Crescent Point Sets Sights On Private Alberta Producer

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
CA$425.0MM
Description

To buy company focused on Viking light oil resource in Halkirk area of AB featuring 103 horizontal wells, gaining 5,600 BOE/d.

Crescent Point Energy Corp., Calgary, (Toronto: CPG) plans to acquire privately held, Calgary-based Cutpick Energy Inc. for approximately C$425 million in equity and assumed debt.

The deal values production at $73,036 per producing barrel equivalent, according to Cutpick.

Crescent Point will issue 0.14 Crescent Point share per Cutpick share, reflecting a value of C$6.04 per Cutpick common share based on a five-day weighted average trading price of C$43.13 per Crescent Point share. Crescent Point will also assume approximately C$83 million in net debt.

Cutpick is focused on the exploitation of its Viking light oil resource lands in the Halkirk area of Alberta. To date, Cutpick has drilled 103 Viking horizontal wells, with a 100% success rate, in the Viking fairway at Halkirk.

Production is approximately 5,600 barrels of oil equivalent per day (65% oil and gas liquids).

FirstEnergy Capital Corp. is financial advisor to Cutpick and Peters & Co. Ltd. is strategic advisor to Cutpick.