Crescent Point completes Lightstream acquisition
October 6, 2014
Lightstream Resources (formerly Petrobakken Energy) has announced the completion of its previously announced agreement with Crescent Point Energy to sell the remaining assets in Lightstream's southeast Saskatchewan conventional business unit for $378.4 million.
Proceeds include $375 million in cash and three key parcels of Bakken rights valued at $3.4 million, which will enable Lightstream to accelerate the expansion the Creelman enhanced oil recovery project.
According to Lightstream, further positive attributes of the transaction include: the elimination of $38.5 million of future abandonment and reclamation liabilities on its balance sheet, thanks to the sale of approximately 450 net wells and associated facilities; a reduction in its capital expenditure guidance for 2014 by $15 million; and the elimination of future regulatory compliance costs associated with sour gas venting at these properties.
Lightstream applied the $375 million to reduce corporate debt, which stands at approximately $1.5 billion. The amount drawn on Lightstream's secured term credit facility is now approximately $500 million, leaving $650 million of available liquidity under the facility.
“With our balance sheet strengthened and divestiture targets exceeded, we remain focused on operational efficiency and the effective deployment of capital in our core operating areas,” Lighstream said in a press release. “We currently have three rigs drilling in our Cardium business unit, and a fourth rig active in our Bakken business unit.”
Lighstream is also on target to commence natural gas injection in two further patterns in its Bakken enhanced oil recovery initiative before year end.
Crescent Point said it has acquired high-netback, low decline conventional oil production of approximately 3,300 barrel of energy per day, and 76 net sections of land that share a common border with Crescent Point’s existing land base in southeast Saskatchewan and Manitoba.
The company also acquired an additional 44 net sections of undeveloped fee title land, much of which is located in an exciting new area that Crescent Point believes holds significant exploratory potential.
@ 2014 Sasklifestyles
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