#Canada #Calgary #Strathcona #MEG Energy #Montney Sale

Strathcona Resources Ltd. Finalizes Sale of Montney Assets

Strathcona Resources Ltd. (TSX: SCR) has announced the successful closing of its previously reported asset sales in the Montney region, achieving a significant total value of approximately $2.86 billion, which includes various closing adjustments. This transaction represents a significant financial maneuver for Strathcona, as it refines its focus on heavy oil production.

The sale of the Groundbirch asset was completed on June 1, 2025, while the sales of both the Kakwa and Grande Prairie assets were confirmed today, marking a pivotal moment in the company’s operational strategy. With these transactions finalized, Strathcona is now a pure-play heavy oil producer, currently producing around 120,000 barrels per day, which is entirely oil. Looking ahead, the company has a robust plan to increase production to an impressive 195,000 barrels per day by 2031, supported by a promising 50-year reserves life index.

As of now, Strathcona’s financial position is also solid, boasting approximately $200 million in net cash and marketable securities after accounting for all debts. This figure includes holdings of about 4.6 million shares in Tourmaline Oil Corp. and 23.4 million shares in MEG Energy Corp., further emphasizing Strathcona's strategic positioning in the oil and gas market.

Update on MEG Energy Strategic Alternatives Process

In tandem with the asset sales, Strathcona has been actively engaged in discussions regarding acquiring MEG Energy Corp. Strathcona expressed satisfaction that the MEG board has decided to explore strategic alternatives but is notably disappointed that there has been no engagement from MEG’s board in the weeks following Strathcona's initial written acquisition proposal submitted on April 28, 2025. Despite this setback, MEG shareholders have conveyed a desire for their board to enter into discussions with Strathcona to explore the potential for a mutually beneficial outcome.

Strathcona has reiterated its readiness to collaborate with the MEG Board as part of their strategic alternatives process. Meanwhile, the company remains committed to continuous dialogue with MEG shareholders leading up to the tender deadline on September 15, 2025, for its acquisition offer. This offer proposes that every holder whose MEG shares are accepted in the Offer will gain compensation structured as 0.62 of a common share in Strathcona, along with a cash payment of C$4.10 per MEG share.

About Strathcona Resources

Strathcona is rapidly ascending as one of North America’s leading oil and gas producers, particularly noted for its focus on thermal oil and enhanced oil recovery techniques. The company has meticulously crafted its growth strategy around the consolidation and enhancement of long-term oil asset operations. Strathcona’s common shares are publicly traded on the Toronto Stock Exchange under the symbol ‘SCR’. Investing in Strathcona equates to investing in a firm with a well-defined operational trajectory and significant growth potential in the oil sector.

To discover more about Strathcona Resources and its ongoing projects or offers, interested parties are encouraged to visit the company's official website at www.strathconaresources.com. As Strathcona navigates the complexities of the oil and gas market, its recent asset transactions and strategic maneuvers hint at a bright future ahead in the North American energy landscape.