With the deal, Crescent will acquire the Viking light oil resource play near Provost, Alberta, Canada with a production of about 5,600 barrels of oil equivalent per day (boe/d).
Provost will be Crescent Point’s third-largest producing area, after the Bakken and Shaunavon regions.
Crescent Point president and CEO Scott Saxberg said the Cutpick acquisition and the sale of non-core assets focus the company’s Alberta operations in Swan Hills, southern Alberta Bakken and Provost Viking and consolidate its third largest operating area.
"Our Provost office is our original field office and these deals will provide it with better flexibility to move equipment and manpower between our Shaunavon, southern Alberta Bakken and Viking areas," added Scott.
The Viking assets also include more than 300 net sections of land in Halkirk site, and 83 net sections, which Crescent expects prospective for light oil production through the application of horizontal infill drilling, multi-stage fracture stimulation and waterflood.
Production in Crescent Point’s Provost acreage is expected to rise to 7,500 boe/d from 2,000 boe/d, which made the company to increase its 2012 average daily production forecast to more than 88,500 boe/d from 86,500 boe/d.
Crescent Point said it will also assume $83m of Cutpick net debt, as part of the deal, to close on or before 19 June 2012.
Crescent Point has recently closed the sale of its 900 boe/d of non-core Alberta assets, with 80% potential of natural gas, to a private junior exploration and production company for $35m.
Crescent Point’s capital spending is expected to increase by $50m to $1.25bn, as the company has been on an acquisition spree this year to increase its presence in the Bakken and Cardium regions in western Canada.
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