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Crescent Point to sell Uinta Basin, Saskatchewan assets for C$912M

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Crescent Point to sell Uinta Basin, Saskatchewan assets for C$912M

Crescent Point Energy Corp. entered into agreements to sell all of its Uinta Basin assets and some of its southeast Saskatchewan conventional assets for approximately C$912 million in cash.

In total, the company would sell 27,000 barrels of oil equivalent per day of upstream assets, according to a Sept. 3 news release. The deals would improve Crescent Point's net debt to C$2.75 billion, from C$4.40 billion, by the end of the year.

The Calgary, Alberta-based company struck a purchase and sale deal with a private operator to divest its entire Uinta Basin asset position for about C$700 million. The assets cover approximately 350 net sections of undeveloped land and are forecast to produce 20,000 boe/d, of which 75% is crude oil, in 2020, before royalties. The assets also include proved plus probable reserves of 123.1 million boe and proved developing producing reserves of 29.5 million boe.

The southeast Saskatchewan assets include current production of about 7,000 boe/d, of which 70% is crude, and proved plus probable reserves of 49.2 million boe. The reserves for both the Uinta Basin and Saskatchewan assets are based on the company's independent engineers' evaluation and price forecast as of Dec. 31, 2018.

"The sale of the Uinta Basin and certain conventional assets is accretive for our shareholders and aligned with the key criteria we established for our asset portfolio," Crescent Point President and CEO Craig Bryksa said. The deal would also help the company execute its share repurchase program, which has about C$100 million budgeted for the rest of the year.

The Uinta Basin deal is scheduled for completion in October, while the Saskatchewan deals are expected to close late in the third quarter.

BMO Capital Markets and CIBC Capital Markets served as financial advisers and Tudor Pickering Holt & Co. acted as strategic adviser for the Uinta Basin deal. National Bank Financial Inc. and Scotiabank acted as financial advisers for the Saskatchewan deals.