Crescent Point to increase spending, invest in Saskatchewan production boost in 2017

Crescent Point to increase spending, invest in Saskatchewan production boost in 2017

By Deborah Jaremko

Dec. 7, 2016, 7:29 p.m.

http://www.jwnenergy.com/article/2016/12/crescent-point-increase-spending-invest-saskatchewan-production-boost-2017/

Crescent Point Energy is increasing its capital spending plan in 2017 to $1.45 billion, up from $1.1 billion this year. About 25 percent of that spend will go to the Viking and Shaunavon resource plays in southwest Saskatchewan.

The remainder of the capital expenditure will go primarily to operations in the Williston and Uinta Basins.

“For 2017, approximately $1.29 billion, or 89 percent of the budget, has been allocated to drilling and development activities, including the drilling of approximately 670 net wells,” the company says.

“The remaining $160 million, or 11 percent of the budget, has been allocated to infrastructure and seismic investments across its core areas. Crescent Point also plans to continue investing in long-term growth objectives, including its new play development, to further build on the company’s success during 2016.”

Crescent Point is further ahead in its 2016 program than expected, says Crescent Point president and CEO Scott Saxberg.

“We’ve had a very successful 2016 operationally and are ahead of our budgeted December exit production of approximately 167,000 boe/d,” Saxberg said in announcing the 2017 budget.

“We also increased our drilling inventory this year by approximately 1,000 new internally identified drilling locations, which was supported by our new play development program. This more than replaces our 2016 drilling program and provides us with over 12 years of drilling inventory to continue our long-term growth.”

The bulk of next year’s spending will go to the Williston Basin, where the company will invest 51 percent of its budget and plans to increase production of about 102,500 boe/d currently by about five percent.

In southwest Saskatchewan, Crescent Point will spend about 25 percent of its budget with an eye to increase production by about ten percent from current volumes of about 39,000 boe/d.

The company says it will be “considerably more active” in the Uinta Basin next year, based on recent strong drilling results. Crescent Point has allocated 18 percent of its 2017 capex to Uinta, planning a 50 percent production increase next year from current rates of about 12,500 boe/d.

Waterfloods will continue to be a focus, the company says, where it plans to increase efficiency and continue to implement and test its “newest technology breakthroughs.”

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on December 8, 2016, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

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