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Crescent Point Energy is selling some of its assets in southeast Saskatchewan as part of a transaction worth nearly $1 billion.
In a media release, the Calgary-based company said the “conventional assets” being sold in Saskatchewan produce approximately 7,000 barrels of oil per day. Engineers also have determined the land contains reserves of 49.2 million barrels.
The company said it would have to spend $25 million to sustain the current level of production in 2020.
That deal and the sale of the company’s Uinta Basin assets in Utah are to generate $912 million for Crescent Point.
The sales are expected to be completed in October.
“Since we established our transition plan in September 2018, we have meaningfully improved the sustainability of our business model by revising our capital allocation process, lowering our cost structure and strengthening our balance sheet,” Craig Bryksa, Crescent Point’s president and CEO, said in the release.
“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.”
The company said it expects its net debt will be reduced to $2.75 billion by the end of 2019.
