Crescent Point Energy has signed an all-cash deal worth C$1.7bn ($1.25bn) with Spartan Delta to acquire the latter’s Gold Creek and Karr Montney assets in the Montney Formation in Alberta, Canada.
The deal gives 600 Montney locations to Crescent Point Energy, which is equivalent to more than 20 years of premium drilling inventory. The company will gain nearly 235,000 net acres of contiguous land with Montney rights within the Gold Creek and Karr area.
Crescent Point Energy will be adding around 38,000 barrels of oil equivalent per day (boe/d) of which 55% are oil and liquids. The assets being acquired are located near the company’s Kaybob Duvernay assets, which provides scope for operational efficiencies.
Crescent Point Energy president and CEO Craig Bryksa said: “The Montney acquisition is immediately accretive to our per share metrics, enhances our return of capital to shareholders, and is aligned with our long-term strategy to focus on high quality, scalable resource plays that meet our defined asset criteria.
“These assets include over 20 years of drilling locations and increase our total corporate inventory of premium locations to 15 years. The acquired lands are also situated in the volatile oil fairway with similar resource characteristics to our adjacent Kaybob Duvernay play, where we have demonstrated significant operational excellence.”
Spartan Delta said that it will retain and continue to develop its liquids-rich, sustainable production Deep Basin assets, with an aim to return free funds flow to its shareholders.
The company also formed a new subsidiary called Logan Energy.
The latter will be transferred with 4,000boe/d of production in the Pouce Coupe and Simonette areas of north-west Alberta, legacy north-east British Columbia production which comes to 500boe/d, as well as 55,769 net undeveloped acres in the Flatrock area of north-east British Columbia.
Spartan Delta president and CEO Fotis Kalantzis said: “I am pleased to announce the successful conclusion of our strategic repositioning process with our core Montney development asset sale, the creation of a new growth-focused Montney junior company and the retention of our sustainable Free Funds Flow and dividend generating assets in the Deep Basin.”
The deal, which is subject to regulatory approvals and customary conditions, is expected to close during Q2 2023.
