Crescent Point Energy Trust announces investment in a privately held Bakken growth company and a strategic Bakken light oil acquisition



    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICES/

    CALGARY, Jan. 14 /CNW/ - Crescent Point Energy Trust ("Crescent Point" or
the "Trust") (TSX: CPG.UN) is pleased to announce that the Board of Directors
of the Trust has unanimously approved the Trust's investment in Shelter Bay
Energy Inc. ("Shelter Bay" or the "Company"), a private Bakken light oil
growth company. Shelter Bay, which will be managed through a Technical
Services Agreement with Crescent Point, will accelerate development of the
Bakken light oil resource play in southeast Saskatchewan and follow a similar
business plan to the Trust to develop, exploit and acquire light oil and
natural gas properties in western Canada. Crescent Point will initially invest
up to $60 million in Shelter Bay, which will be financed from available lines
of credit and will represent a 20 percent interest in the Company.
    Crescent Point is also pleased to announce that it has entered into an
agreement (the "Agreement") with Landex Petroleum Corp. ("Landex"), a private
oil and gas company, to acquire all of its issued and outstanding shares by
way of plan of arrangement (the "Arrangement") for total consideration of
approximately $310 million, which includes the assumption of $16 million of
net debt. Under the terms of the Agreement, Landex shareholders will receive a
maximum of $295 million cash and up to $75 million of trust units based on an
exchange rate of 0.632 trust units for each Landex share.
    Crescent Point expects that, prior to the closing of Landex, the
Agreement will be amended and restated (the "Amended Agreement") such that
Shelter Bay will agree to complete the acquisition of Landex pursuant to the
Arrangement. Under the expected terms of the Amended Agreement, Landex
shareholders would be expected to receive a maximum of $275 million cash, up
to $75 million of trust units based on an exchange rate of 0.632 trust units
for each Landex share, and a minimum of $20 million to a maximum of
$60 million of Shelter Bay shares.
    Under the expected terms of the Amended Agreement, Crescent Point would
acquire the non-Bakken assets of Landex, which are producing approximately
1,500 boe/d, for $80 million and Shelter Bay would acquire the Bakken assets
of Landex, which are producing approximately 2,500 boe/d, for $230 million,
for a combined consideration of $310 million.
    The Boards of Directors of Crescent Point and Landex have unanimously
approved the Agreement and management and directors of Landex representing
more than 74 percent of the outstanding shares have entered into hard lock up
agreements with Crescent Point pursuant to which they have agreed to
irrevocably tender their shares to the Crescent Point offer. The Arrangement
is subject to Landex shareholder approval and is expected to close in
mid-March 2008.

    SHELTER BAY STRATEGIC RATIONALE AND FARMIN AGREEMENT

    Crescent Point continues to execute its business plan of creating
sustainable value added growth in reserves, production and cash flow through
management's integrated strategy of acquiring, exploiting and developing high
quality, long life, light oil and natural gas properties in western Canada.
    The Trust is the dominant player in the Bakken light oil resource play in
southeast Saskatchewan, the largest emerging conventional oil play in western
Canada. Crescent Point believes the Viewfield Bakken play is the second
largest conventional oil play ever discovered in western Canada, containing an
estimated 3.0 billion barrels of Original Oil in Place ("OOIP"). Bakken oil
reserves are high quality, consisting of 42 degree API light sweet oil and
liquids rich associated gas. Crescent Point's third quarter 2007 Bakken
netback was CDN$62.71 per boe.
    Crescent Point is currently the dominant producer in the southeast
Saskatchewan Bakken resource play with more than 12,000 boe/d of production.
The Trust also has the largest undeveloped land base in the play, with 360 net
sections of undeveloped Bakken land and more than 1,000 net low risk Bakken
drilling locations representing over 10 years of inventory.
    As part of its commitment to Shelter Bay, Crescent Point will farmout to
the Company 22 net sections of its inventory of 360 net undeveloped Bakken
sections. Under the terms of the farmout agreement, Crescent Point will retain
interests in up to 50 percent of the lands and production, earning cash flow
and reserves on these sections and increasing the Trust's net asset value with
limited capital requirements. Shelter Bay is expected to drill up to 40 gross
wells on these farmin lands in 2008 and a further 40 gross locations in 2009.
    Through the Technical Services Agreement with Crescent Point, Shelter Bay
is expected to lever off the Trust's technical expertise, existing
infrastructure and dominant Bakken position to acquire additional land and
production in the Bakken play and pursue acquisitions and growth in the Bakken
and, potentially, in other Crescent Point core areas. Crescent Point's
ownership in the Company will provide additional exposure to Shelter Bay's
growth potential.

    SHELTER BAY STRUCTURE

    Shelter Bay is a private corporation and will be managed through a
Technical Services Agreement with Crescent Point. Shelter Bay will be governed
by an independent Board of Directors, which at closing of the Shelter Bay
financing is expected to include four independent members and three members
from Crescent Point (Peter Bannister, Scott Saxberg and Greg Tisdale). The
Company will establish Audit and Reserves committees and will utilize legal
and audit advisors independent of Crescent Point.
    Under the Technical Services Agreement, management structure of Shelter
Bay is expected to be as follows: Scott Saxberg (CEO of both Shelter Bay and
Crescent Point), C. Neil Smith (President of Shelter Bay, Vice President,
Engineering and Business Development of Crescent Point), Ken Lamont (CFO of
Shelter Bay, Treasurer and Controller of Crescent Point), Tamara MacDonald
(VP, Land of Shelter Bay, VP Land of Crescent Point), Ryan Gritzfeldt (VP
Production of Shelter Bay, Engineering Manager of Crescent Point) and Derek
Christie (VP Exploration of Shelter Bay, Manager, Geology of Crescent Point).
    Under Canadian Generally Accepted Accounting Principles, financial and
operating results of Shelter Bay are not expected to be consolidated into
Crescent Point's financial and operating results. Accordingly, Crescent
Point's investment in Shelter Bay is expected to be reported as an equity
investment in the Trust's quarterly financial reports. Shelter Bay is expected
to utilize independent auditors and to review quarterly financial and
operating reports consistent with those of Crescent Point. Under the Technical
Services Agreement executed with Shelter Bay, Crescent Point will allocate a
portion of its general and administrative expenses to the Company.
    Under the terms of the unanimous shareholders' agreement to be entered
into in association with the funding of Shelter Bay, Crescent Point will have
certain rights to offer to acquire the other shares of Shelter Bay or to
acquire Shelter Bay's assets at any point in time after January 1, 2010 and
before December 31, 2012.

    LANDEX ACQUISITION

    Under the terms of the anticipated Amended Agreement, Crescent Point will
expect to pay approximately $80 million, comprised of a maximum of $75 million
Crescent Point trust units and a minimum of $5 million of cash, to acquire the
non-Bakken assets of Landex, approximately 1,500 boe/d of high quality light
oil production in Crescent Point's core area of southeast Saskatchewan. These
assets are adjacent to and contiguous with existing Crescent Point properties
at Hastings and Wauchope and continue to consolidate the Trust's position in
southeast Saskatchewan.

    
    Key attributes of the non-Bakken assets acquired:

    -   Current production of 1,500 boe/d comprised of 90 percent high
        netback, light oil and 10 percent natural gas;
    -   5 net low risk drilling locations;
    -   Tax pools estimated at more than $50 million;
    -   Low operating costs of less than $6.00/boe; and
    -   Royalties of less than 19%.
    

    Independent engineers have assigned reserves to the non-Bakken assets of
2.7 million boe proved and 3.6 million boe proved plus probable as at
November 30, 2007.
    Under the terms of the anticipated Amended Agreement, Shelter Bay is
expected to pay approximately $230 million, comprised of a minimum of
$20 million to a maximum of $60 million in Shelter Bay shares and the
remainder in cash, to acquire the Bakken assets of Landex. Landex is producing
approximately 2,500 boe/d of light sweet, high netback production in the heart
of the southeast Saskatchewan Bakken light oil resource play. These assets are
adjacent to and contiguous with Crescent Point's Bakken assets and with
Shelter Bay's farmin lands from Crescent Point.

    
    Key attributes of the Bakken assets acquired:

    -   Current production of 2,500 boe/d comprised of 99 percent high
        netback, light sweet Bakken oil;
    -   21 net operated sections of Bakken land in the heart of the light oil
        resource play;
    -   116 net low risk drilling locations, of which only 38 net are booked
        in the independent engineering reserve report;
    -   Low operating costs less than $5.00/boe; and
    -   Royalties of approximately 12.5%.
    

    Independent engineers have assigned reserves to the Bakken assets of
4.5 million boe proved and 6.8 million boe proved plus probable as at
November 30, 2007. Crescent Point's internal evaluation effective January 1,
2008 assigns reserves of 8.6 million boe proved and 9.3 million boe proved
plus probable and includes an additional 12 net low risk Bakken drilling
locations above the 38 assigned in the independent engineering report.

    ACQUISITION METRICS

    The acquisition of the non-Bakken assets of Landex is accretive to
Crescent Point on a production, reserves and cash flow per unit basis.
    The value of the transaction is $80 million, resulting in the following
transaction metrics:

    
    1. Cash Flow Multiple:
        -  2.7 times based on 1,500 boe/d (US$85.00 WTI/bbl; $6.50/mcf AECO
           and $1.00 CDN$/US$ exchange rate)
    2. Production:
        -  $53,333 per producing boe based on 1,500 boe/d
    3. Reserves:
        -  $22.22 per proved plus probable boe based on 3.6 million boe
        -  $29.63 per proved boe based on 2.7 million boe
    4. Recycle Ratio:
        -  2.5 times proved plus probable based on forecast netback of
           $55.00/boe

    Transaction metrics for the Bakken assets expected to be acquired by
Shelter Bay, based on a transaction value of $230 million, are as follows:

    1. Cash Flow Multiple:
        -  3.7 times based on 2,500 boe/d (US$85.00 WTI/bbl; $6.50/mcf AECO
           and $1.00 CDN$/US$ exchange rate)
    2. Production:
        -  $92,000 per producing boe based on 2,500 boe/d
    3. Reserves:
        -  $24.73 per proved plus probable boe based on 9.3 million boe
        -  $26.74 per proved boe based on 8.6 million boe
    4. Recycle Ratio:
        -  2.7 times proved plus probable based on forecast netback of
           $67.50/boe
    

    SHELTER BAY FINANCING

    Initial funding for Shelter Bay is expected to be $300 million, of which
Crescent Point will invest up to $60 million, or 20 percent, which Crescent
Point will finance through its existing bank lines. Under the terms of the
Amended Agreement, Landex shareholders are expected to elect to receive a
minimum of $20 million to a maximum of $60 million of Shelter Bay shares in
consideration for the Landex Bakken assets. The remaining $180 to $220 million
in initial funding will be raised via a private placement of Shelter Bay
shares. The private placement, which is expected to close in mid-March 2008,
is co-led by FirstEnergy Capital Corp. and BMO Capital Markets, and includes
Scotia Capital Inc. and GMP Securities LP.
    It is anticipated that the net proceeds of the financing will be used to
fund the acquisition of the Landex Bakken assets, to fund a portion of the
2008 40 gross well farmin drilling program, and for general corporate
purposes.
    Crescent Point will retain the right to participate up to 25 percent in
any future Shelter Bay financings to maintain the Trust's ownership position
in the Company.

    REVISING UPWARDS CRESCENT POINT 2008 GUIDANCE

    Crescent Point continues to execute its business plan of creating
sustainable value added growth in reserves, production and cash flow through
management's integrated strategy of acquiring, exploiting and developing high
quality, long life, light oil and natural gas properties in western Canada.
    Subject to the expected mid-March closing of the Amended Agreement,
Crescent Point is upwardly revising its 2008 production forecast from 32,750
boe/d to 34,500 boe/d based on production additions of 1,200 boe/d for the
non-Bakken Landex assets and increased production related to the Shelter Bay
farmin. Currently, Crescent Point is producing in excess of 33,500 boe/d,
mainly due to drilling and fracture stimulation success in the Bakken play.
The Trust's development capital budget remains unchanged at $225 million.
    Crescent Point continues to protect its cash flow stream with its
balanced hedge program through a combination of swaps, collars and put
structures. Currently, Crescent Point (pro forma with the acquired assets) has
56 percent, 52 percent and 29 percent of its production hedged for the balance
of 2008, 2009 and 2010, respectively, at an average hedge price above CDN$80
per boe and a minimum floor price of approximately CDN$72 per boe.
    The Trust's balance sheet remains strong, with debt to forecast 2008 cash
flow less than 1.2 times and more than $190 million available on the Trust's
bank line.
    The Trust's revised annual projections for 2008 are as follows:

    
    -------------------------------------------------------------------------
                                              2008 Guidance     2008 Revised
                                                                    Guidance
    Production
      Oil and NGL (bbls/d)                           28,500           30,125
      Natural gas (mcf/d)                            25,500           26,250
    -------------------------------------------------------------------------
    Total (boe/d)                                    32,750           34,500
    -------------------------------------------------------------------------
    Cash flow ($000)                                433,000          481,000
    Cash flow per unit - diluted ($)                   3.44             3.82
    Cash distributions per unit ($)                    2.40             2.40
    Payout ratio - per unit - diluted (%)                70               63
    -------------------------------------------------------------------------
    Capital expenditures ($000)(1)                  225,000          225,000
    Wells drilled, net                                  106              106
    -------------------------------------------------------------------------
    Pricing
      Crude oil - WTI (US$/bbl)                       80.00            85.00
      Crude oil - WTI (Cdn$/bbl)                      80.00            85.00
      Natural gas - Corporate (Cdn$/mcf)               6.50             6.50
      Exchange rate (US$/Cdn$)                         1.00             1.00
    -------------------------------------------------------------------------
    The projection of capital expenditures excludes acquisitions, which are
    separately considered and evaluated.
    

    FORECAST OF SHELTER BAY'S 2008 OPERATIONS

    Crescent Point expects that with Shelter Bay's Bakken farmin and with the
Arrangement closing on the terms in the Amended Agreement described above, the
Company will be well positioned for growth in the Bakken light oil resource
play. Crescent Point believes that the Company will be the third largest
producer in the southeast Saskatchewan Bakken play with 2008 forecast
production of 3,100 boe/d on more than 30 net sections of Bakken land. The
Trust expects that in 2008, Shelter Bay will drill up to 56 gross Bakken
horizontal wells, including 40 gross wells on farmin lands and 16 gross wells
on lands acquired from Landex.
    Crescent Point anticipates that Shelter Bay will hedge up to 50 percent
of its production for one to three years beginning with 2008 using a balanced
portfolio of instruments.

    
    Key attributes of Shelter Bay:

    -   Forecast 2008 average production of 3,100 boe/d comprised of 99
        percent high netback, light sweet Bakken oil;
    -   Forecast 2008 exit production of greater than 4,000 boe/d;
    -   More than 30 net operated sections of Bakken land in the heart of the
        light oil resource play;
    -   More than 150 net low risk Bakken drilling locations, of which only
        47 net are booked by independent engineers;
    -   Tax pools of approximately $90 million;
    -   Projected 2008 debt to annualized cash flow of approximately 0.1
        times;
    -   Bank line estimated at $40 million;
    -   Forecast 2008 netback of greater than $67.00/boe;
    -   Low operating costs less than $5.00/boe; and
    -   Royalties of 12.5%.

    Forecast of Shelter Bay's 2008 operations are as follows:

    -------------------------------------------------------------------------
                                                               2008 Forecast
    Production
      Oil and NGL (bbls/d)                                             3,050
      Natural gas (mcf/d)                                                300
    -------------------------------------------------------------------------
    Total (boe/d)                                                      3,100
    -------------------------------------------------------------------------
    Cash flow ($000)                                                  75,500
    -------------------------------------------------------------------------
    Capital expenditures ($000)(1)                                   100,000
    Wells drilled, gross                                                  56
    -------------------------------------------------------------------------
    Pricing
      Crude oil - WTI (US$/bbl)                                        85.00
      Crude oil - WTI (Cdn$/bbl)                                       85.00
      Natural gas - Corporate (Cdn$/mcf)                                6.50
      Exchange rate (US$/Cdn$)                                          1.00
    -------------------------------------------------------------------------
    (1) The projection of capital expenditures excludes acquisitions, which
        are separately considered and evaluated.
    

    FINANCIAL AND STRATEGIC ADVISORS

    BMO Capital Markets acted as financial advisor to Crescent Point with
respect to the Landex acquisition. Tristone Capital Inc. acted as financial
advisor to Landex with respect to the transaction.

    FORWARD LOOKING STATEMENTS

    Certain statements contained in this press release may constitute forward
looking statements, including expectations of future production, cash flow and
earnings. All forward-looking statements are based on the Crescent Point's
beliefs and assumptions based on information available at the time the
assumption was made. The use of any of the words "anticipate", "continue",
"estimate", "expect", "may", "will", "project", "should", "believe" and
similar expressions are intended to identify forward looking statements. By
its nature, such forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward looking statements,
including those material risks discussed in our annual information form under
"Risk Factors" and in our MD&A under "Business Risks and Prospects". These
risks include, but are not limited to: the risks associated with the oil and
gas industry (e.g., operational risks in development, exploration and
production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
commodity price, price and exchange rate fluctuations and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. Additional
information on these and other factors that could affect Crescent Point's
operations or financial results are included in Crescent Point's reports on
file with Canadian securities regulatory authorities. These statements speak
only as of the date of this press release or as of the date specified in this
press release Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is expressed
herein or otherwise and, unless required by law, Crescent Point undertakes no
obligation to update publicly or revise any forward-looking information,
whether as a result of new information, future events or otherwise.

    This news release is not for dissemination in the United States or to any
United States news services. The trust units of Crescent Point have not and
will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold in the United States or to any U.S. person except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws.

    Crescent Point is a conventional oil and gas income trust with assets
strategically focused in properties comprised of high quality, long life,
operated, light oil and natural gas reserves in western Canada.

    CRESCENT POINT ENERGY TRUST

    Scott Saxberg,
    President and Chief Executive Officer





For further information:

For further information: Greg Tisdale, Chief Financial Officer or Trent
Stangl, Manager Marketing and Investor Relations, Telephone: (403) 693-0020,
Toll free (US & Canada): 1-888-693-0020, Fax: (403) 693-0070; website:
www.crescentpointenergy.com

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