ARC Resources Ltd. has finalized its acquisition of Montney Basin oil and gas assets from Strathcona Resources Ltd. in a transaction valued at approximately CA$1.6 billion (US$1.18 billion). The deal focuses on high-value properties in the Kakwa region of Alberta, aligning with ARC’s strategy to expand its Montney presence following the September 2024 divestiture of its non-core Montney assets for US$59.2 million.
The newly acquired assets are evenly split between oil and natural gas production and are expected to contribute approximately 37,000 BOE/D to ARC’s output for the remainder of the year. The acquisition boosts ARC’s expected Kakwa production by 24% and extends its Montney inventory life from 12 to 15 years.
Strathcona Resources Confirms CA$2.86B Montney Asset Sale; Transitions to Pure-Play Heavy Oil
Strathcona Resources Ltd. (TSX: SCR) announced the closing of its Montney divestiture, totaling approximately CA$2.86 billion, including closing adjustments. The sale included the Groundbirch asset (closed June 1, 2025) and the Kakwa and Grande Prairie assets (closed July 2, 2025).
With the sale complete, Strathcona has repositioned itself as a pure-play heavy oil company, producing approximately 120,000 barrels of oil per day (100% oil). The company now holds a 50-year 2P reserves life index and plans to grow production to 195,000 barrels per day by 2031.
Financially, Strathcona maintains a robust position with ~CA$200 million in positive net cash and marketable securities, after accounting for all debt. This includes shareholdings in Tourmaline Oil Corp. (4.6 million shares) and MEG Energy Corp. (23.4 million shares).
Strathcona Addresses MEG Energy Strategic Process
Strathcona also provided an update on its unsolicited offer to MEG Energy Corp., first submitted on April 28, 2025. Despite interest from MEG shareholders, Strathcona expressed frustration that the MEG board has not engaged in any discussions regarding the proposal or alternative deal structures.
“We remain ready and willing to engage with MEG’s board in good faith,” Strathcona stated, reaffirming its commitment to dialogue ahead of the September 15 tender deadline. The company also signaled its intent to continue direct conversations with MEG shareholders if necessary.
ARC Resources Ltd. is a leading Canadian oil and gas producer with a strategic focus on the Montney resource play. The company continues to grow through disciplined acquisitions and operational excellence in natural gas and liquids-rich areas.
Strathcona Resources Ltd. is one of North America’s fastest-growing oil and gas companies. Focused on thermal and enhanced oil recovery, Strathcona has built its business through the consolidation and development of long-life oil assets.
