Waterous Energy Fund closed the amalgamation of its two portfolio companies, Strathcona Resources and Osum Oil Sands. The amalgamated entity will continue in business under the name Strathcona Resources and will remain 100% owned by Waterous Energy Fund, Waterous Energy Fund co-investors and Strathcona employees.

Concurrent with the amalgamation, Strathcona Resources secured a new covenant-based C$1 billion ($830 million) credit facility, with TD Securities, RBC Capital Markets, Scotia Capital, CIBC Capital Markets and BMO Capital Markets serving as co-lead arrangers and joint bookrunners. TD Securities is also serving as administrative agent.

Strathcona Resources will have approximately 80,000 Boe/d (75% oil and liquids) of production, 1.7 BnBoe of proved-plus-probable (2P) reserves and a roughly 60-year reserve life index. Strathcona Resources is the product of nine separate transactions completed by Waterous Energy Fund since 2017, including three take-private transactions and two bankruptcy situations.

ATB Capital Markets and BMO Capital Markets acted as financial advisors to Strathcona Resources in connection with the transaction. CIBC Capital Markets and Scotiabank acted as financial advisors to Osum Oil Sands in connection with the transaction.

Blake, Cassels & Graydon served as legal advisor to Strathcona Resources and Osum Oil Sands in connection with the transaction, and Stikeman Elliott served as legal advisor to Waterous Energy Fund.