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 production guidance.
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 in 2012.
Crescent Point is also upwardly revising its 2011 exit production rate to more than 77,500 boe/d from 76,500 boe/d.
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 company said.
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 company said.
Key attributes of the acquisitions include:
-- Bakken light oil production of approximately 750 boe/d;
-- More than 78 net sections of land, of which the majority are operated;
-- 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.