Crescent Point Energy has agreed to acquire the oil and gas assets in Gold Creek and Karr Montney regions in Alberta, Canada, from Spartan Delta for $1.24bn (C$1.7bn) in cash.

Under the deal, shareholders of Spartan Delta will receive a dividend of C$9.50 per share.

Crescent Point said the acquisition will add 600 new Montney locations, which are adjacent to its Kaybob Duvernay assets.

Crescent Point president and CEO Craig Bryksa said: “The acquired lands are also situated in the volatile oil fairway with similar resource characteristics to our adjacent Kaybob Duvernay play, where we have demonstrated significant operational excellence.”

The assets considered for acquisition have a production capacity of 38,000 barrels of oil equivalent per day (boepd).

Subject to regulatory approvals and customary closing conditions, the transaction is expected to close during the second quarter of 2023.

Crescent Point also plans to divest additional non-core assets over time as part of its portfolio optimisation strategy.

Bryksa added: “The Montney acquisition is immediately accretive to our per share metrics, enhances our return of capital to shareholders, and is aligned with our long-term strategy to focus on high quality, scalable resource plays that meet our defined asset criteria.”

Upon completion of the transaction, Spartan will continue to develop its liquids-rich assets in the Deep Basin while focusing on returning free funds flow to its shareholders.

In addition, Spartan plans to spin off some of its assets in Alberta and British Columbia regions into a new subsidiary, Logan Energy Corp. The Spartan Delta shareholders will receive one common share purchase warrant of Logan, as well as a special dividend of C$0.10 per share in July 2023.