On May 14, 2025, Strathcona Resources Ltd. announced it entered into a definitive agreement to sell its Groundbirch Montney asset to Tourmaline Oil Corp. for $291.5 million in common shares. At the time of announcement, this equates to approximately C$398 million. This transaction is one of three comprising Strathcona’s broader Montney divestiture strategy but stands out as the only one settled in equity. The deal is expected to close in Q2 2025, subject to regulatory approvals and customary conditions. Strathcona emphasized that the shares received are subject only to a four-month statutory hold period, with no current plans for disposition, effectively making Strathcona a shareholder in Tourmaline.

The Groundbirch asset forms part of Strathcona’s broader Montney exit, which, collectively, generated $149 million in 2024 operating earnings and represented 15% of the company’s year-end 2024 proved PV-10 value. The decision to divest aligns with Strathcona’s repositioning as a pure-play heavy oil company focused on long-life thermal and conventional oil production. The company expects to generate approximately 120 Mbbls/d post-disposition, with a 50-year 2P reserve life index and positive net cash.

Scotiabank served as lead financial advisor on the Groundbirch sale, with RBC Capital Markets and ATB Capital Markets also acting as financial advisors. Blake, Cassels & Graydon LLP provided legal counsel to Strathcona across all related transactions. This strategic move underscores Strathcona’s emphasis on optimizing its portfolio while enhancing shareholder value through focused operational realignment.