Under the terms of the agreement, Crescent Point will buy Kaybob Smoky and Kaybob South Duvernay properties, and other minor interests in the Kaybob Region.
The assets include approximately 130 net drilling locations across nearly 65,000 net acres of crown land.
The assets currently considered for sale by Paramount Resources produce more than 4,000 barrels of oil equivalent per day (boepd). They include a gas plant, associated pipelines, water infrastructure, and seismic data.
Crescent said these assets are located adjacent to its existing land base. It is also expected to further increase Crescent’s scale, high-return drilling inventory and development opportunities within the basin.
Crescent Point president and CEO Craig Bryksa said: “We continue to generate strong, full cycle returns from our Kaybob Duvernay assets, which are top quartile within our overall portfolio.
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“Through this acquisition, we are increasing our drilling inventory in the play to over 20 years, based on current production. In addition, our land position will increase to approximately 400,000 net acres. We are also adding base production, with an estimated net present value of approximately $200m at current strip commodity prices.
“The acquisition includes an attractive ESG profile, consistent with our existing Kaybob Duvernay assets, including low emissions intensity and minimal asset retirement obligations.”
The transaction is scheduled to conclude in January 2023.
As part of a five-year plan, Crescent Point aims to increase its Kaybob Duvernay asset to more than 55,000boepd, from approximately 35,000boepd in 2022.
Last year, Crescent acquired Kaybob Duvernay assets from a subsidiary of Royal Dutch Shell for C$900m ($659.48m).
The assets included in the acquisition total approximately 130 net drilling locations across nearly 65,000 net acres of crown land.