Crescent Point to buy Spartan Delta Corp.'s Montney assets in $1.7 billion deal

A pumpjack draws out oil and gas from a well head as the sun sets near Calgary, Alta., Sunday, Oct. 9, 2022. (THE CANADIAN PRESS/Jeff McIntosh)

Crescent Point Energy Corp. says it has reached a deal to buy Spartan Delta Corp.'s Montney oilfield assets in Alberta for $1.7 billion.

The all-cash deal will see Crescent Point acquire 600 drilling locations in the Montney shale play of northwest Alberta, one of the largest unconventional petroleum plays in North America.

Calgary-based Crescent Point says the deal will add 38,000 barrels of oil equivalent per day to its production capacity.

The company says the deal will increase Cresent Point's excess cash flow by 20 per cent within the first year of its closing.

The company says the assets it is acquiring are also adjacent to the Kaybob Duvernay assets it bought last year.

The deal is subject to regulatory approvals and is expected to close in the second quarter.

This report by The Canadian Press was first published March 28, 2023.