Crescent Point Energy Corp. agreed to sell its position in the oil fields of North Dakota for $500 million (C$678 million) as it shifts its focus into the Canadian province of Alberta.
(Bloomberg) — Crescent Point Energy Corp. agreed to sell its position in the oil fields of North Dakota for $500 million (C$678 million) as it shifts its focus into the Canadian province of Alberta.
The assets, which produce the equivalent of about 23,500 barrels of oil a day, were sold to a private operator, Calgary-based Crescent Point said Thursday, without disclosing the buyer. The transaction’s proceeds will be used to accelerate debt repayment, with net debt expected to total less than C$2.2 billion by year-end, down from C$3 billion at end of the second quarter.
Crescent Point has been revamping its portfolio to concentrate on Alberta’s Montney and Duvernay formations, striking a C$1.7 billion deal for Spartan Delta Corp.’s Montney assets in March. Chief Executive Officer Craig Bryksa said at that time that Crescent Point’s positions in North Dakota, Saskatchewan and Alberta’s Swan Hills would be considered for divestiture to help shore up the company’s balance sheet.
North Dakota is home of the Bakken shale formation, where oil production has languished in recent years. Crescent Point said Thursday that its production in North Dakota was on track to fall to 18,000 barrels of oil equivalent a day by 2027 and decline further in future years.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.