Crescent Point's 'game-changer' buoys Bakken prospects
An old technology with a new wrinkle is a “game-changer” in Saskatchewan’s unconventional light oil plays, Scott Saxberg, chief executive of Crescent Point Energy Corp., said Monday.
He told the company’s annual general meeting the application of water flooding, along with infill drilling, could allow the company to more than double reserves within five years.
“Crescent Point has a dominant position in two of the largest and most economic unconventional resource plays in Western Canada, the Lower Shaunavon and Bakken,” said Saxberg.
“These mainly untapped resource pools provide Crescent Point with over 5,000 drilling locations and the potential to add over 500 million barrels of reserves, which could potentially double our current net asset value.”
Analyst Kyle Preston of Canaccord Adams cautioned that Crescent Point’s water flood strategy is promising, but not necessarily proven in all areas of the Bakken.
“This water flood technology is not really new. What’s new here is applying the water flood to a tight rock reservoir which, to my understanding, hasn’t been done very successfully in the past,” he said.
He pointed out PetroBakken, the second-largest player in the Bakken, doesn’t believe in water flooding.
Preston carries a buy recommendation on Crescent Point with a 12-month target of $46. The Bloomberg consensus of analysts is $47.15.
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