Crescent Point Energy to cut spending, boost output next year

Thu Dec 6, 2012 12:12pm EST
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* 2013 capex set at C$1.35 bln vs C$1.4 bln in 2012

* Sees 2013 production 112,000 boepd, up from 97,000 boepd

* Shares drop 2.2 pct

CALGARY, Alberta, Dec 6 (Reuters) - Crescent Point Energy Corp, which concentrates on producing oil from unconventional fields, notably the Bakken shales of southern Saskatchewan, said on Thursday it expects lower spending next year even as it boosts output by 15 percent.

The company, Canada's No. 4 independent oil producer, set a 2013 capital spending budget of C$1.35 billion ($1.36 billion), down from an expected C$1.4 billion for the current year.

Even with the spending cut, Crescent Point said it expects to raise 2013 daily production to an average of 112,000 barrels of oil equivalent per day, up from a forecast 97,000 boepd for 2012.

The company, which made four acquisitions this year to add properties in Western Canada and Utah, said it will concentrate on developing its properties in 2013.

"We will focus on organic growth and the integration of assets from key acquisitions," Scott Saxberg, the company's chief executive, said in a statement. "The 2013 budget is focused on the development of our major oil resource plays in the Bakken, Shaunavon (fields in Saskatchewan) and Uinta Basin (in Utah) and on enhancing our portfolio of emerging resource plays."

The company said C$1.17 billion of its 2013 spending will be allocated to drilling on its properties, with 455 wells planned. The remainder will go to infrastructure, land acquisition and seismic studies.

Crescent Point shares were down 83 Canadian cents at C$36.17 at midday on Thursday on the Toronto Stock Exchange. The shares have fallen 17 percent over the past 12 months, while the exchange's energy index dropped 10 percent over the same period.