Crescent Point Energy selling $600M of assets to Saturn Oil & Gas

The Crescent Point Energy Corp. logo is shown in this undated handout photo. (THE CANADIAN PRESS/HO)

Crescent Point Energy Corp. says it has signed a $600-million deal to sell some of its oil-producing properties in Saskatchewan to Saturn Oil & Gas.

The company says included in the deal are its Flat Lake and Battrum properties. It says production from the assets is expected to be 13,500 barrels of oil equivalent per day over the next 12 months.

As a result of the deal, Crescent Point is revising its 2024 annual average production guidance to a range of 191,000 to 199,000 boe/d, a reduction of 7,000 boe/d compared with the midpoint of its prior guidance range.

During the first quarter of 2024, Crescent Point also closed the previously announced disposition of its Swan Hills and Turner Valley assets for $140 million, before closing adjustments.

The company says it will use the proceeds from the dispositions to reduce debt.

Calgary-based Crescent Point has made several major acquisitions since 2021 in the Montney and Kaybob Duvernay oil-and-gas regions of northwest Alberta.

Saturn Oil & Gas, also based in Calgary, has assets across Alberta and Saskatchewan.

This report by The Canadian Press was first published May 7, 2024.