In this 9:51 minute video filmed in the third quarter of 2008, senior management team members discuss the business plan and opportunities for Crescent Point, and, in particular, its SE Saskatchewan Bakken resource play.
Metrics discussed in the video relate to the second and third quarters of 2008. As of early 2009, Crescent Point is producing over 18,000 boe/d from the Bakken play and Shelter Bay is producing more than 4,000 boe/d for a combined total of more than 22,000 boe/d. The Viewfield gas plant has been expanded to an inlet capacity of 18 mmcf/d with a further expansion to 30 mmcf/d being planned for 2010.
Rates of return on typical Bakken wells in mid 2008 were greater than 500% with payout in just a few months. At current price levels and drilling costs, economics are as follows:
- At US$40 per barrel WTI and a US$0.75 exchange rate, rates of return are 98% with a payout period of approximately 12 months
- At US$50 per barrel WTI and a US$0.75 exchange rate, rates of return are 185% with a payout period of approximately 8½ months
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