/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE
CALGARY, Nov. 29, 2012 /CNW/ - 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
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
"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.
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
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.
President and Chief Executive Officer
Crescent Point shares are traded on the Toronto Stock Exchange under the
Crescent Point Energy Corp.
Suite 2800, 111-5th Avenue S.W.
Calgary, AB., T2P 3Y6
SOURCE: Crescent Point Energy Corp.
For further information:
Greg Tisdale, Chief Financial Officer, or Trent Stangl, Vice President Marketing and Investor Relations.
Telephone: (403) 693-0020
Toll free (US & Canada): 888-693-0020
Fax: (403) 693-0070