Crescent Point Energy has entered into an agreement to acquire all of the issued and outstanding shares of CanEra Energy for approximately C$1.1 billion (US$997 million). The purchase price includes approximately 12.9 million Crescent Point shares, C$192 million of cash and the assumption of approximately C$348 million of net debt.
Assets overview
· Production of approximately 10 MBOE/d (96% liquids)
· More than 260 net sections of land with Torquay potential, of which more than 200 net sections are exploratory land and 60 net sections are in the Crescent Point's core Flat Lake area
· More than 80 net internally identified Torquay drilling locations
· Tax pools estimated at approximately C$600 million
· 34.4 MMBOE of 1P and 52.1 MMBOE of 2P reserves
· Average metric of C$111,400/BOE for production
Assuming the successful completion of the agreement, Crescent Point's 2014 exit production rate is expected to increase by 7% to 145 MBOE/d from 135 MBOE/d and its average daily production in 2014 is expected to increase by 5% to 133 MBOE/d from 127 MBOE/d.
In Apr-2014, Crescent Point Energy announced hydrocarbon discovery in Torquay formation.
In Jun-2012, Crescent Point Energy closed the acquisition of Cutpick Energy.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.