Crescent Point buys CanEra Energy in $1.1B deal


CALGARY — Fast-growing intermediate Crescent Point Energy Corp. has struck a $1.1-billion deal designed to sew up its corner of the latest hot Saskatchewan tight oil play, the Torquay.

The deal announced after markets closed on Wednesday to buy private CanEra Energy Corp. comes just nine days after Crescent Point announced a significant discovery at Flat Lake in southeastern Saskatchewan.

It reported April 14 that it had taken its Torquay formation production from zero to 5,100 barrels of oil equivalent per day in just 12 months by drilling 36 horizontal wells.

Crescent Point, which considers the Bakken and Shaunavon plays of Saskatchewan its core holdings, said it will pay $192 million in cash, issue 12.9 million new shares and assume $348 million in debt to buy CanEra, a Calgary-based private company.

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