Cavalier Energy acquired 36 sections of land at Eagles Nest in early 2012. The property is prospective for oil sands bitumen in the McMurray and Wabiskaw formations and seismic data is currently being evaluated to validate mapping and plan additional seismic and drilling activities.
FOX DRILLING INC.
Fox Drilling Inc. ("Fox Drilling") now owns five triple-sized rigs in Canada, including two new built-for-purpose walking rigs and a rig previously owned by Paramount Drilling U.S. that was moved in the fourth quarter of 2012 from the United States. Fox Drilling's two original rigs drilled on the Company's lands in Alberta throughout 2012. The two new walking drilling rigs will be deployed on multi-well pad sites in the Kaybob COU's Deep Basin development. Fox Drilling's rigs are designed to drill the deep horizontal wells that industry is currently focusing on in the Deep Basin of Alberta.
INVESTMENTS IN OTHER ENTITIES
Market Value(1)As at December 31 2012 2011---------------------------------------------------------------------------- Shares Shares (000's) ($ millions)($/share) (000's) ($ millions)($/share) --------------------------------------------------------------Trilogy Energy Corp. ("Trilogy") 19,144 $ 557.3 29.11 24,144 $ 907.1 37.57MEG Energy Corp. 3,700 112.6 30.44 3,700 153.8 41.57MGM Energy Corp. 54,147 13.5 0.25 43,834 10.6 0.24Other(2) 21.4 5.8----------------------------------------------------------------------------Total $ 704.8 $ 1,077.3--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Based on the period-end closing price of publicly traded investments and book value of remaining investments.(2) Includes investments in other public and private corporations.In January 2012, Paramount closed the sale of 5.0 million of its non-voting Trilogy shares for net cash proceeds of $181.7 million, recognizing a gain of $157.2 million.
CORPORATE
In the fourth quarter of 2012, the revolving period and maturity date of the Company's $300 million credit facility was extended to November 30, 2013 and November 30, 2014, respectively, with all other material terms of the credit facility remaining unchanged.
To fund the Company's growth initiatives, Paramount raised over $700 million in aggregate cash proceeds in 2012, including over $400 million from equity offerings, the sale of investments and non-core oil and gas properties and $300 million from the notes offering.
OUTLOOK
Paramount plans to invest approximately $500 million in its Principal Properties in 2013, excluding land acquisitions and capitalized interest, primarily focused on the Kaybob COU's Deep Basin development. Construction of the Musreau Deep Cut Facility is scheduled to be completed in the fourth quarter and construction of the third-party Smoky Deep Cut Facility will continue into 2014. In preparation for the start-up of the deep cut facilities, the Company plans to drill and complete up to 40 new wells in Kaybob in 2013. Budgeted activities also include the drilling, completion and tie-in of middle Montney wells at Karr-Gold Creek.
