Waterous Energy Fund, a private equity firm, is set to combine its portfolio companies Strath Resources and Cona Resources to create Strathcona Resources, a wholly private equity-owned, oil-weighted producer in North America. Financial terms were not disclosed. "We believe that the Strath and Cona assets fit perfectly together, with Strath's condensate and natural gas production closely matching Cona's condensate and natural gas operational requirements. Together, Strath and Cona create a premier company with sufficient scale and commodity diversity to withstand the current market volatility and generate substantial free cash flow after sustaining capital expenditures. This transaction fits with WEF's strategy of acquiring companies with trophy properties in special situations and pursuing an action-oriented value creation plan through recapitalising, restructuring and repositioning the businesses," Adam Waterous, WEF CEO.