Exploration & Production | Top Story | Deals - Acquisition, Mergers, Divestitures

Crescent Point Snaps Up Williston Basin Player Legacy, $1.5B

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   |    Wednesday,May 27,2015

Crescent Point announced its plans to acquire Legacy Oil + Gas for $1.53 Billion.  

Legacy has approximately 22,000 boe/d of high-netback production, of which more than 15,000 boe/d is from conventional and unconventional plays in Crescent Point’s core southeast Saskatchewan, Manitoba and North Dakota areas.

The assets to be acquired include approximately 1,000 net sections of land, of which approximately 525 net sections are in southeast Saskatchewan. The southeast Saskatchewan lands include approximately 200 net sections in the emerging and highly-economic Midale light oil resource play.

Total consideration for the Legacy Arrangement is approximately $1.53 billion, comprised of approximately 18.97 million Crescent Point common shares and the assumption of approximately $967 million of net debt, estimated as at the time of closing and inclusive of transaction costs.

Scott Saxberg, president and CEO of Crescent Point said: "The Legacy acquisition is aligned with our strategy of acquiring large oil-in-place pools with low current recovery factors. This acquisition improves the long-term sustainability of our business model and our dividend not only through financial accretion and a lower payout ratio, but through the addition of a mix of assets with significant growth potential, low-decline rates and waterflood potential.

The low-cost, high-return Midale assets add yet another layer of top-quartile locations to our drilling inventory and provide us with additional operational flexibility."

Below is a look at the assets according to Legacy's April 2015 Investor Presentation:

Source : Legacy Oil via Petroleum Research     Enlarge