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

Executive Summary

• Waterous Energy Fund (“WEF”) announced the cancellation of 21,400,000 Strathcona Resources Ltd. subscription receipts on October 10 2025 due to a Termination Event under the Subscription Receipt Agreement.
• The WEF Receiptholders will receive approximately $674.5 million (purchase price plus accrued dividends and interest) within three business days of the termination.
• Following cancellation, the WEF Funds retain 170,536,718 common shares of Strathcona Resources (≈79.6% ownership) and hold no subscription receipts.

Key Details

• Cancellation Trigger: Occurrence of a Termination Event as defined in the Subscription Receipt Agreement dated June 27 2025.
• Financial Settlement to WEF Receiptholders:
• $661,688,000 – aggregate purchase price for the cancelled subscription receipts.
• $12,840,000 – accrued cash dividends per common share paid between May 29 2025 and the termination date.
• Additional interest and other income earned on the escrowed purchase price.
• Timing of Payment: Amount to be paid no later than three (3) business days after the Termination Event.
• Pre‑Cancellation Ownership:
• 170,536,718 common shares (≈79.6% of Strathcona’s issued and outstanding shares).
• 21,400,000 subscription receipts (100% of outstanding receipts).
• Post‑Cancellation Ownership: Same 170,536,718 common shares retained; zero subscription receipts remaining.
• Purpose of Original Subscription Receipts: Investment tied to Strathcona’s proposed takeover bid for MEG Energy Corp.’s outstanding shares not already owned by Strathcona or its affiliates.
• Future Actions: WEF Funds may buy, sell, or otherwise adjust their common‑share holdings in the open market or via private agreements, subject to market conditions and securities laws. No prior notice required.
• Regulatory Filing: The release is made pursuant to NI 62‑103 (Early Warning System). An early‑warning report will be filed with applicable securities commissions and posted on SEDAR+.

Notable Quotes

(No direct quotes were provided in the release.)