Crescent Point Energy has signed an agreement with Paramount Resources to acquire additional Kaybob Duvernay assets for a total consideration of C$375m ($275.4m).
The assets are located adjacent to the company’s existing land base, with around 130 net drilling locations across 65,000 net acres of crown land that has no expiries.
Crescent Point to acquire Kaybob Duvernay assets. (Credit: Mihai on Unsplash)
The Kaybob Duvernay assets currently produce more than 4,000boe/d, with 50% liquids, and include a gas plant, associated pipelines, water infrastructure and seismic data.
Crescent Point said that the transaction will further enhance its scale, high-return drilling inventory and development opportunities within the basin.
The company intends to fund the acquisition through its existing credit facilities and is expected to be completed during January 2023.
Crescent Point president and CEO Craig Bryksa said: “Through this acquisition, we are increasing our drilling inventory in the play to over 20 years, based on current production.
“In addition, our land position will increase to approximately 400,000 net acres. We are also adding base production with an estimated net present value of approximately $200m at current strip commodity prices.
“The acquisition includes an attractive ESG profile, consistent with our existing Kaybob Duvernay assets, including low emissions intensity and minimal asset retirement obligations.”
Crescent Point intends to expand its Kaybob Duvernay assets from around 35,000boe/d production in 2022 to more than 55,000boe/d in the next five years.
Its development programme includes the addition of a second rig in the Kaybob Duvernay in 2024.
The company is currently drilling its seventh pad in the play and expects to bring its sixth fully operated pad on-stream in early 2023.
Its fourth and fifth multi-well pads were recently brought into operations and are generating initial production results of around 785boe/d per well and 950boe/d per well, respectively.
Crescent Point said that it reduced the drilling days to 11-13 days per well on its recent pads, which is more than a 40% reduction since its entry in this play.
