Sept 2 Crescent Point Energy Corp said on Tuesday that it had reached a C$378 million ($346 million) deal to buy producing conventional oil assets in Saskatchewan and Manitoba, along with undeveloped land, from Lightstream Resources Ltd.
Crescent Point said the assets it is acquiring are free cash flowing, producing some 3,300 barrels of oil equivalent per day, and come with 76 net sections of land adjacent to its existing land base in the area. It valued those assets at C$328 million.
The Calgary-based energy company will also receive 44 net sections of undeveloped freehold interests, worth about C$50 million, as part of the mostly cash deal.
Crescent Point also raised its 2014 forecast, based on the Lightstream deal and other acquisitions made so far this year, along with successful drilling results at its Torquay resource play in Saskatchewan.
It said capital spending will increase by C$200 million to C$2 billion, with cash flows from operations expected to climb 3 percent to C$2.6 billion from C$2.5 billion.
The deal is expected to close by Sept. 30.
(1 US dollar = 1.0927 Canadian dollars) (Reporting by Julie Gordon in Vancouver; Editing by Steve Orlofsky)