Cona Resources adds ‘trophy asset’ with close of Pengrowth Energy deal

WEF founder Adam Waterous says Cona's acquisition of Pengrowth fits with its strategy as a restructuring partner. In 2017 he was presented with a lifetime achievement award by the Oil & Gas Council. Image: Oil & Gas Council

Cona Resources Ltd. said Tuesday that it has closed its acquisition of Pengrowth Energy Corporation.

The $740-million transaction, announced in November, provides Cona with Pengrowth’s Lindbergh SAGD project in the Cold Lake oilsands region as well as natural gas, light oil and natural gas liquids production in the Groundbirch region of the Montney play.

In the third quarter of 2019, Pengrowth reported production of approximately 17,600 bbls/d from Lindbergh and 4,000 boe/d from Groundbirch.

Pengrowth launched a strategic review in March 2019 after failing to renegotiate its high debt load amid plunging western Canadian oil prices.

Cona, a portfolio company of Waterous Energy Fund (WEF), said that the Pengrowth acquisition makes it the largest privately-owned heavy oil producer in North America, with production of 35,000 boe/d.

"We believe the acquisition of Pengrowth enhances Cona's long life, low-decline asset base and adds a trophy asset in Pengrowth's Lindbergh oil property in the Cold Lake area of Alberta,” WEF founder Adam Waterous said in a statement.

He added that the deal fits with WEF’s strategy to pursue established businesses “with best-in-class oil and liquids rich assets in special situations, which require restructuring, recapitalization or repositioning."

— With files from the Canadian Press

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