Crescent Point Energy Corp. (NYSE:CPG) Q3 2023 Earnings Call Transcript

Ryan Gritzfeldt: Travis, it’s Ryan. I can take that one. Yes, so really encouraged with those 2 most recent results. We’ve actually done 8 to date now. Those range from 1 milers, 1.5 milers to 2 milers. These last couple, the good thing about them, too, is we’ve gotten our 2-mile cost down to under $3 million so continue to increase the economics on those. And based on that, we have 8 planned in Viewfield next year. And then we also spud our first one in our Shaunavon play here. So probably won’t have results before the end of the year on that Shaunavon well but pretty excited to see what we’ll get there. All of our various reservoir simulations we ran there, we’re kind of doing the same design, 8 legs, 50-meter spacing. So really looking forward to see what we can get in our Shaunavon play.

Travis Wood: Okay. And is the right way to think about this part of the operational strategy, is it more so related to capturing, especially at Viewfield, improving the recovery? Or is it pushing the boundaries of the play and capturing some — maybe some more growth opportunity? Or is it more about the original oil-in-place?

Ryan Gritzfeldt: Yes, I’d say both, Travis. So the first — the reason that we started trying this was in some parts of the play where it’s a little bit thinner but more porous, more permeable, it also had the wet lodge pool above. So frac-ing, you ended up frac-ing into that wet lodge pool and bringing in water. So now with the results we’re seeing, to your point on is it just capturing more resource or is it economics? It’s both. You’re essentially getting, in our view, almost double the EUR at a little bit less capital. So obviously, your economics look a lot better than doing it with the — with our older style 8 wells per section and frac-ing. So yes, hopefully, that answers your question there. And like I said, we’ll continue to drill.

We have 8 wells planned for next year. And yes, I don’t think this is something that we’ll add rigs to get to. I think it just helps kind of continue to keep our Saskatchewan production and that decline rate manageable and adds to our years of drilling inventory versus adding rigs to get after it. So that’s our current plan right now with the results we see.

Travis Wood: Okay, perfect. That makes sense.

Operator: There are no further questions at this time at the phone line. I will now hand over to Mr. Craig Bryksa. Please continue.

Craig Bryksa: Shant, do you want to moderate from the webcast?

Shant Madian: Yes. Thanks, Craig. So a couple of questions coming from the online portion. First is based on the success we’ve been having on the Montney well results, one of the shareholders was just asking if we can provide a little bit more color on our modified well design or frac technology that we’ve been using in the Montney, I guess, specifically around those elevator fracs.

Craig Bryksa: I can give a little bit of color and then Ryan can add some comments. So extremely happy with how the operations have been going here in the Montney over the last few months since we closed that deal. As far as operations go, we’re on — currently on our fourth pad of drilling and drilling has been going very well. One of the things, when you look at our position within the Montney from a geological aspect, is we’re in the normal pressured window within the play. We’re in the volatile oil window and we’re on the normal pressured position within that play. And then when you look across the benches from the Montney C, the B and the A — into the A, there’s no real change in the pressure gradient between those different benches.