Published: February 10, 2023 |

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Crescent Point Energy has entered into a purchase and sale agreement to acquire certain Kaybob Duvernay assets from Paramount Resources Ltd. for cash consideration of $375 million. These assets are adjacent to Crescent Point’s existing land base and further enhance the company’s scale, high-return drilling inventory and development opportunities within the basin. This acquisition is expected to close during January 2023.

The assets include approximately 130 net drilling locations across nearly 65,000 net acres of crown land (90 percent average working interest) with no expiries. The acquired assets currently produce more than 4,000 boe/d (50 percent liquids) and include a gas plant, associated pipelines, water infrastructure and seismic data.

“We continue to generate strong full cycle returns from our Kaybob Duvernay assets, which are top quartile within our overall portfolio. Through this acquisition, we are increasing our drilling inventory in the play to over 20 years, based on current production,” said Craig Bryksa, president and CEO of Crescent Point.

“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 $200 million 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,” added Bryksa.

Crescent Point plans to grow its Kaybob Duvernay asset from approximately 35,000 boe/d in 2022 to over 55,000 boe/d within its five-year plan. The significant inventory depth this asset provides also underpins the company’s 10-year plan. Crescent Point’s disciplined development program includes adding a second rig in the Kaybob Duvernay in 2024.

Crescent Point is currently drilling its seventh pad in the play and expects to bring its sixth fully operated pad on-stream in early 2023. The company’s fourth and fifth fully operated multi-well pads were recently brought on-stream and are generating strong initial production (IP) results that are in-line with, or ahead of, its internal type wells. Average IP rates for the fourth and fifth pads are approximately 785 boe/d per well (IP90) (75 percent liquids) and approximately 950 boe/d per well (IP30) (65 percent liquids), respectively.

The company has also successfully lowered drilling days to between 11 to 13 days per well on its recent pads, a reduction of over 40 percent since entering the play. Crescent Point continues to seek opportunities to further enhance returns and overall recoveries through additional efficiencies and optimization of its drilling and completions design.

About Crescent Point Energy
Crescent Point Energy, is an independent oil and gas company that acquires, explores for and develops oil and gas properties. Its portfolio of products includes light and medium crude oil, heavy crude oil, tight oil, natural gas liquids, shale gas and conventional natural gas. The company has interest in light and medium oil and natural gas reserves in Western Canada and the U.S. Crescent Point has crude oil and natural gas properties in Alberta, Saskatchewan, and Manitoba provinces in Canada; and Montana and North Dakota in the U.S. The company’s portfolio of assets includes the Viewfield Bakken, Torquay, Shaunavon, and North Dakota basin. Crescent Point is headquartered in Calgary, Alberta, Canada.

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