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Dec 9 (Reuters) – Canadian oil and gasoline producer Crescent Level Vitality Corp (CPG.TO) mentioned on Friday it can purchase Kaybob Duvernay property in Alberta from Paramount Assets Ltd (POU.TO) for C$375 million ($275.49 million) in money.
The deal bolsters Crescent’s stock within the Duvernay play to over 20 years, with its land place rising to about 400,000 internet acres.
Calgary, Alberta-based Crescent added it plans to develop its Kaybob Duvernay asset to over 55,000 barrels of oil equal per day (boepd) inside its five-year plan, from 35,000 boepd in 2022.
The property embody about 130 internet drilling areas throughout practically 65,000 internet acres of land.
To mirror the deal, Crescent raised its 2023 annual common manufacturing steerage to between 138,000 boepd and 142,000 boepd from a earlier outlook of between 134,000 boepd and 138,000 boepd.
The power firm has additionally elevated its first-quarter base dividend by 25% to 10 Canadian cents per share.
The deal might be funded via current credit score amenities and is predicted to shut throughout January 2023, Crescent mentioned.
Final yr, Crescent bought Kaybob Duvernay property from oil main Royal Dutch Shell’s unit for C$900 million.
U.S.-listed shares of Crescent are up 1.1% at $6.7 premarket.
($1 = 1.3612 Canadian {dollars})
Reporting by Ankit Kumar; Enhancing by Krishna Chandra Eluri
Our Requirements: The Thomson Reuters Trust Principles.
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