Low oil prices continuing to contribute to industry consolidation
CALGARY—Crescent Point Energy Corp. has closed on its $258 million acquisition of Swan Hills, Alta., light oil producer Coral Hill Energy Ltd. The acquisition was announced last month just days after Calgary-based Crescent Point closed on its $1.53 billion Legacy Oil + Gas Inc. deal.
Crescent Point agreed to buy Coral Hill for $258 million in shares. The two companies were partners in an oil-in-place pool located in west central Alberta, and the purchase was part of a strategic consolidation.
The deal with boost Crescent Point’s productive capacity by approximately 3,200 barrels of oil per day.
“The Coral Hill acquisition consolidates the Company’s current position in the Swan Hills Beaverhill Lake resource play and enhances the long-term strategic value of its assets by providing the Company with full operatorship, control over pace of development and an increased position in the core of the play,” the company said.
Last week, the sustained downturn in oil prices led the Calgary-based firm to cut its capital expenditure budget and dividend.