Paramount Sells Kaybob Assets and Speeds Up Alhambra Expansion

The deal includes Paramount’s North Duvernay and Montney oil developments, legacy properties, a majority-owned gas processing plant and a wholly owned oil terminal and battery. The assets held 29 million barrels of oil equivalent in proved developed producing reserves and 101 million barrels in proved plus probable reserves at the end of last year. The C$341 million price consists of C$198 million in cash and a 49% stake in Calgary-based Outwest. Paramount will retain its physical long-haul gas contracts.

At Willesden Green, near Rocky Mountain House, Paramount has more than 320,000 net acres of rights. The next phase at Alhambra is now expected to start in the third quarter of 2028. Designed raw gas capacity for the phase has doubled to 100 million cubic feet a day; raw liquids capacity remains 10,000 barrels a day. Once complete, the plant is expected to handle more than 30,000 barrels of liquids and 200 million cubic feet of gas daily. Phase two began operating in early June after a planned May outage, doubling the facility’s designed raw handling capacity.

Paramount now targets plateau production of 80,000 barrels of oil equivalent a day at Willesden Green in 2029, up from its previous goal of 70,000. Third-quarter company sales averaged 55,742 barrels a day, about 2,750 above the top of its guidance range. Willesden Green averaged 37,815 barrels, roughly 10,350 more than in the prior quarter; Kaybob averaged 17,533, down from 19,413 in the second quarter.

The company reported a net loss of C$387.2 million, or C$2.65 a share, compared with a loss of C$2.3 million, or C$0.02 a share, a year earlier. It forecasts average sales of 51,000 to 53,000 barrels of oil equivalent a day in 2026. Its 2027 target is 46,000 to 50,000 barrels, excluding Kaybob, followed by 100,000 to 110,000 barrels a day in 2028—about double the 2027 range.