Crescent Point Energy, a Canadian oil and gas company, has announced that it will resume production of its Kaybob Duvernay wells that were previously shut-in due to low oil prices. The company had shut-in approximately 5,000 barrels of oil equivalent per day (boe/d) of production in the second quarter of 2020, but now plans to bring back online around 3,000 boe/d of that production.
The Kaybob Duvernay wells are located in the Kaybob area of Alberta, Canada, and are part of Crescent Point’s overall strategy to focus on high-return, low-cost assets. The company has been working to optimize its portfolio and reduce costs in order to improve its financial position and increase shareholder value.
According to Craig Bryksa, President and CEO of Crescent Point Energy, “We are pleased to be able to bring back online a portion of our Kaybob Duvernay production, which is a high-quality asset with strong economics. This decision is a result of our ongoing efforts to optimize our portfolio and improve our financial flexibility.”
The resumption of production at the Kaybob Duvernay wells is a positive sign for the Canadian oil and gas industry, which has been hit hard by the COVID-19 pandemic and the resulting drop in oil prices. Many companies have had to shut-in production or reduce output in order to cut costs and stay afloat.
However, with oil prices slowly recovering and demand starting to pick up again, companies like Crescent Point are starting to see opportunities to resume production and generate revenue. The company has also been able to reduce its debt levels and improve its liquidity position, which should help it weather any future market volatility.
Overall, the resumption of production at the Kaybob Duvernay wells is a positive development for Crescent Point Energy and the Canadian oil and gas industry as a whole. It shows that companies are starting to adapt to the new market realities and find ways to operate in a more efficient and cost-effective manner. As oil prices continue to recover, we can expect to see more companies resume production and start to generate revenue once again.
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- Source: Plato Data Intelligence.