April 23, 2014 - 12:43 PM
CALGARY - Crescent Point Energy Corp. (TSX:CPG) has signed an agreement to buy CanEra Energy Corp., a privately held oil and gas producer in southeast Saskatchewan, in a deal valued at $1.1 billion, including debt.
CanEra's assets include a large land position in the Torquay area in Saskatchewan, where Crescent Point is active, and production of approximately 10,000 barrels of oil equivalent per day.
Under the deal, Crescent point has agreed to pay 12.9 million shares, $192 million in cash and assume $348 million in debt.
With the acquisition, Crescent said it expects its production and funds flow from operations to be higher than earlier expected.
The company said it expects to finish the year with production of 145,000 boepd, up from earlier guidance for 135,000. Average daily production is expected to be 133,000 boepd, up from 126,500.
Crescent Point's funds flow from operations for 2014 are expected to increase by six per cent to $2.38 billion.
News from © The Canadian Press, 2014