Crescent Point Energy Corp. has agreed to acquire additional Kaybob Duvernay assets in Canada from Paramount Resources Ltd. for $375 million cash.
The assets include about 130 net drilling locations across nearly 65,000 net acres of crown land (90% average working interest) with no expiries, the company said in a release Dec. 9. The acquired assets currently produce over 4,000 boe/d (50% liquids) and include a gas plant, associated pipelines, water infrastructure, and seismic data.
With the acquisition, the company increases its drilling inventory in the play to over 20 years based on current production and increases its land position to about 400,000 net acres, said Craig Bryksa, Crescent Point president and chief executive officer.
The company plans to grow its Kaybob Duvernay asset within its 5-year plan to over 55,000 boe/d from about 35,000 boe/d in 2022.
In 2024, Crescent Point intends to add a second rig in the Kaybob Duvernay as part of its development program. 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. The company's fourth and fifth fully operated multi-well pads were recently brought on-stream and are generating strong initial production results that are in-line with, or ahead of, its internal type wells. Average IP rates for the fourth and fifth pads are about 785 boe/d per well (IP90) (75% liquids) and about 950 boe/d per well (IP30) (65% liquids), respectively.
Crescent Point's 2023 annual average production guidance is now 138,000-142,000 boe/d, an increase of 4,000 boe/d, with development capital expenditures unchanged at $1-1.1 billion.
The acquisition is expected to close in January 2023.
