​Crescent Point using cash from growth in Saskatchewan to drive strategy in Utah

Crescent Point Energy CEO Scott Saxberg. Image: Twitter/Scott Saxberg

Crescent Point Energy plans to spend $1.8 billion in 2018, using free cash flow from operations in southern Saskatchewan and North Dakota to support its growth strategy in Utah.

The company says its 2017 drilling program bumped its oil in place in Utah’s Uinta Basin by over 60 percent, to approximately 8.5 billion barrels, increasing its inventory of new drilling locations to 850 from 120 at the end of 2016.

Crescent Point, which exited 2017 with production of 183,000 boe/d, plans to invest 55 percent of its 2018 budget in the Williston Basin (southeast Saskatchewan and North Dakota), 20 percent in Southwest Saskatchewan and 20 percent in Utah. The company expects to increase production to 195,000 boe/d by the end of 2018.

“Each of our core areas are expected to generate growth in 2018,” CEO Scott Saxberg said in a statement.

“Our Williston Basin and southwest Saskatchewan areas continue to generate free cash flow and support our growth strategy in the Uinta Basin. Our 2018 focus in Uinta will include two-mile horizontal wells, multi-well pad drilling for improved efficiencies, new zone development and further delineation on the western portion of the basin.”

Crescent Point also plans to spend $35 million in 2018 on deployment of its injection control device (ICD) waterflood systems, an amount similar to 2017. The company says the tools have doubled water injectivity and increased oil production by 25 percent within its Bakken waterflood in the Williston Basin.

The 2018 budget also includes “investments in climate change initiatives as well as additional remote field monitoring and automation pilots to further improve efficiencies.”