​Crescent Point boosts 2017 guidance on strong Q2, invests in Utah’s Uinta Basin

Crescent Point Energy is boosting its 2017 production guidance to 174,500 boe/d from 172,000 boe/d based on positive operating results, and reshuffling its asset investments.

Total Q2 average production was 175,615 boe/d, up five per cent from same time last year.

Crescent Point also expanded its position in Utah’s Uinta Basin with US$72.5 million of acquisitions, while selling $93.2 million of non-operated conventional assets in Manitoba.

“Proceeds of these dispositions provide additional financial flexibility and further improve the strength of our balance sheet,” Scott Saxberg, Crescent Point’s president and CEO, told analysts on a conference call.

The Saskatchewan-focused light oil producer is also currently marketing or is in negotiations to dispose of $180 million of other non-core assets and intends to offer up an additional package of similar value later this year.

In its core southern Saskatchewan areas, Crescent Point focused on low-risk, high-return infill development and down-spacing programs in the second quarter.

Its 2017 Saskatchewan waterflood strategy remains centred on implementing what it calls injection control device (ICD) waterflood systems. The Company currently has 40 ICD waterflood systems in place with approximately 10 additional installations planned for the remainder of 2017.

“What excites me about this year is our out-performance and revision upward — it is all organic,” Saxberg said.

In the western portion of Uinta Basin, Crescent Point said it added approximately 80,000 net acres of undeveloped land. The Utah play now represents about 10 per cent of the company's total land holding.

Crescent Point entered this U.S. light oil resource play in late 2012 through acquisition with an eye to transferring its horizontal development expertise to multi-zone areas.

Wells here are demonstrating similar results and returns to Crescent Point's Viewfield Bakken play. Initial production rates in the Castle Peak play through extended-reach horizontals and increased tonnage per stage are upward of 1,000 boe/d in the first 30 days.

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