Waterous Energy Fund Announces Cancellation of Subscription Receipts of Strathcona Resources Ltd.

Executive Summary

• Waterous Energy Fund Management Corp. announced that on October 10, 2025 the 21,400,000 subscription receipts of Strathcona Resources Ltd. were cancelled due to a Termination Event under the Subscription Receipt Agreement.
• The WEF Receiptholders are entitled to receive approximately $674.5 million (purchase price $661.688 M + cash dividends $12.84 M plus accrued interest/income) within three business days of the termination.
• Post‑cancellation, the WEF Funds continue to hold 170,536,718 Strathcona common shares (~79.6% of outstanding equity) and no subscription receipts.

Key Details

• Cancellation Trigger: Occurrence of a Termination Event as defined in the Subscription Receipt Agreement dated June 27 2025.
• Financial Entitlement to WEF Receiptholders:
• Aggregate purchase price for cancelled subscription receipts: $661,688,000.
• Cash dividends accrued on Strathcona common shares (May 29 2025‑termination): $12,840,000.
• Additional interest and other income earned on the escrowed purchase price (amount not specified).
• Timing of Payment: Amount to be paid no later than three (3) business days after the Termination Event.
• Equity Ownership Post‑Cancellation:
• Strathcona common shares held: 170,536,718 shares (~79.6% of issued & outstanding).
• Subscription receipts held: 0 (all cancelled).
• Purpose of Original Subscription Receipts: Invested for the proposed acquisition by Strathcona of remaining MEG Energy Corp. shares not already owned.
• Future Actions Stated: WEF Funds may adjust their beneficial ownership of Strathcona common shares via market purchases, private negotiations, or other means, subject to market conditions and securities laws.
• Regulatory Filing: The release is made pursuant to NI 62‑103 (Early Warning System). An early‑warning report will be filed with the relevant securities commissions and posted on SEDAR+.
• Contact Information: Waterous Energy Fund – [email protected]; CEO phone 403‑930‑6048.

Notable Quotes

(No direct quotes were provided in the release.)