Canada's Crescent Point to buy Kaybob Duvernay assets for $275 mln

Paramount Resources (Pre-Merger)

09/12/2022 14:09

Dec 9 (Reuters) - Canadian oil and gas producer Crescent
Point Energy Corp  CPG.TO  said on Friday it will buy Kaybob
Duvernay assets in Alberta from Paramount Resources Ltd  POU.TO 
for C$375 million  ($275.49 million) in cash.
    The deal bolsters Crescent's inventory in the Duvernay play
to over 20 years, with its land position increasing to about
400,000 net acres. 
    Calgary, Alberta-based Crescent added it plans to grow its
Kaybob Duvernay asset to over 55,000 barrels of oil equivalent
per day (boepd) within its five-year plan, from 35,000 boepd in
2022.
    The assets include about 130 net drilling locations across
nearly 65,000 net acres of land.
    To reflect the deal, Crescent raised its 2023 annual average
production guidance to between 138,000 boepd and 142,000 boepd
from a previous outlook of between 134,000 boepd and 138,000
boepd.
    The energy company has also increased its first-quarter base
dividend by 25% to 10 Canadian cents per share.
    The deal will be funded through existing credit facilities
and is expected to close during January 2023, Crescent said.
    Last year, Crescent purchased Kaybob Duvernay assets from
oil major Royal Dutch Shell's  RDSa.L  unit for C$900 million.
    U.S.-listed shares of Crescent are up 1.1% at $6.7
premarket.
($1 = 1.3612 Canadian dollars)
 (Reporting by Ankit Kumar; Editing by Krishna Chandra Eluri)
 ((Ankit.Kumar2@thomsonreuters.com;))