CALGARY, Alberta, November 29, 2012 /PRNewswire/ --
/NOT FOR DISTRIBUTION TO THE U.S.
NEWSWIRE OR FOR DISSEMINATION IN THE
UNITED STATES/
Crescent Point Energy Corp. ("Crescent Point" or the "Company")
(TSX: CPG) is pleased to report that the previously announced
acquisition (the "Ute Acquisition") of Ute Energy Upstream Holdings
LLC ("Ute") closed today. With closing of the Ute Acquisition,
Crescent Point acquires production of approximately 7,800 boe/d and
establishes a new core area in the Uinta Basin light oil resource
play in northeast Utah.
Other key attributes of the Ute assets acquired include:
- 55.1 million boe of proved plus probable and 37.6 million boe
of proved reserves, as assigned by independent engineers utilizing
NI 51-101 reserve definitions and effective November 30, 2012;
- Approximately 270 net sections of land in the centre of the
Uinta Basin resource play, of which 245 net sections are
undeveloped and more than 150 net sections are governed by
Exploration and Development Agreements;
- More than 1,000 net internally identified low-risk drilling
locations, of which 253 net proved plus probable locations have
been booked to reserves pursuant to an independent engineering
report prepared in compliance with NI 51-101;
- More than 400 net of the internally identified drilling
locations are in the Randlett
area, which is 100 percent operated, and are low-risk vertical
infill wells; and
- 25 operated wells drilled but not yet completed that should
provide for the addition of approximately 1,000 boe/d of annualized
production in 2013.
"The Ute Acquisition adds another significant resource play to
our portfolio," said Scott Saxberg,
president and CEO of Crescent Point. "These assets have all of the
characteristics that we look for in a light oil resource play."
The Uinta Basin has been producing light oil since the 1950s
and, in recent years, has experienced a resurgence in activity with
the application of new drilling and completion techniques. Through
the application of infill drilling and multi-stage fracture
stimulation to both vertical and horizontal oil wells, Crescent
Point believes greater potential can be unlocked in the resource
play. To develop and exploit the multiple zones in the play,
Crescent Point expects to drill both vertical and horizontal wells
and to increase well density.
Crescent Point believes the Uinta Basin has low-risk production
growth potential over the coming years and that it has similar
upside exposure as the Bakken and Shaunavon resource plays in the early stages
of their development. This light oil resource play represents the
Company's third-largest resource play in terms of production and
reserves.
Taking the completion of the Ute Acquisition into account, as
well as consolidation acquisitions that closed in fourth quarter
2012, the Company's average daily production in 2012 is expected to
be more than 97,000 boe/d and its 2012 exit production rate is
expected to be more than 109,000 boe/d.
"Our successful drilling, facilities' optimization and
waterflood results this year have positioned us well for a strong
start to 2013, as we are currently on track to meet or exceed our
targets for 2012," said Scott
Saxberg, president and CEO of Crescent Point.
The Company expects to release its 2013 capital expenditure
plans in early December 2012.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute
forward-looking statements. All forward-looking statements are
based on Crescent Point's beliefs and assumptions based on
information available at the time the assumption was made. The use
of any of the words "could", "should", "can", "anticipate",
"expect", "believe", "will", "may", "projected", "sustain",
"continues", "strategy", "potential", "projects", "grow", "take
advantage", "estimate", "well-positioned" and similar expressions
are intended to identify forward-looking statements. By their
nature, such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Crescent Point believes that the
expectations reflected in those forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included in this report should not be unduly relied upon. These
statements speak only as of the date of this press release or, if
applicable, as of the date specified in those documents
specifically referenced herein.
In particular, this press release contains forward-looking
statements pertaining to the following: drilling locations and
reserves associated with the Ute assets; the anticipated benefits
of the Ute Acquisition; expected production growth from Ute wells
drilled, but not yet completed; the expected impact of infill
drilling and multi-stage fracture stimulation in the Uinta Basin;
the Company's projected average daily and exit production for 2012;
and the expected release of the Company's 2013 capital expenditures
plans.
By their nature, such forward-looking statements are subject to
a number of risks, uncertainties and assumptions, which could cause
actual results or other expectations to differ materially from
those anticipated, including those material risks discussed in our
annual information form under "Risk Factors" and our Management's
Discussion and Analysis for the year ended December 31, 2011, under the headings "Risk
Factors" and "Forward-Looking Information." The material
assumptions are disclosed in the Management's Discussion and
Analysis for the year ended December 31,
2011, under the headings "Dividends", "Capital
Expenditures", "Decommissioning Liability", "Liquidity and Capital
Resources", "Critical Accounting Estimates", "Future Changes in
Accounting Policies" and "Outlook," and in Management's Discussion
and Analysis for the period ended September
30, 2012, under the headings "Dividends", "Capital
Expenditures", "Decommissioning Liability", "Liquidity and Capital
Resources" and "Outlook." The actual results could differ
materially from those anticipated in these forward-looking
statements as a result of the material risks set forth under the
noted headings, which include, but are not limited to: financial
risk of marketing reserves at an acceptable price given market
conditions; volatility in market prices for oil and natural gas;
delays in business operations, pipeline restrictions, blowouts; the
risk of carrying out operations with minimal environmental impact;
industry conditions including changes in laws and regulations
including the adoption of new environmental laws and regulations
and changes in how they are interpreted and enforced; uncertainties
associated with estimating oil and natural gas reserves; economic
risk of finding and producing reserves at a reasonable cost;
uncertainties associated with partner plans and approvals;
operational matters related to non-operated properties; increased
competition for, among other things, capital, acquisitions of
reserves and undeveloped lands; competition for and availability of
qualified personnel or management; incorrect assessments of the
value of acquisitions and exploration and development programs;
unexpected geological, technical, drilling, construction and
processing problems; availability of insurance; fluctuations in
foreign exchange and interest rates; stock market volatility;
failure to realize the anticipated benefits of acquisitions,
including the Ute Acquisition and the other consolidation
acquisitions; general economic, market and business conditions;
uncertainties associated with regulatory approvals; uncertainty of
government policy changes; uncertainties associated with credit
facilities and counterparty credit risk; and changes in income tax
laws, tax laws, crown royalty rates and incentive programs relating
to the oil and gas industry.
Barrels of oil equivalent ("boes") may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 Mcf
: 1 Bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead.
Additional information on these and other factors that could
affect Crescent Point's operations or financial results are
included in Crescent Point's reports on file with Canadian
securities regulatory authorities. Readers are cautioned not to
place undue reliance on this forward-looking information, which is
given as of the date it is expressed herein or otherwise and
Crescent Point undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, unless required to do so
pursuant to applicable law.
This news release is not for dissemination in the United States or to any United States news services. The shares
of Crescent Point have not and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold in the United
States or to any U.S. person except in certain transactions
exempt from the registration requirements of the U.S. Securities
Act and applicable state securities laws.
Crescent Point is a conventional oil and gas producer with
assets strategically focused in properties comprised of
high-quality, long-life, operated light and medium oil and natural
gas reserves in United States and
Canada.
CRESCENT POINT ENERGY CORP.
Scott Saxberg,
President and Chief Executive Officer
Crescent Point shares are traded on
the Toronto Stock Exchange under the symbol CPG.
For further information:
Greg Tisdale, Chief Financial
Officer, or Trent Stangl, Vice
President Marketing and Investor Relations.
Telephone: +1(403)693-0020
Toll free (US & Canada):
888-693-0020
Fax: +1(403)693-0070
Website: http://www.crescentpointenergy.com
(CPG.)