Crescent Point restores additional Kaybob Duvernay production, plans rig addition

May 12, 2023
Crescent Point Energy Corp., Calgary, continues to restore Kaybob Duvernay production previously shut in due to recent Alberta wildfires, and plans to add a second rig to the area in this year’s fourth quarter.

Crescent Point Energy Corp., Calgary, continues to restore Kaybob Duvernay production previously shut in due to recent Alberta wildfires, and plans to add a second rig to the area in this year’s fourth quarter.

The operator has now restored 85% of the 45,000 boe/d that had been temporarily shut in and continues to monitor the wildfires, which have not yet fully stabilized  (OGJ Online, May 10, 2023).

In an operations update May 12, the company said its 2023 annual average production guidance of 160,000-166,000 boe/d, weighted 75% to oil and liquids, currently remains unchanged because of a strong start to the year. 

Average production during first-quarter 2023 was 139,280 boe/d, comprised of about 80% oil and liquids.

In the Kaybob Duvernay, Crescent Point recently brought on-stream its seventh fully operated multi-well pad, which generated an average 30-day initial production (IP30) rate of over 1,000 boe/d per well (73% condensate, 8% NGLs, 19% shale gas). The pad is currently exceeding booked type well expectations in the area, the company said. A second rig is expected to be added in this year’s fourth quarter.

Late in the first quarter, Spartan Delta Corp. brought on stream a single well in the Gold Creek West area of the Alberta Montney play, which achieved an average 30-day IP30 rate of about 1,900 boe/d (87% light crude oil, 2% NGLs, 11% shale gas). The well is currently exceeding booked type well expectations in the area, the company said.

On May 10, Crescent Point closed on its acquisition of Alberta Montney assets from Spartan, which includes production of 378,000 boe/d and over 20 years of inventory, the company said (OGJ Online, Mar. 28, 2023). Crescent Point plans to drill about 15 wells in the Alberta Montney through the remainder of 2023.

Financials

The company’s 2023 capital expenditures guidance remains unchanged at $1.15-1.25 billion (Can.).

In first-quarter 2023, development capital expenditures, which included drilling and development, facilities, and seismic costs, totaled $314.2 million (Can.).

The company had net income of $216.7 million (Can.) for the quarter.