, the Deal to Purchase and Quote Circular outdated Might 30, 2025 (the “ Deal to Purchase and Circular“) and accompanying letter of transmittal and notification of ensured shipment. The Deal to Purchase and Circular and the associated files, consist of essential info about the Deal and must read in its totality by MEG investors.
Extra Details About the Deal and Where to Discover It
This news release connects to the Deal. In connection with the Deal, Strathcona has actually submitted and will submit pertinent products with the U.S. Securities and Exchange Commission (the “SEC”), consisting of a registration declaration on Kind F-10 (the “Registration Declaration”) under the United States Securities Act of 1933, as changed, that includes the Deal to Purchase and Circular and other files connected to the Deal. This news release is not an alternative to the Registration Declaration, the Deal to Purchase and Circular or any other pertinent files submitted with the relevant Canadian securities regulative authorities or the SEC. MEG investors and other interested celebrations are advised to check out the Registration Declaration, the Deal to Purchase and Circular, all files included by referral therein, all other relevant files and any modifications or supplements to any such files when they appear, since they do and will consist of essential info about Strathcona, MEG and the Deal. The Registration Declaration, Deal to Purchase and Circular and other products submitted or that will be submitted by Strathcona with the SEC will be offered digitally without charge at the SEC’s site at www.sec.gov. The Registration Declaration, Deal to Purchase and Circular, files included by referral therein and other pertinent files might likewise be acquired on demand without charge from Strathcona by e-mail at info@strathconaresources.com or by phone at (403) 930-3000 or Laurel Hill Advisory Group, the info representative for the Deal, by e-mail at assistance@laurelhill.com or by phone at 1-877-452-7184 (Toll-Free), and will likewise be offered digitally at www.sedarplus.ca.
Non-GAAP Financial Procedures and Ratios
This news release refers to particular monetary steps and ratios which are not standardized monetary steps under IFRS ® Accounting Standards (the “Accounting Standards”) and may not be similar to comparable monetary steps divulged by other companies. Non-GAAP monetary steps and ratios are utilized internally by management to evaluate the efficiency of the Business. They likewise supply financiers with significant metrics to evaluate the Business’s efficiency compared to other business in the very same market. Financiers are warned that these steps must not be interpreted as an option to monetary steps identified in accordance with usually accepted accounting concepts (” GAAP”) and these steps must not be thought about to be more significant than GAAP steps in examining the Business’s efficiency.
“ Net money and valuable securities” is consisted of money and valuable securities less financial obligation, as obtained under the Accounting Standards.
Production and Reserves Details
Strathcona’s oil and gas reserves price quotes have actually been prepared in accordance with National Instrument 51-101– Standards for Disclosure for Oil and Gas Activities (” NI 51-101″), which recommends oil and gas disclosure requirements for Canadian public companies taken part in oil and gas activities that vary from the oil and gas disclosure requirements of the SEC under Subpart 1200 of Policy S-K. NI 51-101 allows oil and gas companies, in their filings with the relevant securities regulative authorities in Canada, to reveal proven, likely and possible reserves, and to reveal reserves and production on a gross basis before subtracting royalties. The SEC meanings of proven and likely reserves are various than the meanings consisted of in NI 51-101. For that reason, Strathcona’s showed and likely reserves might not be similar to those divulged by U.S. business in reports submitted with the SEC. Additionally, as allowed by NI 51-101, Strathcona has actually identified and divulged its reserves and the associated net present worth of future net income from its reserves in its NI 51-101 certified reserves disclosure utilizing projection rates and expenses. On the other hand, the SEC needs that reserves and associated future net income be approximated based upon historic 12 month average rates instead of projection rates, however allows the optional disclosure of income approximates based upon various cost and expense requirements, consisting of standardized future rates or management’s own projections. As a result, the oil and gas reserves price quotes of Strathcona that are prepared in accordance with NI 51-101 are not similar to oil and gas reserve approximates supplied by U.S. business in their filings with the SEC.
In regard of 2024 year-end reserves info consisted of in this news release, Strathcona’s reserves have actually been examined in accordance with Canadian reserve examination requirements under NI 51-101. McDaniel & & Associates Professionals Ltd., an independent petroleum consulting company based in Calgary, Alberta, has actually examined the petroleum and gas reserves related to Strathcona’s interests in Alberta, British Columbia and Saskatchewan Such price quotes make up positive info, which are based upon worths that Strathcona’s management thinks to be sensible and undergo the very same constraints talked about under “Forward-Looking Details” listed below. A total filing of our oil and gas reserves and other oil and gas info provided in accordance with NI 51-101 are consisted of in Strathcona’s Yearly Details Kind for the year ended December 31, 2024, which can be discovered at www.sedarplus.ca.
This news release consists of numerous recommendations to the abbreviation “boe” which suggests barrels of oil equivalent. All boe conversions in this news release are obtained by transforming gas to oil at the ratio of 6 thousand cubic feet (” mcf”) of gas to one barrel (” bbl”) of petroleum. Boe might be deceptive, especially if utilized in seclusion. A boe conversion rate of 1 bbl: 6 mcf is based upon an energy equivalency conversion technique mostly relevant at the burner pointer and does not represent a worth equivalency at the wellhead. Considered that the worth ratio of oil compared to gas based upon presently dominating rates is substantially various than the energy equivalency ratio of 1 bbl: 6 mcf, using a conversion ratio of 1 bbl: 6 mcf might be deceptive as an indicator of worth.
Recommendations to “oil” in this news release describe bitumen and heavy oil. All production exists on a gross basis (as specified in NI 51-101) unless otherwise specified.
This news release consists of metrics frequently utilized in the petroleum and gas market, consisting of “reserves life index”. These terms do not have a standardized significance and might not be similar to comparable steps provided by other business, and for that reason must not be utilized to make such contrasts. Readers are warned regarding the dependability of oil and gas metrics utilized in this news release. Management of Strathcona utilizes these oil and gas metrics for its own efficiency measurements and to supply financiers with steps to compare Strathcona’s predicted efficiency gradually; nevertheless, such steps are not trusted signs of Strathcona’s future efficiency, which might not compare to Strathcona’s efficiency in previous durations, and for that reason must not be unduly trusted.
Forward-Looking Details
Particular declarations consisted of in this news release make up “positive info” within the significance of relevant Canadian securities laws and “positive declarations” within the significance of relevant U.S. securities laws (jointly, “positive info”). The positive info in this news release is based upon Strathcona’s present internal expectations, price quotes, forecasts, presumptions and beliefs. Such positive info is not an assurance of future efficiency and includes recognized and unidentified threats, unpredictabilities and other aspects that might trigger real outcomes or occasions to vary materially from those expected in such positive info. Strathcona thinks the product aspects, expectations and presumptions shown in the positive info are sensible since the time of such info, however no guarantee can be considered that these aspects, expectations and presumptions will show to be right, and such positive info consisted of in this news release must not be unduly trusted.
Making use of any of the words “anticipate”, “target”, “prepare for”, “plan”, “price quote”, “unbiased”, “continuous”, “might”, “will”, “task”, “think”, “depends”, “might” and comparable expressions are planned to recognize positive info. In specific, however without restricting the generality of the foregoing, this news release consists of positive info referring to the following: Strathcona’s service method and future strategies; anticipated running method; Strathcona’s 2025 production, reserves, liquidity and capital costs assistance; Strathcona’s long-range strategy, consisting of production development to 195 Mbbls/ d by 2031; the Deal; the intent of Strathcona to engage with the MEG’s Board and MEG investors straight.
All positive info shows Strathcona’s beliefs and presumptions based upon info offered at the time the relevant positive info is divulged and due to Strathcona’s present expectations with regard to such things as: the success of Strathcona’s operations and development and growth jobs; expectations relating to production development, future well production rates and reserve volumes; expectations relating to Strathcona’s capital program; the outlook for basic financial patterns, market patterns, dominating and future product rates, foreign exchange rates and rates of interest; the schedule of 3rd party services; dominating and future royalty routines and tax laws; future well production rates and reserve volumes; changes in energy rates based upon around the world need and geopolitical occasions; the effect of inflation; the stability and dependability of Strathcona’s properties; decommissioning responsibilities; and the governmental, regulative and legal environment, consisting of expectations relating to the present and future carbon tax routine and guidelines. Management thinks that its presumptions and expectations shown in the positive info consisted of herein are sensible based upon the info offered on the date such info is supplied and the procedure utilized to prepare the info. Nevertheless, it can not guarantee readers that these expectations will show to be right.
The positive info consisted of in this news release is not an assurance of future efficiency and includes recognized and unidentified threats, unpredictabilities and other aspects that might trigger real outcomes or occasions to vary materially from those expected in such positive info, consisting of, without restriction: modifications in product rates; modifications in the need for or supply of Strathcona’s items; modifications in basic financial and market conditions in Canada, the United States and somewhere else; decisions by the Company of the Petroleum Exporting Countries and other nations regarding production levels; unexpected operating outcomes or production decreases; modifications in tax or ecological laws, environment modification, royalty rates, tariff rates or other regulative matters; modifications in Strathcona’s advancement strategies or by 3rd party operators of Strathcona’s residential or commercial properties; failure to attain awaited outcomes of its operations; competitors from other manufacturers; failure to maintain drilling rigs and other services; inaccurate evaluation of the worth of acquisitions; hold-ups arising from or failure to acquire necessary regulative approvals; increased financial obligation levels or financial obligation service requirements; inflation; modifications in foreign exchange rates; unreliable estimate of Strathcona’s oil and gas reserve and contingent resource volumes; minimal, undesirable or an absence of access to capital markets or other sources of capital; increased expenses; an absence of appropriate insurance protection; and the effect of rivals. A few of these threats, unpredictabilities and other aspects resemble those dealt with by other oil and gas business and some are special to Strathcona Strathcona’s Yearly Details Kind for the year ended December 31, 2024 and other files submitted by Strathcona with the relevant Canadian securities regulative authorities (offered under Strathcona’s profile on SEDAR+ at www.sedarplus.ca) more explain threats, product presumptions and other aspects that might affect real outcomes.
Management authorized the production assistance and long-range strategy consisted of herein since the date of this news release. The function of the production assistance and long-range strategy is to help readers in understanding Strathcona’s anticipated and targeted monetary position and efficiency, and this info might not be proper for other functions.
The foregoing threats must not be interpreted as extensive. The positive info consisted of in this news release speaks just since the date of this news release and Strathcona does not presume any responsibility to openly upgrade or modify such positive info to show brand-new occasions or scenarios, other than as might be needed pursuant to relevant laws. Any positive info consisted of herein is specifically certified by this cautionary declaration.
SOURCE Strathcona Resources Ltd.