Crescent Point Energy has acquired approximately 750 boe/d
of production and more than 78 net sections of lower-risk land
in North Dakota through a pair of acquisitions.
As a result of the deals, Crescent Point said it was
upwardly revising its 2011 capital expenditure plans and
Capital expenditures are expected to increase by $50 million
to $1.05 billion, with 100%of the increase allocated to
development capital on the acquired assets.
In conjunction with the acquisitions, Crescent Point said it
entered into a two-year agreement with a leading US fracture
stimulation company with operations in North Dakota to secure
access to equipment and services for expanded development plans
Crescent Point is also upwardly revising its 2011 exit
production rate to more than 77,500 boe/d from 76,500
The closing of the agreements allowed Crescent Point to
acquire approximately 750 boe/d of Bakken light oil production
and more than 78 net sections of land in North Dakota, the
Crescent Point believes the land to be prospective for the
lower-risk Bakken and Three Forks zones.
The majority of the lands are in a highly prospective area
of the Bakken and are adjacent to existing Crescent Point
properties, further consolidating Crescents land position
in North Dakota.
Combined payment was approximately $164 million incash, the
Key attributes of the acquisitions include:
-- Bakken light oil production of approximately 750
-- More than 78 net sections of land, of which the majority are
-- Average land acquisition cost of approximately $2,500 per
acre, net of value for production; and
-- More than 140 net internally identified low-risk drilling
locations in the Bakken and Three Forks zones.