Crescent Point Energy Corp. (NYSE:CPG) Q4 2023 Earnings Call Transcript

Right now, they are extremely happy shareholders and things are going well. We’ll see how this ends up playing out for them and how long they’re looking at holding. But with us right now, good conversation, good dialogue, very happy shareholders. And then we’ll see how this ends up playing out. I don’t expect anything material here to work through that over the next little bit, Travis. But we’re again in dialogue and working through with them.

Operator: Turning now over to Shant Madian for web questions.

Shant Madian: There was a couple of questions there on A&D, which I think you’ve answered through Travis’ question. A question here on Kaybob. Any follow-up well results that you can speak to that continue to give you a little bit more comfort as you step out across the land base?

Craig Bryksa: Yes. So, one of the things we love about Kaybob is just how consistent and repeatable it’s been for us here since we entered the play in March 2021. We most recently brought on another pad that is pushing to the east and to the south of the play. It is in the volatile oil window. And it’s in an area where the previous operator had some, what I would describe as more challenging results. So this really offsets, if you remember our [indiscernible] six pad this year came online within and around that area, in and around that 1,500-ish BOE per day on average well on that pad is around 75%-ish liquids. I’m happy to tell you that that second pad we just brought on is in and around that range. So it’s been on for little over 30 days, flowing at us very strong in and around 1,500 BOE per day per well and right around that 75% liquid.

So it’s a good follow-up to a good result this year in an area where the previous operator had some challenging, maybe results and it really pushes to the South and the East. So excited about that one.

Shant Madian: Similar on the Kaybob, another follow-up there with respect to the development plans within the phase windows. So when you look at the location count that we have between the volatile oil window and the liquids rich, within our 10-year plan? How do you think about the lean gas development within there over that period?

Craig Bryksa: So for us being a liquids company, we’re going to zero in and focus on both the volatile oil window and the liquids rich window here in the near-term over the next both 5 and 10 years. And then as we slowly press to the South and a little bit to the West, you start to get more into that leaner gas, which again still has a decent amount of liquids coming with it as well. So for us both the 5 and 10-year plans really zero in on the volatile oil and liquids, which we’re in and then beyond 10 years is how we start to look as we push into the South and the West. And again, inventory supports that. So no reason to advance any faster.

Shant Madian: Moving to the Montney question here, when we should expect to see results on CPG’s optimal well design on the newly acquired Hammerhead lands? And any other additional follow-up on well results that you could speak to from our recent program?

Craig Bryksa: Sure. So everyone’s aware that deal closed in December 21 of last year. We picked up operations have been running. Since then we are on our first pads right now that are under that new press and point design. We’re doing a way, I would say operations are going really for us on that front. So things look good. That first pad that will get done and completed under our new well design. So again, remember that’s slightly wider spacing, slightly different completion techniques. We’ll be probably mid-June by the time that the pad is completed and online. And then by the time we have results, I would expect some potentially around that Q2, press release. So at the end of July, early August timing on that front. So excited about it though, operations have been going pretty good.

And then as far as follow-up results, we’ve had a few good ones here come on when you look at the Montney position that we picked up and really across the place. So both from the eastern side moving to the west and then pushing down south. So if you think of there’s a 605 pad that has come on over the last 80 days, it’s been online, which is east to the north, sorry, the northeastern position of our land. Those results have been coming in pretty well in and around that 14.50 BOE per day. It’s a little bit gassier over on that side at around 45% liquids, but again, good strong flowing production results on that pad on average is the wells on that. When you look at Gold Creek West, where if everybody’s familiar, that’s where when we did the original Spartan Delta transaction, Spartan Delta had brought on that original 2/9 well that was in that for 2,000-ish BOE per day and 90% oil.