Thursday, November 8, 2012

Crescent Point to buy Ute Energy for $784M

Here is a Reuters article looking at one of the oil and gas industry transactions in the Uintah Basin. New production technologies in the oil and gas industry have completely revitalized the nation’s energy fields, in the processes setting the stage for the Uintah Basin to be a more active energy area than ever before.

Crescent Point Energy Corp, Canada's No. 4 independent oil-exploration company, said on Thursday it will buy privately held oil and gas producer Ute Energy Upstream Holdings LLC for $784 million in cash to gain oil production in the Uinta basin in northern Utah.

The company said the acquisition, set to close at the end of the month, brings additional oil and gas production of 7,800 barrels of oil equivalent a day from proved and probable reserves of 55.1 million barrels of oil equivalent.

Crescent Point, which has focused primarily on producing oil from unconventional fields such as the Bakken shale-oil region of Saskatchewan, said its new Utah lands have the potential to boost production using multi-stage hydraulic fracturing on both vertical and horizontal wells.

The company said that adding Ute's production will raise its average output in 2012 to 97,000 barrels per day from its earlier estimate of 95,000 bpd. Reuters