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A Crescent Point drilling rig. Photo by Rod Nickel/Reuters files Article content Canadian oil and gas producer Crescent Point Energy Corp said it has agreed to buy Duvernay shale light oil assets in Alberta from oil major Royal Dutch Shell’s Canadian unit for $900 million. The deal comprises $550 million in cash and 50 million shares (valued at $157 million) in Crescent Point Energy common stock. Subject to regulatory approvals, the transaction is expected to close in April 2021. “Divesting these assets underpins Shell’s effort to focus the Upstream portfolio to deliver cash,” said Wael Sawan, upstream director at Shell. “While we believe these assets hold value, the divestment allows us to focus on our core Upstream positions like the Permian Basin, with integrated value chains, thereby building a resilient, lower-risk and less complex portfolio.” The assets generate around 30,000 barrels of oil equivalent per day, with 57 per cent condensate, 35 per cent shale gas and 8 per cent natural gas liquids. “We are excited to add the Kaybob Duvernay asset as a strategic core area to our portfolio, as its significant inventory of high-return locations and free cash flow profile provide an attractive and return enhancing opportunity […]
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