Canadian oil and gas producer Crescent Point Energy announced today plans to acquire Montney Shale operator Spartan Delt Corp. for $1.7 billion in cash.
The deal is expected to hand Crescent Point an inventory of 600 drilling locations across 235,000 acres in Alberta. The company added that its capital plan for the asset amounts to over 20 years of drilling activity.
Current production from the newly acquired assets is around 38,000 BOE/D with 55% oil and liquids production. On a pro forma basis, the acquisition will lift Calgary-based Crescent Point’s expected production this year from an upper limit of 142,000 BOE/D to a range between 160,000 and 166,000 BOE/D.
The Montney assets are found in the volatile oil window and have similar resource characteristics to Crescent Point's assets in the Kaybob Duvernay play which it acquired from Shell for $707 million in 2021.
Crescent Point said in an interview with Reuters that its focus for the next year is now on reducing debt and that may mean selling other assets, including those in North Dakota’s Bakken Shale.
