Strathcona Resources Ltd. recently sold all of its Montney Formation assets for approximately $2.84 billion.
The sale comes as Strathcona reports a strong Q1 for 2025.
Read more: Strathcona looks to strong 2025
The sale is broken up into three separate transactions. The sale of Kakwa assets to ARC Resources Ltd. for $1.695 million, Grand Prairie assets for approximately $850 million and the Groundbirch asset to Tourmaline Oil Corp for $291.5 million.
The Montney operation evolved under Strathcona from 5 Mboe/d (thousand barrels of oil equivalent per day) in January 2017 to 72 Mboe/d in 2024.
Strathcona will now be moving to a pure-play heavy oil company, producing approximately 120 Mbbls/d (thousand barrels per day).
Adam Waterous, executive chairman, managing partner and CEO of Waterous Energy Fund, says they’re worried about oil supply.
“On a macro basis, we remain constructive on long-term oil demand. We remain pessimistic on long-term oil supply,” he said. “That doesn’t mean we’re negative on natural gas.
“I think the three buyers of our former Montney business are going to be very success with their purchases.”
The Kakwa and Grand Prairie sales are expected to occur in Q3, while the Groundbirch sale will happen in Q2.
Some Q1 highlights for them included production of 194,609 Mboe/d. Production of 195 Mboe/d was up 4 per cent quarter-over-quarter.
In Lloydminster Thermal, activity is still focused on the construction of the new Meota Central processing facility, which is 22 per cent complete. Lloydminster Conventional’s annual drilling program yielded strong results at Winter, which hit a 10-year high production level of 4,000 Bbls/d in April.
Strathcona expects Q2 2025 production of 180 Mboe/d with full-year production expected to average 150-160 Mboe/d and 120-125 Mbbls/d in third and fourth quarters.
Read more: Strathcona president retires
