Spartan Delta has completed the $1.26bn (C$1.7bn) sale of its oil and gas assets in the Gold Creek and Karr Montney regions in Alberta, Canada, to Crescent Point Energy.
The deal, first announced in March this year, added 600 new Montney locations to Crescent Point’s portfolio.
The acquired assets, located adjacent to Crescent Point’s Kaybob Duvernay assets, have a production capacity of 38,000 barrels of oil equivalent per day.
Crescent Point noted that the deal aligns with its long-term strategy and will further extend its drilling inventory to 15 years.
The deal will be immediately accretive to Crescent Point’s adjusted funds flow and excess cash flow per share by 20%.
Furthermore, Spartan also announced that it will transfer its Simonette, Pouce Coupe and Flatrock assets to its new subsidiary, Logan Energy, on 20 June 2023.
Spartan added that it will continue to develop its liquids-rich assets in the Deep Basin to boost return for its shareholders.
Crescent Point also offered an update on the impact of the Alberta wildfires.
The oil and gas company, which curtailed production due to the wildfires, has restored approximately 75% of the production with no damage reported to its assets.
It plans to fully restore the remaining production “once it is safe to do so”.
The company also revealed that its production and assets associated with the Montney acquisition were not affected by the wildfires.