Crescent Point Energy Corp CPG-T +2.37%increase said on Tuesday it would acquire Spartan Delta Corp’s SDE-T -0.07%decrease oil and gas assets in Alberta, for $1.7-billion to expand in the Monteny region, one of North America’s top shale plays.
The deal would immediately add to its excess cash flow per share by 20 per cent, the company said.
The Canadian energy sector has seen a rise in deal-related activity over the past year as companies benefited from higher oil prices amid a supply crunch.
The company said the newly acquired assets are adjacent to its Kaybob Duvernay assets that it bought last December.
Crescent added that the acquisition adds 600 Montney locations in Alberta, or over 20 years of premium drilling inventory.
Calgary-headquartered Crescent said the assets add production capacity worth 38,000 barrels of oil equivalent per day to its portfolio.
The deal is expected to close during the second quarter of 2023.
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