Crescent Point Energy chief executive Scott Saxberg says better than expected results from the first half of 2012 have resulted in an increase in production guidance.

Photograph by: Gavin Young , Calgary Herald

CALGARY — Light oil producer Crescent Point Energy Corp. said Wednesday it has set its sights on 2012 exit production of 100,000 barrels of oil equivalent per day.

Emboldened by strong drilling results and asset acquisitions made in the first half of the year, the Calgary-based company is raising its exit target to six figures from earlier guidance of 97,500 boe/d, it said while reporting second-quarter results.

Average production is expected to exceed 95,000 boe/d up from earlier predictions of 88,500 boe/d.

“We’ve executed a successful drilling program, our oil production is well-hedged and we are well-positioned as we move into the second half of the year, all of which has allowed us to upwardly revise our production forecasts,” said Scott Saxberg, president and chief executive, in a news release.

The company reported net income rose 55 per cent to $287 million and cash flow was up 24 per cent to $386 million in the three months ended June 30 of this year versus the same period of last year.

Production jumped 47 per cent to 97,000 boe/d — more than offsetting a 17 per cent fall in its average realized price of $72.85 per barrel of oil equivalent.

Crescent Point said in a news release it hopes to make its capital budget of $1.25 billion go further by taking advantage of reduced industry activity to negotiate lower operating costs.

The company is known for its unconventional tight oil plays in Saskatchewan but is also developing emerging plays using horizontal wells and multi-stage hydraulic fracturing in northwestern and southern Alberta and in North Dakota.

In Saskatchewan, it has reported strong results from its waterflood enhanced recovery technology in Bakken and Shaunavon resource plays.

Crescent Point said it expects cash flow this year to come in at $1.47 billion or $4.53 per share, based on a forecast of $94 US per barrel for New York-traded oil, $2.40 per thousand cubic feet for Alberta gas and a Canadian dollar worth 99 cents US.

It said it will increase its current 16,000 boe/d crude oil deliveries through its new Stoughton, Sask., rail facility to win better prices in markets that have been shut out by a crude bottleneck at the Cushing, Okla., pipeline hub.

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