Oilfield juggernaut Crescent Point Energy is announcing the sale of some of its oil operations in southeast Saskatchewan.
The ‘conventional assets’ being sold in the southeast produce approximately 7,000 barrels of oil per day. They are sitting on reserves holding the equivalent of around 49 million barrels of oil, according to studies by the company’s independent engineers.
The move comes alongside Crescent Point’s divestment in Utah’s Uinta Basin, where assets producing an estimated 20,000 barrels of oil per day were also sold off for a reported price of $700 million.
In total, the sale is worth $912 million and is expected to be officially closed in October.
Crescent Point says the ‘non-core’ southeastern sites involved are projected to run with a higher operating cost and generate a lower profit than the corporate average as a result.
Another factor is the cost of future decommissioning being higher than the company wants.
The deal is reportedly part of a transition plan the Calgary-based company has been working towards since last fall when new management took over.
“The sale of the Uinta Basin and certain conventional assets is accretive for our shareholders and aligned with the key criteria we established for our asset portfolio. These transactions are a considerable step forward in our ongoing plan to focus our asset base,” Craig Bryksa, President and CEO of Crescent Point, said in a release.
The sale is anticipated to improve the company’s debt, reportedly already down by over a billion dollars since last year.
