Crescent Point raises 2013 production forecast to 118,500 boepd
CALGARY, Alberta Oct 17 (Reuters) - Crescent Point Energy Corp, Canada's No. 3 independent oil producer, on Thursday raised its 2013 average daily production forecast to 118,500 barrels of oil equivalent per day from 117,500 boepd, having beaten targets all year.
The company, which concentrates on producing oil from unconventional fields, notably the Bakken shales of southern Saskatchewan, exceeded its 2013 exit production target of 119,000 boepd in September.
Crescent Point shares rose 1.2 percent on the Toronto Stock Exchange to C$39.49.
"CPG continues to demonstrate strong organic production growth through the drill bit. We estimate the company will grow its production this year by at least 10 percent from year-end 2012," BMO Capital Markets analyst Gordon Tait said in a note.
Crescent Point Energy president and CEO Scott Saxberg said production was boosted by a successful organic drilling programme, outperformance in waterflood areas where water is injected to increase pressure in wells, and cementing liners in horizontal wellbores.
By the end of the third quarter of 2013 Crescent Point had spent approximately $1.25 billion in capital development. Details of the 2014 capital budget will be released in early December.
"Given our strong production results to date and the depth of our high rate-of-return inventory, along with robust oil prices, we are looking at adding additional capital in the fourth quarter and subsequently increasing our exit production guidance, which would provide a strong start to 2014," Saxberg said.
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