The sale of Uinta Basin and non-core Saskatchewan assets by Crescent Point are part of the company’s transition plan and ongoing portfolio optimisation
Crescent Point Energy has agreed to offload its Uinta Basin asset in the US and certain southeast Saskatchewan conventional assets in Canada for a total sum of around C$912m (£563m) in separate deals with undisclosed parties.
In the first quarter of this year, the Canada-based oil producer started a sales process for its Uinta Basin asset. The company is now selling 100% of the asset to a private operator for about C$700m (£432.15m).
The Uinta Basin asset located in Utah state has nearly 350 net sections of undeveloped land, 123.1 million boe (MMboe) of proved plus probable (2P) reserves and 29.5MMboe of proved developed producing (PDP) reserves. The reserves are based on Crescent Point’s independent engineers’ evaluation and price forecast as of 31 December 2018.
Expected to be wrapped up next month, the transaction is subject to the receipt of regulatory approvals and the satisfaction of normal closing conditions.
In southeast Saskatchewan, the conventional assets involved in the sale, have nearly 7,000boe/d of current production and 49.2MMboe of 2P reserves. The reserves are based on the Crescent Point’s independent engineers’ evaluation and price forecast as of 31 December 2018.
Subject to the satisfaction of the usual closing conditions and regulatory approvals, the agreements pertaining to the Saskatchewan assets are expected to close late third quarter 2019.
Crescent Point CEO comments on the transactions
Crescent Point president and CEO Craig Bryksa said: “Since we established our transition plan in September 2018, we have meaningfully improved the sustainability of our business model by revising our capital allocation process, lowering our cost structure and strengthening our balance sheet.
“The sale of the Uinta Basin and certain conventional assets is accretive for our shareholders and aligned with the key criteria we established for our asset portfolio. These transactions are a considerable step forward in our ongoing plan to focus our asset base.”
Crescent Point plans to explore additional asset sales. Included in these are the rest of its southeast Saskatchewan conventional assets, and the monetisation of its Saskatchewan gas infrastructure assets.