November 14, 2019
Torys is representing Crescent Point with a team that includes Derek Flaman, Amy Maginley and Tanis Makowsky (corporate/oil & gas), Omar Wakil (competition), Craig Maurice (tax) and Tom Stevenson (employment).
On November 14, 2019, Crescent Point Energy Corp. ("Crescent Point") announced that it entered into a definitive agreement to sell certain associated gas infrastructure assets in Saskatchewan to Steel Reef Infrastructure Corp. ("Steel Reef") for total cash consideration of C$500 million. The assets include nine natural gas gathering and processing facilities and two gas sales pipelines currently in operation within Saskatchewan with a combined total throughput capacity of more than 90 MMcf/d.
Under the terms of the agreement, Crescent Point will enter into certain long-term take-or-pay commitments with Steel Reef in exchange for Steel Reef, who will operate the assets, granting Crescent Point processing rights at the facilities.
Further, as part of the agreement, Steel Reef has committed to fund an upcoming 12 MMcf/d expansion of one of the gas processing facilities. Steel Reef's cost to construct this expansion is estimated to be approximately C$30 million, which will be in addition to the purchase price of C$500 million. Work on the expansion is expected to begin in 2020 and be completed within approximately 12 to 18 months following closing of the sale.
It is anticipated that the sale will close in the first quarter of 2020.
Further information can be found on Canada Newswire’s website.
Crescent Point, based in Calgary, Alberta, is a leading North American oil producer focused on the development of high-return resource plays, including Viewfield Bakken, Shaunavon, Flat Lake and East Shale Duvernay.
Steel Reef is a privately held mid-stream company targeting strategic small and mid-sized infrastructure projects focused in the Western Canadian Sedimentary Basin.