Crescent Point completes deal for Polar Star's Alberta oil assets

June 12 Thu Jun 12, 2014 5:57pm EDT

Related Topics

June 12 (Reuters) - Crescent Point Energy Inc said it had completed the acquisition of oil assets in the Saskatchewan Viking play from private oil and gas producer Polar Star Canadian Oil and Gas Inc for about C$334 million ($307.8 million) in cash and stock.

The deal will increase Crescent Point's land base in the play by 38 percent and include more than 2,800 barrels of oil equivalent per day (boe/d) of production, the company said.

Crescent Point expects the deal to add to its per share reserves, production and cash flow on an adjusted basis.

The company also raised its average daily production forecast for 2014 to 135,500 boe/d from its earlier forecast of 134,000 boe/d. It also increased its capital expenditure budget by $25 million to $1.8 billion.

Crescent Point, which focuses on producing oil from unconventional fields such as the Bakken shales of southern Saskatchewan, has grown through acquisitions, including the C$1.1 billion purchase of CanEra Energy Corp in cash and debt in April.

Crescent Point did not specify if the deal was in Canadian or U.S. dollars. The company could not be immediately reached for comment.

Shares of the Calgary, Alberta-based company closed at $45.56 on the Toronto Stock Exchange on Thursday.

($1 = 1.0852 Canadian Dollars) (Reporting By Narottam Medhora in Bangalore; Editing by Simon Jennings)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.