Crescent Point Energy Trust Announces Second Quarter 2008 Results



    CALGARY, Aug. 11 /CNW/ - Crescent Point Energy Trust, ("Crescent Point"
or the "Trust") (TSX: CPG.UN), is pleased to announce its operating and
financial results for the second quarter and six months ended June 30, 2008.

    
    FINANCIAL AND OPERATING HIGHLIGHTS

    -------------------------------------------------------------------------
    ($000s except
     trust units,     Three months ended June 30    Six months ended June 30
     per trust unit  --------------------------------------------------------
     and per boe                             %                           %
     amounts)             2008      2007  Change      2008      2007  Change
    -------------------------------------------------------------------------
    Financial
    Funds flow from
     operations(1)(8)  142,990    78,248      83   298,654   151,123      98
      Per
       unit(1)(2)(8)      1.13      0.77      47      2.41      1.60      51
    Net income
     (loss)(3)(8)     (353,660) (117,773)   (200) (395,124)   39,771  (1,093)
      Per
       unit(2)(3)(8)     (2.83)    (1.17)   (142)    (3.21)     0.43    (847)
    Cash
     distributions      78,635    60,320      30   152,260   113,931      34
      Per unit(2)         0.63      0.60       5      1.23      1.20       3
    Payout ratio
     (%)(1)(8)              55        77     (22)       51        75     (24)
      Per unit
       (%)(1)(2)(8)         56        78     (22)       51        75     (24)
    Net debt(1)(4)     635,731   353,416      80   635,731   353,416      80
    Capital
     acquisitions
     (net)(5)            1,710    14,122     (88)  132,648   639,252     (79)
    Development capital
     expenditures      124,487    42,416     193   241,382    74,746     223
    Weighted average
     trust units
     outstanding (mm)
      Basic              124.8     100.3      24     122.9      93.3      32
      Diluted            126.4     101.7      24     124.5      94.6      32
    -------------------------------------------------------------------------
    Operating
    Average daily
     production
      Crude oil and
       NGLs (bbls/d)    31,686    22,819      39    31,398    22,443      40
      Natural gas
       (mcf/d)          29,144    20,109      45    28,735    19,745      46
    -------------------------------------------------------------------------
      Total (boe/d)     36,543    26,170      40    36,188    25,733      41
    -------------------------------------------------------------------------
    Average selling
     prices(6)
      Crude oil and
       NGLs ($/bbl)     115.48     63.11      83    103.07     60.79      70
      Natural gas
       ($/mcf)           10.45      7.17      46      9.11      7.31      25
    -------------------------------------------------------------------------
      Total ($/boe)     108.46     60.54      79     96.67     58.62      65
    -------------------------------------------------------------------------
    Netback ($/boe)
      Oil and gas
       sales            108.46     60.54      79     96.67     58.62      65
      Royalties         (20.06)   (11.77)     70    (17.31)   (10.68)     62
      Operating
       expenses          (8.78)    (9.44)     (7)    (8.59)    (9.42)     (9)
      Transportation     (1.97)    (1.61)     22     (2.11)    (1.65)     28
    -------------------------------------------------------------------------
      Netback prior to
       realized
       derivatives       77.65     37.72     106     68.66     36.87      86
      Realized gain
       (loss) on
       derivatives(7)   (16.61)     0.72  (2,407)   (11.76)     0.94  (1,351)
    -------------------------------------------------------------------------
      Operating netback  61.04     38.44      59     56.90     37.81      50
    -------------------------------------------------------------------------
    (1) Funds flow from operations, payout ratio and net debt as presented do
        not have any standardized meaning prescribed by Canadian generally
        accepted accounting principles and, therefore, may not be comparable
        with the calculation of similar measures presented by other entities.

    (2) The per unit amounts (with the exception of per unit distributions)
        are the per unit - diluted amounts. The net income and funds flow per
        unit - diluted amounts exclude the cash portion of unit-based
        compensation.

    (3) The net loss of $353.7 million for the second quarter of 2008
        includes unrealized derivative losses of $430.8 million and for the
        six month period ended June 30, 2008 includes an unrealized
        derivative losses of $540.6 million. The net loss for the second
        quarter of 2007 also includes a future income tax charge pertaining
        to the impact of the June 2007 Bill C-52 Budget Implementation Act.

    (4) Net debt includes working capital and long term investments, but
        excludes the risk management liabilities and assets.

    (5) Capital acquisitions represent total consideration for the
        transactions including bank debt and working capital assumed.

    (6) The average selling prices reported are before realized derivatives
        and transportation charges.

    (7) The realized derivative loss excludes a $34.5 million loss on the
        derivative crystallization of various oil contracts completed in the
        second quarter of 2008.

    (8) Funds flow from operations and the net loss for both the three and
        six months ended June 30, 2008 include the $34.5 million loss on the
        derivative crystallization. Excluding the $34.5 million derivative
        crystallization, funds flow from operations for the quarter would be
        $177.5 million or $1.41 per unit - diluted and $333.1 million or
        $2.68 per unit - diluted for the six months ended June 30, 2008. The
        net loss for the quarter would be $319.2 million or $2.56 per unit -
        diluted and $360.6 million or $2.93 per unit - diluted for the six
        months ended June 30, 2008. The payout ratio excluding the derivative
        crystallization would have been 44 percent and 45 per unit - diluted
        for the quarter and 46 percent and 46 percent per unit - diluted for
        the six months ended June 30, 2008.


    HIGHLIGHTS

    In the second quarter of 2008, Crescent Point continued to execute its
integrated business strategy of acquiring, exploiting and developing high
quality, long life light and medium oil and natural gas properties.

    -   The Trust grew production by 2 percent over the first quarter of
        2008, averaging a record 36,543 boe/d per day in the second quarter
        of 2008. This exceeds the Trust's upwardly revised guidance of
        36,250 boe/d and represents a 40 percent increase from the second
        quarter of 2007.

    -   Crescent Point spent a record $124.5 million on development
        activities in the second quarter, including $65.4 million on
        facilities, land and seismic. The Trust spent $59.1 million on
        drilling activities, including the drilling of 33 (25.5 net) wells
        with a 100 percent success rate and the fracture stimulation of
        28 (25.6 net) Bakken horizontal wells. In total, the Trust added more
        than 1,850 boe/d of initial interest production from second quarter
        development activities.

    -   In the second quarter, the Trust acquired six net sections of
        undeveloped Bakken land, increasing its undeveloped Bakken land
        holdings to 386 net sections.

    -   Crescent Point's funds flow from operations increased by 83 percent
        to $143.0 million ($1.13 per unit - diluted) in the second quarter of
        2008, compared to $78.2 million ($0.77 per unit - diluted) in the
        second quarter of 2007. The Trust's funds flow from operations
        includes a reduction of $34.5 million ($0.28 per unit - diluted)
        resulting from the Trust's hedge crystallization and reset program.
        Excluding the hedge crystallization reduction, the Trust's fund flow
        from operations in the quarter was a record $177.5 million ($1.41 per
        unit - diluted).

    -   Crescent Point initiated a hedge crystallization and reset program in
        the second quarter in which the Trust crystallized forward mark to
        market losses of $34.5 million on a portion of its hedges in 2009 and
        2010 using a combination of swaps and collars. Through the hedge
        crystallization and reset program, the Trust will realize a
        corresponding increase in cash flows in 2009 and 2010 in the range of
        $28.9 million to $47.3 million which will further strengthen the
        sustainability of the Trust's distribution in these years. It will
        also provide a mechanism to reduce 2008 taxable income due to record
        high cash flow.

    -   The Trust increased its operating netback to a record $61.04 per boe
        (excluding adjustments for the hedge crystallization program) in the
        second quarter of 2008 from $38.44 in the second quarter of 2007. The
        59 percent increase was due primarily to higher benchmark prices as
        well as improved crude quality, lower operating costs and lower
        royalty rates as a result of the Trust's growing Bakken production,
        which realized a second quarter operating netback of $94.03 per boe.
        Crescent Point reduced its operating costs by 7 percent from the
        second quarter of 2007 due to strong operating cost discipline and
        increasing Bakken production.

    -   Due to successful drilling and higher than expected cash flows,
        Crescent Point increased its monthly distribution to $0.23 per unit
        effective for the June production month. Distributions for the second
        quarter of 2008 totaled $0.63 per unit, up from $0.60 per unit in the
        second quarter of 2007. This represents a payout ratio of 56 percent
        on a per unit - diluted basis, down from 78 percent in the second
        quarter of 2007. Excluding the impact of the hedge crystallization,
        the payout ratio was 45 percent on a per unit - diluted basis.

    -   During the second quarter of 2008, Shelter Bay Energy Inc. ("Shelter
        Bay"), a private Bakken light oil growth company in which Crescent
        Point has a 19 percent interest, drilled 7 Bakken horizontal wells on
        lands farmed out by the Trust. Crescent Point's interests in the
        wells average 50 percent for a net share of 3.5 wells, which are not
        included in the Crescent Point drilling results. Crescent Point's
        share of production from the wells averaged over 300 boe/d for the
        quarter. Under the farmout agreement, Shelter Bay is responsible for
        100 percent of the capital costs associated with these wells.

        In total, Shelter Bay drilled 13 Bakken horizontal wells in the
        second quarter and increased its undeveloped Saskatchewan land
        holdings to more than 100 net sections.

    -   In May of 2008, Crescent Point's bank line was increased to
        $1.0 billion from $800 million due to significant growth in reserves
        from the Trust's successful acquisitions and development activities.
        The Trust's balance sheet remains strong with significant unutilized
        capacity on its bank line and projected 2008 net debt to 12 month
        cash flow of 1.0 times.

    -   The Trust continued to execute its core strategy of managing
        commodity price risk using a combination of fixed price swaps,
        costless collars, and put option instruments. As at July 28, 2008,
        the Trust had hedged 57 percent, 54 percent, 43 percent and
        19 percent of production, net of royalty interest, for the balance of
        2008, 2009, 2010 and 2011, respectively. Average hedge prices were
        greater than Cdn$90.00 per boe with minimum floors ranging from
        Cdn$74.00 to Cdn$142.00 per boe.

    -   Crescent Point promoted Mr. Trent Stangl to Vice President, Marketing
        & Investor Relations effective July 1, 2008. Mr. Stangl most recently
        held the position of Manager, Marketing & Investor Relations with the
        Trust.
    

    OPERATIONS REVIEW

    Forward-Looking Statements

    This report may contain forward-looking statements including expectations
of future production, cash flow and earnings. These statements are based on
current beliefs and expectations based on information available at the time
the assumption was made. By its nature, such forward-looking information is
subject to a number of risks, uncertainties and assumptions, which could cause
actual results or other expectations to differ materially from those
anticipated, including those material risks discussed in our annual
information form under "Risk Factors" and in our Management's Discussion and
Analysis for the year ended December 31, 2007, under "Business Risks and
Prospects"; the material assumptions are disclosed in the Results of
Operations section of this press release under the headings "Cash
Distributions", "Taxation of Cash Distributions", "Capital Expenditures",
"Asset Retirement Obligation", "Liquidity and Capital Resources", "Critical
Accounting Estimates", "New Accounting Pronouncements" and "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 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. 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 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.

    Second Quarter Operations Summary

    During the second quarter of 2008, Crescent Point continued to
aggressively execute management's business strategy of creating sustainable,
value added growth in reserves, production and cash flow through acquiring,
exploiting and developing high quality, long life light and medium oil and
natural gas properties.
    Crescent Point achieved another record quarter for production and
exceeded guidance in the second quarter of 2008. Production averaged
36,543 boe/d, a 2 percent increase from the first quarter of 2008. The Trust
participated in the drilling of 32 (24.8 net) oil wells and 1 (0.7 net)
service well, achieving a 100 percent success rate, and fracture stimulated
28 (25.6 net) Bakken horizontal wells. Combined, the Trust's drilling and
fracture stimulation activities added in excess of 1,850 boe/d of initial
interest production. In addition, Crescent Point demonstrated strong operating
cost discipline in the quarter, reducing operating costs by 7 percent from the
second quarter of 2007.

    
    Drilling Results

    -------------------------------------------------------------------------
    Three months ended                                                  %
     June 30, 2008         Gas Oil D&A Service Standing  Total   Net Success
    -------------------------------------------------------------------------
    Southeast Saskatchewan   -  28   -       1        -     29  23.3     100
    Southwest Saskatchewan   -   4   -       -        -      4   2.2     100
    South/Central Alberta    -   -   -       -        -      -     -       -
    Northeast BC & W Peace
     River Arch, Alberta     -   -   -       -        -      -     -       -
    -------------------------------------------------------------------------
    Total                    -  32   -       1        -     33  25.5     100
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Six months ended                                                    %
     June 30, 2008         Gas Oil D&A Service Standing  Total   Net Success
    -------------------------------------------------------------------------
    Southeast Saskatchewan   -  67   -       4        -     71  57.5     100
    Southwest Saskatchewan   -   8   -       -        -      8   4.0     100
    South/Central Alberta    -   -   -       -        -      -     -       -
    Northeast BC & W Peace
     River Arch, Alberta     -   4   -       -        -      4   4.0     100
    -------------------------------------------------------------------------
    Total                    -  79   -       4        -     83  65.5     100
    -------------------------------------------------------------------------
    

    Southeast Saskatchewan

    In the second quarter, drilling activities resumed in early May after the
annual spring break up period. In the quarter, Crescent Point participated in
the drilling of 28 (22.6 net) oil wells and 1 (0.7 net) service well in
southeast Saskatchewan, achieving a 100 percent success rate. Of these,
24 (19.1 net) wells were Bakken horizontal oil wells at Viewfield and the
remainder were horizontal oil wells at Manor. The Trust also fracture
stimulated 28 (25.6 net) Bakken horizontal oil wells.
    Crescent Point added initial interest production in excess of 1,600 boe/d
in southeast Saskatchewan through its drilling and fracture stimulation
activities in the quarter.
    During the quarter, Shelter Bay drilled 7 Bakken horizontal wells on
lands farmed out by the Trust. Crescent Point's share of production from all
farmout wells averaged more than 300 boe/d for the quarter. These wells are
not included in the above totals.
    Expansion activities to accommodate the Trust's growing Bakken production
continued at the Viewfield gas plant. Design work was completed and equipment
was ordered for the 9 mmcf/d expansion to 15 mmcf/d, which is expected to be
complete by the end of the fourth quarter of 2008. Design work continues for
the mid 2009 expansion to 30 mmcf/d, which will accommodate the Trust's
drilling plans at Viewfield, including up to 110 (93.4 net) Bakken wells to be
drilled in 2008, as well as Shelter Bay Bakken production and other potential
third party Bakken volumes.
    Through a strategic Crown and freehold land acquisition strategy,
Crescent Point acquired 6.1 net sections of undeveloped Bakken land in the
second quarter of 2008. Total undeveloped Bakken land holdings at the end of
the second quarter were 386 net sections.
    Also in the second quarter, the Trust drilled 4 (3.5 net) horizontal oil
wells at Manor and 1 (0.7 net) water injection well at the Tatagwa Unit,
adding over 200 boe/d of initial interest production and achieving a
100 percent success rate. At Manor, the Trust plans to drill up to 7 (5.4 net)
horizontal oil wells in 2008, including 2 (2.0 net) reduced spacing wells.
    Restrictions on the Enbridge Pipelines (Saskatchewan) gathering system
were removed in June when the pipeline's Alida to Cromer expansion was
completed. The expansion reduces the need for incremental trucking in the area
and contributed to a 13 percent reduction in the Trust's transportation costs
from the first quarter to the second quarter. With Bakken production in the
area continuing to grow, Crescent Point believes that future restrictions may
materialize over the coming years, but not to the levels seen over the past
18 months.

    Southwest Saskatchewan

    At Cantuar in the second quarter, Crescent Point participated in the
drilling of 4 (2.2 net) wells with 100 percent success, adding over 75 boe/d
of interest production. At Battrum, Crescent Point continued to optimize water
flood patterns. The Trust reactivated 2 (0.9 net) wells adding 45 boe/d of
interest production and expects to reactivate a further 3 (1.3 net) wells. The
Trust plans to drill up to 20 (9.1 net) oil wells in 2008 at the Battrum and
Cantuar units, which is expected to maintain production at current levels.

    South/Central Alberta

    At Sounding Lake, Crescent Point continued to work on recovery
optimization activities within the Dina and Cummings formations. The Trust is
awaiting approval of its application for water flood implementation in the
Sparky formation, expected later in 2008. Water injection is expected to
commence in late 2008. There were 2 (2.0 net) oil wells recompleted in the
Sparky formation adding 65 boe/d of production.
    At Little Bow, the Trust completed the first 3 (3.0 net) of 8 (8.0 net)
identified heel recompletion candidates, adding 85 boe/d of production.

    Northeast British Columbia and Peace River Arch, Alberta

    At Worsley, expansion of the Charlie Lake S pool water flood is awaiting
regulatory approval, expected later in 2008. Up to 2 (2.0 net) wells targeting
the Charlie Lake formation are planned for later in 2008, in addition to
ongoing analysis of recompletion potential and continued optimization of gas
gathering facilities.
    The Trust is preparing to drill 1 (0.5 net) well targeting the Doig
formation at Teepee Creek and 1 (0.2 net) Montney gas well in the Pouce Coupe
area. Pending the results of the Montney drilling and fracture stimulation
success, potential follow up locations will be considered.

    Shelter Bay Second Quarter Update

    During the second quarter of 2008, Shelter Bay drilled 13 Bakken
horizontal wells, including 7 on lands farmed out by the Trust. Crescent
Point's share of production from all farmout wells averaged more than
300 boe/d for the quarter. Shelter Bay also fracture stimulated 13 Bakken
horizontal wells. Through an aggressive acquisitions strategy targeting Crown
land sales, freehold lease acquisitions and corporate acquisitions, Shelter
Bay acquired more than 40 net sections of undeveloped Bakken land in the
second quarter, bringing its total Saskatchewan land holdings to more than
100 net sections. Shelter Bay is poised for growth with significant access to
capital for future expansion opportunities within Crescent Point's core areas
along with the development of its existing inventory of over 325 Bakken
drilling locations.
    During the second quarter of 2008, the Trust increased its investment in
Shelter Bay pursuant to the Call Obligation Agreement whereby the Trust
subscribed for an additional $20.0 million of Class A Common Shares.

    OUTLOOK

    Crescent Point continues to execute its proven business plan of creating
value added growth in reserves, production and cash flow through management's
integrated strategy of acquiring, exploiting and developing high quality, long
life, light and medium oil and natural gas properties.
    The Trust estimates it has an interest in more than 6 billion barrels of
original oil in place gross and a reserve life index of 13.3 years on a proved
plus probable basis.
    Crescent Point has an extensive low risk development drilling inventory
of nearly 1,400 net locations, representing more than $2.2 billion of future
development projects and more than 10 years of low risk drilling inventory to
sustain and grow current production levels. Through infill drilling,
production optimization and water flood implementation, management believes
the Trust has the potential to more than double its proved plus probable
reserves over time.
    On June 16, 2008, Crescent Point announced a $200 million upward revision
to its 2008 development capital budget to $425 million from $225 million. The
vast majority of the increase will accelerate development of the Bakken
resource play, which will further extend the Trust's dominance in the play and
capitalize on record high oil prices.
    In total, the Trust will spend approximately $255 million in 2008 on
drilling and completions activities, which will add production at a rate of
approximately $25,000 per boe. Crescent Point will drill up to 174 (139.7 net)
wells, including 110 (93.4 net) Bakken horizontal wells, up from previous
plans of 140 (105.7 net) and 79 (65.5 net), respectively. The Trust will also
fracture stimulate up to 130 (114.4 net) Bakken horizontal wells. Crescent
Point currently has 150 Bakken horizontal wells in inventory awaiting fracture
stimulation. With significant increases in both drilling and fracture
stimulations, Crescent Point now expects to exit 2008 with production greater
than 37,500 boe/d.
    Crescent Point's 2008 budget for land, facilities and seismic has been
increased to $170 million from $45 million as the Trust positions itself for
further growth in the Bakken resource play in the coming years. The majority
will be spent in the Bakken resource play as the Trust continues to
consolidate the area. Approximately $80 million is planned on facilities,
directed mostly at the long term strategic infrastructure development of the
Viewfield Bakken resource play. Facilities projects in the budget include the
Viewfield gas plant expansion from 6 mmcf/d to 15 mmcf/d, strategic battery
consolidations, and gathering lines construction, all contributing to area
efficiencies and maximizing product value as the Bakken resource play expands
and develops. Crescent Point expects to further expand the Viewfield gas plant
to 30 mmcf/d in mid 2009.
    Also on June 16, Crescent Point announced a 15 percent increase to its
monthly distribution from $0.20 per unit to $0.23. The increase is due to
better than expected drilling and production results along with higher than
anticipated commodity prices. Crescent Point is well positioned to maintain
its newly increased monthly distribution over time due to its strong balance
sheet and balanced 3 1/2 year risk management program.
    In light of higher than anticipated cash flow in 2008, Crescent Point
crystallized a portion of the forward mark to market loss associated with
certain fixed price swaps in its 2009 and 2010 risk management program. These
hedges were reset at significantly higher prices using a combination of swaps
and collars, increasing the Trust's 2009 and 2010 average hedge prices. This
will increase cash flows and further strengthen the sustainability of the
Trust's increased distribution in 2009 and 2010. It will also provide a
mechanism to reduce 2008 taxable income due to record high cash flow.
    This mark to market crystallization will be reviewed on a quarterly basis
for the balance of 2008 in order to position the Trust for increased future
cash flows in 2009 and 2010.
    As of July 28, 2008, the Trust had hedged 57 percent, 54 percent,
43 percent and 19 percent of production, net of royalty interest, for the
balance of 2008, 2009, 2010 and 2011, respectively. Average hedge prices were
greater than Cdn$90.00 per boe. Hedge instruments utilized in the program
include swaps, collars and put options, providing average floor prices ranging
from approximately Cdn$74.00 to Cdn$142.00 per boe, with upside potential if
commodity prices strengthen above current levels.
    Crescent Point's management believes that with the high quality reserve
base and development inventory, excellent balance sheet and solid hedging
program, the Trust is well positioned to continue generating strong operating
and financial results and delivering sustainable distributions through 2008
and beyond.

    
    2008 Guidance

    Crescent Point's 2008 guidance is as follows:

    -------------------------------------------------------------------------
    Production
      Oil and NGL (bbls/d)                                            31,750
      Natural gas (mcf/d)                                             27,000
    -------------------------------------------------------------------------
      Total (boe/d)                                                   36,250
    -------------------------------------------------------------------------
    Funds flow from operations ($000)                                621,000
    Funds flow from operations per unit - diluted ($)                   4.98
    Cash distributions per unit ($)                                     2.61
    Payout ratio - per unit - diluted (%)                                 52
    -------------------------------------------------------------------------
    Capital expenditures ($000)(1)                                   425,000
    Wells drilled, net                                                   140
    -------------------------------------------------------------------------
    Pricing
      Crude oil - WTI (US$/bbl)                                       110.50
      Crude oil - WTI (Cdn$/bbl)                                      110.50
      Natural gas - Corporate (Cdn$/mcf)                                9.50
      Exchange rate (US$/Cdn$)                                          1.00
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The projection of capital expenditures excludes acquisitions, which
        are separately considered and evaluated.


    ON BEHALF OF THE BOARD OF DIRECTORS

    (signed)

    Scott Saxberg
    President and Chief Executive Officer
    August 11, 2008
    

    MANAGEMENT'S DISCUSSION & ANALYSIS

    Management's discussion and analysis ("MD&A") is dated August 11, 2008
and should be read in conjunction with the unaudited interim consolidated
financial statements for the period ended June 30, 2008 and the audited
consolidated financial statements and MD&A for the year ended
December 31, 2007, for a full understanding of the financial position and
results of operations of Crescent Point Energy Trust ("Crescent Point" or the
"Trust").

    Non-GAAP Financial Measures

    Throughout this discussion and analysis, the Trust uses the terms funds
flow from operations, funds flow from operations per unit, funds flow from
operations per unit-diluted, net debt, market capitalization and total
capitalization. These terms do not have any standardized meaning as prescribed
by Canadian generally accepted accounting principles ("GAAP") and, therefore,
may not be comparable with the calculation of similar measures presented by
other issuers.
    Funds flow from operations is calculated based on cash flow from
operating activities before changes in non-cash working capital and asset
retirement obligation expenditures. Funds flow from operations per
unit-diluted is calculated based on cash flow from operating activities before
changes in non-cash working capital and asset retirement obligation
expenditures excluding the cash portion of unit-based compensation. Management
utilizes funds flow from operations as a key measure to assess the ability of
the Trust to finance distributions, operating activities, capital expenditures
and debt repayments. Funds flow from operations as presented is not intended
to represent cash flow from operating activities, net earnings or other
measures of financial performance calculated in accordance with Canadian GAAP.

    
    The following table reconciles the cash flow from operating activities to
funds flow from operations:

    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
                                               %                         %
    ($000)                   2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Cash flow from
     operating
     activities           140,181  102,637      37  305,455  152,813     100
    Changes in non-cash
     working capital        2,521  (24,586)   (110)  (8,380)  (2,379)    252
    Asset retirement
     expenditures             288      197      46    1,579      689     129
    -------------------------------------------------------------------------
    Funds flow from
     operations           142,990   78,248      83  298,654  151,123      98
    -------------------------------------------------------------------------
    

    Net debt is calculated as current liabilities less current assets and
long term investments but excludes risk management assets and liabilities.
Management utilizes net debt as a key measure to assess the liquidity of the
Trust. Market capitalization is calculated by applying the period end closing
unit trading price to the number of trust units outstanding. Market
capitalization is an indication of the enterprise value. Total capitalization
is calculated as market capitalization and current liabilities, less current
assets and long term investments, excluding the risk management assets and
liabilities. Total capitalization is used by management to measure the
proportion of net debt in the Trust's capital structure.

    Forward-Looking Information

    Certain statements contained in this report constitute forward-looking
statements and are based on the Trust's beliefs and assumptions based on
information available at the time the assumption was made. 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. The Trust and
Crescent Point Resources Inc. ("CPRI"), the administrator of the Trust,
believe the expectations reflected in those forward-looking statements are
reasonable but no assurance can be given that these expectations will prove to
be correct and such forward-looking statements should not be unduly relied
upon. These statements are effective only as of the date of this report.
    The material assumptions in making these forward-looking statements are
disclosed in this analysis under the headings "Cash Distributions", "Capital
Expenditures", "Asset Retirement Obligation", "Liquidity and Capital
Resources", "Critical Accounting Estimates", "New Accounting Pronouncements"
and "Outlook".
    This disclosure contains certain forward-looking estimates that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Crescent Point's control, including the impact of general economic
conditions; industry conditions including changes in laws and regulations
including the adoption of new environmental laws and regulations and changes
in how they are interpreted and enforced; increased competition and the lack
of availability of qualified personnel or management; fluctuations in
commodity prices, foreign exchange or interest rates; stock market volatility;
and obtaining required approvals of regulatory authorities. In addition, there
are numerous risks and uncertainties associated with oil and gas operations
and the evaluation of oil and gas reserves. Therefore, Crescent Point's actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking estimates and if such
actual results, performance or achievements transpire or occur, or if any of
them do so, there can be no certainty as to what benefits Crescent Point will
derive therefrom.
    A barrel of oil equivalent ("boe") is based on a conversion rate of six
thousand cubic feet of natural gas to one barrel of oil.

    Results of Operations

    Production

    Production increased by 40 percent and 41 percent over the second quarter
of and six months ended June 30, 2007 primarily due to the 2007 and 2008
corporate acquisitions in the Viewfield Bakken resource play and the Trust's
successful drilling and fracture stimulation programs, offset slightly by
natural declines.
    On October 22, 2007, the Trust closed the acquisition of Innova
Exploration Ltd. ("Innova"), which added over 4,300 boe/d of light oil and
natural gas assets, including more than 2,800 boe/d from the Viewfield Bakken
resource play. On January 16, 2008, the Trust closed the acquisition of Pilot
Energy Ltd. ("Pilot"), which added over 1,000 boe/d of high netback oil,
50 percent of which was in the Viewfield Bakken resource play. Lastly, on
March 26, 2008, the Trust closed the acquisition of light oil assets from
Shelter Bay Energy Inc. ("Shelter Bay") in connection with Shelter Bay's
corporate acquisition of Landex Petroleum Corp. ("Landex"). This property
acquisition added over 1,500 boe/d in the Trust's core area of southeast
Saskatchewan.
    Crescent Point's successful drilling program also contributed to the
significant increase in production in both the second quarter and six month
period ended June 30, 2008. The Trust drilled 33 (25.5 net) wells in the
second quarter of 2008, focused primarily in southeast Saskatchewan and the
Viewfield Bakken resource play. The Trust has grown Bakken production to a
current level exceeding 14,000 boe/d due to the acquisitions of Mission Oil
and Gas Inc. ("Mission"), Pilot, Innova and the farmout agreement with Shelter
Bay, along with a successful drilling and fracture stimulation program.
    The Trust's weighting to oil in the second quarter of 2008 remained
consistent with the comparative period.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
                                               %                         %
                             2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Crude oil and NGL
     (bbls/d)              31,686   22,819      39   31,398   22,443      40
    Natural gas (mcf/d)    29,144   20,109      45   28,735   19,745      46
    -------------------------------------------------------------------------
    Total (boe/d)          36,543   26,170      40   36,188   25,733      41
    -------------------------------------------------------------------------
    Crude oil and NGL (%)      87       87       -       87       87       -
    Natural gas (%)            13       13       -       13       13       -
    -------------------------------------------------------------------------
    Total (%)                 100      100       -      100      100       -
    -------------------------------------------------------------------------
    

    Marketing and Prices

    The Trust's selling price for oil increased significantly, from $63.11
per bbl in the second quarter of 2007 to $115.48 per bbl in the second quarter
of 2008, primarily due to the 91 percent increase in the US$ WTI benchmark
price, partially offset by a stronger Canadian dollar. Crescent Point's oil
differential for the three months ended June 30, 2008 was $9.77 per bbl
compared to $8.34 per bbl for the same period in 2007, due to the significant
increase in WTI benchmark pricing. The Trust's oil differential as a percent
of Cdn$ WTI, however, narrowed from 12 percent in the second quarter ended
June 30, 2007 to 8 percent in the second quarter 2008. This change in oil
differential reflects the growth of the Bakken production and resulting
improvement in the Trust's overall crude quality.
    In the six months ended June 30, 2008, the Trust's average selling price
for crude oil increased by 70 percent over the comparable 2007 period as a
result of the 80 percent increase in the $US WTI benchmark price, partially
offset by the stronger Canadian dollar. The corporate oil differential for the
six months ended June 30, 2008 was $9.04 per bbl compared to $9.26 per bbl in
the comparable 2007 period. Crescent Point's oil differential as a percent of
Cdn$ WTI narrowed from 13 percent to 8 percent for the six month period ended
June 30, 2008 and 2007, respectively. This trend is the result of the Trust's
improved crude quality from increased Bakken production.
    The Trust's average selling price for gas increased to $10.45 in the
second quarter of 2008 from $7.17 in the second quarter 2007. This compares
with a 44 percent increase in the AECO daily gas price. Similarly, the Trust's
average selling price for the six month period ended June 2008 showed a 25
percent increase from the same period in 2007, corresponding with the 26
percent increase in the AECO daily gas price.
    The variation in the Trust's gas price compared to the AECO daily price
reflects the Trust's portfolio of gas marketing contracts.

    
    -------------------------------------------------------------------------
    Average Selling     Three months ended June 30  Six months ended June 30
     Prices(1)                                 %                         %
                             2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Crude oil and NGL
     ($/bbl)               115.48    63.11      83   103.07    60.79      70
    Natural gas ($/mcf)     10.45     7.17      46     9.11     7.31      25
    -------------------------------------------------------------------------
    Total ($/boe)          108.46    60.54      79    96.67    58.62      65
    -------------------------------------------------------------------------
    (1) The average selling prices reported are before realized derivative
        losses and transportation charges.


    -------------------------------------------------------------------------
    Benchmark Pricing   Three months ended June 30  Six months ended June 30
                                               %                         %
                             2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    WTI crude oil
     (US$/bbl)             124.00    65.02      91   110.99    61.64      80
    WTI crude oil
     (Cdn$/bbl)            125.25    71.45      75   112.11    70.05      60
    AECO natural gas(1)
     (Cdn$/mcf)             10.21     7.07      44     9.10     7.23      26
    Exchange rate -
     US$/Cdn$                0.99     0.91       9     0.99     0.88      13
    -------------------------------------------------------------------------
    (1) The AECO natural gas price reported is the average daily spot price.
    

    Derivatives and Risk Management

    Management of cash flow variability is an integral component of Crescent
Point's business strategy. Changing business conditions are monitored
regularly and reviewed with the Board of Directors to establish risk
management guidelines used by management in carrying out the Trust's strategic
risk management program. The risk exposure inherent in movements in the price
of crude oil and natural gas, fluctuations in the US/Cdn dollar exchange rate,
changes in the price of power and interest rate movements on long-term debt
are all proactively managed by Crescent Point through the use of derivatives
with investment grade counterparties. The Trust considers these contracts to
be an effective means to manage cash flow.
    The Trust's crude oil and natural gas derivatives are referenced to WTI
and AECO, unless otherwise noted. Crescent Point utilizes a variety of
derivatives including swaps, collars and puts to protect against downward
commodity price movements while providing the opportunity for some
participation during periods of rising prices.
    The Trust incurred total realized derivative losses of $89.7 million and
$111.9 million for the three and six months ended June 30, 2008 compared to
gains of $1.7 million and $4.4 million in the same 2007 periods. The total
derivative losses in the second quarter and six months ended June 30, 2008
consist of operating realized derivative losses of $55.2 million and
$77.4 million plus $34.5 million of realized derivative losses resulting from
a derivative reset program (discussed below).
    Crescent Point's operating realized derivative loss for oil was
$55.0 million for the second quarter of 2008 and $77.3 million for the six
months ended June 30, 2008, compared to a $1.7 million gain and a $4.3 million
gain for the same periods in 2007, respectively. The loss is attributable to
the significant increase in the Cdn$ WTI benchmark price over 2007 partially
offset by an increase in derivative oil prices. The Cdn$ WTI benchmark price
increased 75 percent for the three month period ended June 30, 2008 over 2007,
while the Trust's average derivative oil price for the quarter increased
22 percent or $15.94 per barrel, from $73.20 per barrel in 2007 to $89.14 per
barrel in 2008.
    Crescent Point's loss pursuant to its derivative mark-to-market
crystallization and reset program ("derivative crystallization") announced
June 16, 2008 was $34.5 million. The Trust crystallized a portion of its
forward market losses on swaps for 2009 and 2010 and reset the hedges using a
combination of swaps and costless collars at current market prices, which were
significantly higher than the Trust's average derivative price. The impact of
resetting the 2009 and 2010 derivatives will increase the Trust's 2009 and
2010 funds flow from operations. This crystallization program will be reviewed
on a quarterly basis for the balance of 2008 in order to position the Trust to
increase future cash flows in 2009 and 2010, reduce 2008 taxable income and
sustain distributions at the recently increased rate.

    
    The following is a summary of the realized derivative gains (losses) on
oil and gas contracts:

    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per boe                      %                         %
     and volume amounts)     2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Average crude oil
     volumes hedged
     (bbls/d)              16,750   10,750      56   16,290   10,583      54
    Crude oil realized
     derivative gain
     (loss)               (55,035)   1,709  (3,320) (77,272)   4,341  (1,880)
      per bbl              (19.09)    0.82  (2,428)  (13.52)    1.07  (1,364)
    -------------------------------------------------------------------------
    Average natural gas
     volumes hedged (GJ/d)  2,000    4,000     (50)   2,000    3,000     (33)
    Natural gas realized
     derivative gain
     (loss)                  (203)       9  (2,356)    (162)      22    (836)
      per mcf               (0.08)       -       -    (0.03)    0.01    (400)
    -------------------------------------------------------------------------
    Average barrels of
     oil equivalent
     hedged (boe/d)        17,066   11,382      50   16,606   11,057      50
    Realized derivative
     gain (loss)          (55,238)   1,718  (3,315) (77,434)   4,363  (1,875)
      per boe              (16.61)    0.72  (2,407)  (11.76)    0.94  (1,351)
    -------------------------------------------------------------------------
    Derivative
     crystallization
     loss                 (34,483)       -       -  (34,483)       -       -
      per boe              (10.37)       -       -    (5.24)       -       -
    -------------------------------------------------------------------------
    Total realized
     derivative gain
     (loss)               (89,721)   1,718  (5,322) (111,917)  4,363  (2,665)
      per boe              (26.98)    0.72  (3,847)   (17.00)   0.94  (1,909)
    -------------------------------------------------------------------------
    

    The Trust has not designated any of its risk management activities as
accounting hedges under the Canadian Institute of Chartered Accountants (the
"CICA") section 3855 and, accordingly, has marked-to-market its derivatives.
    The Trust's unrealized derivative loss for the second quarter of 2008 was
$430.8 million compared to an $18.8 million gain for the same period in 2007.
The loss for the second quarter of 2008 is primarily attributable to the
significant increase in the Cdn$ WTI benchmark price at June 30, 2008 compared
to March 31, 2008. Also contributing to the loss was the increase in the
volume hedged. The trend is consistent for the six month period ended
June 30, 2008.
    The Trust's hedging policy allows for hedging a forward profile of three
and a half years, and up to 65 percent of net royalty interest production. As
at July 28, 2008, the Trust had hedged 57 percent, 54 percent, 43 percent and
19 percent of production, net of royalty interest, for the balance of 2008,
2009, 2010 and 2011, respectively.

    Crescent Point has the following derivative contracts in place as at
July 28, 2008:

    
    -------------------------------------------------------------------------
    Financial WTI Crude Oil Contracts - Canadian Dollar(1)

                                               Average    Average
                                    Average     Bought       Sold    Average
                         Average       Swap        Put       Call        Put
                          Volume      Price      Price      Price    Premium
    Term                 (bbls/d) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl)
    -------------------------------------------------------------------------
    2008 July-December    16,750      78.82      72.94      88.73      (6.66)
    2009                  16,000      83.82      74.03      95.48      (6.03)
    2010                  12,750      85.17      77.08      96.35      (4.51)
    2011                   5,500     104.12      94.48     124.35          -
    -------------------------------------------------------------------------
    (1) The volumes and prices reported are the weighted average volumes and
        prices for the period.


    -------------------------------------------------------------------------
    Financial AECO Natural Gas Contracts - Canadian Dollar(1)

                                                          Average    Average
                                                           Bought       Sold
                                               Average        Put       Call
                                                Volume      Price      Price
    Term                                         (GJ/d)  ($Cdn/GJ)  ($Cdn/GJ)
    -------------------------------------------------------------------------
    2008 July - October                          2,000       6.75       7.75
    -------------------------------------------------------------------------
    (1) The volumes and prices reported are the weighted average volumes and
        prices for the period.


    -------------------------------------------------------------------------
    Financial Interest Rate Contracts - Canadian Dollar

                                                                       Fixed
                                                         Principal    Annual
    Term                                      Contract       ($Cdn)  Rate (%)
    -------------------------------------------------------------------------
    July 2008 - February 2009                     Swap  50,000,000      4.37
    July 2008 - May 2009                          Swap  75,000,000      3.16
    July 2008 - November 2010                     Swap  75,000,000      4.35
    July 2008 - June 2011                         Swap  75,000,000      3.89
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Financial Power Contracts - Canadian Dollar
                                                                       Fixed
                                                                        Rate
                                                           Volume      ($Cdn/
    Term                                      Contract      (MW/h)      MW/h)
    -------------------------------------------------------------------------
    July 2008 - December 2008                     Swap        3.0      63.25
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Physical Power Contracts - Canadian Dollar
                                                                       Fixed
                                                                        Rate
                                                           Volume      ($Cdn/
    Term                                                    (MW/h)      MW/h)
    -------------------------------------------------------------------------
    July 2008 - December 2009                                 1.0      82.45
    January 2009 - December 2009                              3.0      81.25
    January 2010 - December 2010                              3.0      80.75
    -------------------------------------------------------------------------
    

    Revenues

    Crude oil and NGL revenues increased 154 percent and 139 percent in the
three and six months ended June 30, 2008 compared to the same periods in 2007.
The significant increase in oil sales is due to the 91 percent and 80 percent
increases in the US$ WTI benchmark price for the three month and six month
periods ending June 30, 2008 as compared to those periods in 2007, as well as
the 39 percent and 40 percent increases in production over the comparable
periods in 2007. Production increases are due to the acquisitions completed in
2007 and 2008 and the Trust's successful drilling program.
    Natural gas sales increased 111 percent and 82 percent in the three and
six months ended June 30, 2008 compared to the same periods in 2007 due to
increases in both the AECO daily gas prices and production as a result of
acquisitions and the Trust's successful drilling program.
    On July 23, 2008, the Trust announced that it has a potential exposure to
SemCanada Crude Company ("SemCanada"), a Canadian subsidiary of SemGroup, L.P.
("SemGroup"), relating to the marketing of a portion of the Trust's crude oil
and liquids production. The contract pertaining to the majority of the
production volumes purchased by SemCanada was previously terminated and does
not represent an ongoing exposure for the Trust. SemGroup filed a voluntary
petition for reorganization under Chapter 11 of the Bankruptcy Code in the
United States Bankruptcy Court for the District of Delaware and SemCanada also
filed for creditor protection in Canada under The Companies' Creditors
Arrangement Act. The Trust expects the exposure to be $30.0 million. As of
this date, the Trust is not able to quantify the portion, if any, of the
exposure that will be collected and as a result a provision has not been
recorded.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
                                               %                         %
    ($000)(1)                2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Crude oil and
     NGL sales            332,975  131,050     154  589,002  246,937     139
    Natural gas sales      27,710   13,129     111   47,662   26,122      82
    -------------------------------------------------------------------------
    Revenues              360,685  144,179     150  636,664  273,059     133
    -------------------------------------------------------------------------
    (1) Revenue is reported before transportation charges and realized
        derivatives.
    

    Transportation Expenses

    Transportation expense per boe increased 22 percent and 28 percent in the
three and six month periods ended June 30, 2008 compared to the same periods
in 2007. This is due to an increase in the number of single well batteries in
the Viewfield area, as well as higher oil trucking costs incurred due to
Enbridge Income Fund pipeline constraints in southeast Saskatchewan.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per                          %                         %
     boe amounts)            2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Transportation
     expenses               6,536    3,834      70   13,919    7,670      81
    Per boe                  1.97     1.61      22     2.11     1.65      28
    -------------------------------------------------------------------------

    Royalty Expenses

    Royalties as a percentage of revenue were consistent for the three and six
month periods ending June 30, 2008 compared to 2007.

    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per                          %                         %
     boe amounts)            2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Total royalties        66,698   28,023     138  113,990   49,767     129
    As a % of oil and
     gas sales                 18       19      (1)      18       18       -
    Per boe                 20.06    11.77      70    17.31    10.68      62
    -------------------------------------------------------------------------
    

    Operating Expenses

    Operating expenses per boe decreased by 7 percent in the second quarter
and 9 percent in the six month period ended June 30, 2008, over the comparable
periods in 2007. The decrease in operating costs per boe is primarily due to
the lower operating cost structure associated with the growing Viewfield
Bakken resource play. Production in this area has grown significantly through
acquisitions and drilling over the past year, and now accounts for
approximately 38 percent of the Trust's production, compared to approximately
18 percent at June 2007.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per                          %                         %
     boe amounts)            2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Operating expenses     29,197   22,477      30   56,559   43,867      29
    Per boe                  8.78     9.44      (7)    8.59     9.42      (9)
    -------------------------------------------------------------------------
    

    Netbacks

    The Trust's operating netback, after realized financial instruments, for
the first quarter of 2008 increased significantly to $61.04 per boe in 2008
from $38.44 per boe in 2007. The increase in the Trust's operating netback is
primarily due to higher average selling prices resulting from higher market
oil prices along with lower operating costs. Offsetting these increases were
increased derivative losses and higher royalty and transportation costs. As
discussed above, many of the factors driving the higher operating netback are
associated with the Viewfield Bakken resource play, which realizes narrow
price differentials, low royalty rates and operating costs. The Viewfield
Bakken netback realized for the second quarter of 2008 was $94.03 per boe.
    The operating netback for the six month period ended June 30, 2008
increased 50 percent to $56.90 per boe compared to $37.81 for the same period
in 2007. The increase in the Trust's operating netback relates to same factors
as the three month period ended June 30, 2008.
    After adjusting for the Trust's derivative crystallization, the Trust's
netback for the second quarter was reduced by $10.37 per boe to $50.67 per
boe. The six month period ended June 30, 2008 was reduced by $5.24 per boe to
$51.66 per boe. As discussed this realized derivative crystallization loss
will be recovered through higher reset derivative prices entered into in 2009
and 2010.

    
    -------------------------------------------------------------------------
                                       Three months ended June 30
                                      2008                     2007
    -------------------------------------------------------------------------
                               Crude Oil  Natural
                                 and NGL      Gas    Total    Total        %
                                  ($/bbl)  ($/mcf)  ($/boe)  ($/boe)  Change
    -------------------------------------------------------------------------
    Average selling price         115.48    10.45   108.46    60.54       79
    Royalties                     (21.46)   (1.82)  (20.06)  (11.77)      70
    Operating expenses             (8.93)   (1.30)   (8.78)   (9.44)      (7)
    Transportation                 (2.09)   (0.19)   (1.97)   (1.61)      22
    -------------------------------------------------------------------------
    Netback prior to realized
     derivatives                   83.00     7.14    77.65    37.72      106
    -------------------------------------------------------------------------
    Realized gain (loss) on
     derivatives                  (19.09)   (0.08)  (16.61)    0.72   (2,407)
    -------------------------------------------------------------------------
    Operating netback              63.91     7.06    61.04    38.44       59
    -------------------------------------------------------------------------
    Realized loss on derivative
     crystallization(1)           (11.96)       -   (10.37)       -        -
    -------------------------------------------------------------------------
    Netback                        51.95     7.06    50.67    38.44       32
    -------------------------------------------------------------------------
    (1) The Trust realized a $34.5 million loss in the second quarter of 2008
        resulting from the crystallization of various oil contracts.


    -------------------------------------------------------------------------
                                        Six months ended June 30
                                      2008                     2007
    -------------------------------------------------------------------------
                               Crude Oil  Natural
                                 and NGL      Gas    Total    Total   %
                                  ($/bbl)  ($/mcf)  ($/boe)  ($/boe)  Change
    -------------------------------------------------------------------------
    Average selling price         103.07     9.11    96.67    58.62       65
    Royalties                     (18.62)   (1.45)  (17.31)  (10.68)      62
    Operating expenses             (8.45)   (1.59)   (8.59)   (9.42)      (9)
    Transportation                 (2.26)   (0.20)   (2.11)   (1.65)      28
    -------------------------------------------------------------------------
    Netback prior to realized
     derivatives                   73.74     5.87    68.66    36.87       86
    -------------------------------------------------------------------------
    Realized gain (loss) on
     derivatives                  (13.52)   (0.03)  (11.76)    0.94   (1,351)
    -------------------------------------------------------------------------
    Operating netback              60.22     5.84    56.90    37.81       50
    -------------------------------------------------------------------------
    Realized loss on derivative
     crystallization(1)            (6.03)       -    (5.24)       -        -
    -------------------------------------------------------------------------
    Netback                        54.19     5.84    51.66    37.81       37
    -------------------------------------------------------------------------
    (1) The Trust realized a $34.5 million loss in the second quarter of 2008
        resulting from the crystallization of various oil contracts.
    

    General and Administrative Expenses

    General and administrative expenses per boe increased 86 percent in the
second quarter of 2008 and 24 percent for the six month period ended June 30,
2008, compared to the same periods in 2007 due to the Board of Directors
awarding a special bonus to employees of the Trust in June 2008 to recognize
their efforts contributing to the successful growth and net asset value
appreciation of the Trust over the past two and a half years.
    Excluding the special bonus award, general and administration expenses
for the second quarter 2008 decreased by 24 percent to $1.33 per boe from
$1.76 per boe. For the six month period June 30, 2008 excluding the special
bonus award, general and administration expenses decreased by 32 percent to
$1.18 per boe from $1.74 per boe.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per                          %                         %
     boe amounts)            2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    General and
     administrative costs  15,391    5,103     202   20,399    9,974     105
    Capitalized            (4,505)    (920)    390   (6,192)  (1,880)    229
    -------------------------------------------------------------------------
    General and
     administrative
     expenses              10,886    4,183     160   14,207    8,094      76
    Per boe                  3.27     1.76      86     2.16     1.74      24
    -------------------------------------------------------------------------
    

    Restricted Unit Bonus Plan

    The Trust has a Restricted Unit Bonus Plan and under the terms of this
plan, the Trust may grant restricted units to directors, officers, employees
and consultants. Restricted units vest at 33 1/3 percent on each of the first,
second and third anniversaries of the grant date or at a date approved by the
Board of Directors. Restricted unitholders are eligible for monthly
distributions, immediately upon grant.
    On May 30, 2008, at the annual general meeting, the unitholders approved
an increase in the maximum number of trust units issuable under the Restricted
Unit Bonus Plan from 5,000,000 units to 11,000,000 units. The Trust had
1,605,267 restricted units outstanding at June 30, 2008 compared with
1,378,200 units outstanding at June 30, 2007.
    The Trust recorded compensation expense and contributed surplus of
$4.4 million for the second quarter ended June 30, 2008, based on the fair
value of the units on the date of grant, an increase of 17 percent over the
same period of 2007. Additionally, the Trust recorded $0.5 million of cash
distributions on restricted units, an increase of 43 percent from $0.3 million
in the second quarter 2007. The total cash and non-cash unit based
compensation recorded in the second quarter of 2008 was $4.9 million as
compared to $4.1 million for the same 2007 period. The increase in the number
of restricted units and corresponding unit-based compensation expense is
attributable to the growth in the Trust's operations and industry pressures to
retain and attract high quality employees. A similar trend was experienced for
the six month period ended June 30, 2008 as compared to 2007.
    On a per boe basis, unit-based compensation decreased 15 percent and
14 percent for the three and six month periods ending June 30, 2008 compared
to the same periods of 2007, primarily due to increased production.
    On June 23, 2008, the Board of Directors approved the issuance effective
July 1, 2008 of 551,622 restricted units to employees of the Trust in
conjunction with the special bonus award.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per                          %                         %
     boe amounts)            2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Cash unit-based
     compensation expense     495      345      43    1,171      785      49
    Non-cash unit-based
     compensation expense   4,369    3,746      17    8,475    7,066      20
    -------------------------------------------------------------------------
    Total                   4,864    4,091      19    9,646    7,851      23
    Per boe                  1.46     1.72     (15)    1.46     1.69     (14)
    -------------------------------------------------------------------------
    

    Interest Expense

    Interest per boe increased 17 percent in the second quarter 2008 compared
to the same period in 2007. For the six month period ended June 30, 2008,
interest per boe increased 20 percent over the comparable period in 2007.
These increases are attributable to increased amounts drawn under credit
facilities, reflecting the growth of the Trust's asset base and operations.
This increase was partially offset by a decrease in the Trust's effective
interest rate resulting from a decrease in the prime interest rate and related
banker's acceptance rates over the comparable 2007 period.
    Crescent Point actively manages exposure to fluctuations in interest
rates through interest rate swaps and short term banker's acceptances (refer
to Derivatives and Risk Management section above).

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per                          %                         %
     boe amounts)            2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Interest expense        7,957    4,853      64   15,270    8,971      70
    Per boe                  2.39     2.04      17     2.32     1.93      20
    -------------------------------------------------------------------------
    

    Depletion, Depreciation and Amortization

    The depletion, depreciation and amortization ("DD&A") rate decreased
slightly to $22.94 per boe for the three month ended period June 30, 2008 from
$24.17 in the same period of 2007. The trend for the six month period ended
June 30, 2008 was consistent with the three month period. The lower DD&A rate
in both the three and six month periods ended June 30, 2008 is due to the
increased reserves from positive technical revisions relative to the capital
spending on drilling and acquisitions completed in 2007 and 2008.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except per                          %                         %
     boe amounts)            2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Depletion,
     depreciation
     and amortization      76,286   57,549      33  152,399  112,115      36
    Per boe                 22.94    24.17      (5)   23.14    24.07      (4)
    -------------------------------------------------------------------------
    

    Taxes

    Capital and other tax expense consists of Saskatchewan Corporation
Capital Tax Resource Surcharge. Capital and other tax expense for the second
quarter of 2008 increased 55 percent over 2007 due to an increase in the
Trust's Saskatchewan based production, primarily as a result of the Mission,
Innova and Pilot acquisitions completed over the past year and an increase in
the Trust's realized oil prices. The trend was consistent for the six month
period ended June 30, 2008.
    Future income tax fluctuated from a $152.3 million future income tax
expense in the second quarter of 2007 to a $17.4 million future income tax
recovery in the second quarter of 2008. The expense in the second quarter of
2007 reflects the recognition of the trust tax, which was substantively
enacted in the second quarter of 2007. The recovery in the second quarter of
2008 relates primarily to changes in temporary differences expected to reverse
in 2011 and onward. The most significant change in temporary differences
relates to an increase in the amount of the unrealized derivative loss for
2011 derivative contracts.
    The future income tax recovery of $11.2 million for the six month period
ended June 30, 2008 is also attributable to the increase in unrealized
derivatives losses relating to 2011 derivative contracts. Partially offsetting
this recovery were increases in future tax liabilities, as there was a larger
distribution of income and temporary differences to corporate entities during
the period, which are taxed at higher rates than the trust entities.
    On June 9, 2008, the Federal government's Bill C-50, the 2008 budget
implementation act, passed third reading. Bill C-50 includes amendments to the
provincial component of trust tax. Beginning with the 2009 taxation year, the
provincial component of trust tax will be based on the general provincial
corporate tax rate in each province in which the trust has a permanent
establishment instead of the deemed 13 percent provincial tax rate. As the
income tax regulations pertaining to the provincial tax rates were not
released at June 30, 2008, the change in the provincial component of trust tax
is not considered substantively enacted and the changes to the provincial tax
rates have not been reflected in the future income tax figures.
    On July 14, 2008, the Department of Finance released draft legislation to
allow the conversion of SIFT trusts into corporations. The legislation has two
main elements. The first allows unitholders to sell their units to a taxable
Canadian corporation on a tax-deferred basis. The second element provides two
alternatives for the tax-deferred elimination of trusts. The draft legislation
provides that trusts will have a limited period of time, until December 31,
2012, to convert to corporations on a tax-deferred basis. The draft
legislation also included draft income tax regulations regarding the
calculation of the provincial tax rate which will apply as part of the SIFT
tax. Crescent Point is currently reviewing the impact of the legislative
amendments to the Trust's structure, however the Trust expects the proposals
to provide the Trust with the ability to efficiently convert from its current
structure to a corporate structure on a tax-deferred basis.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
                                               %                         %
    ($000)                   2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Capital and other
     tax expense            6,205    4,000      55   10,977    7,211      52
    Future income tax
     expense (recovery)   (17,384) 152,346    (111) (11,219)  (6,471)    (73)
    -------------------------------------------------------------------------
    

    Funds Flow, Cash Flow and Net Income

    Funds flow from operations increased to $143.0 million in the second
quarter of 2008 from $78.2 million in the second quarter of 2007 and increased
to $1.13 per unit - diluted from $0.77 per unit - diluted, respectively. The
increase in funds flow from operations and funds flow from operations per
unit - diluted is primarily the result of the Trust's higher operating
netbacks and production volumes. The Trust's operating netback increased by
59 percent due primarily to significantly higher Cdn$ WTI benchmark pricing,
partially offset by higher realized derivative losses. The Trust's production
also increased 40 percent, largely as a result of the acquisitions of Innova,
Pilot and the farmout agreement with Shelter Bay completed over the past year,
combined with the Trust's successful drilling program.
    In the six month period ending June 30, 2008, funds flow from operations
increased 98 percent to $298.7 compared to $151.1 million in the same period
of 2007, due to higher operating netbacks and increased production volumes.
    Funds flow from operations per unit - diluted increased 51 percent to
$2.41 per unit - diluted, consistent with the explanation for the three month
period.
    Cash flow from operating activities for the second quarter 2008 increased
to $140.2 million from $102.6 million in the second quarter 2007. Cash flow
from operating activities per unit - diluted increased 10 percent to $1.11 per
unit - diluted in the second quarter 2008. In the six month period ending
June 30, 2008, cash flow from operating activities increased 100 percent to
$305.5 million, compared to $152.8 million for the same period in 2007, for
the same reasons discussed above, as well as changes in working capital.
    The net loss for the second quarter of 2008 increased to $353.7 million
from a loss of $117.8 million in the second quarter of 2007, primarily as a
result of the $89.7 million realized hedge loss and the $430.8 million
unrealized losses on derivatives. These losses were the result of
significantly higher $Cdn WTI forward pricing at June 30, 2008 compared to the
prior year. The trend in the net loss per unit - diluted was also driven by
the same factors.
    The Trust recorded a net loss of $395.1 million for the six month period
ended June 30, 2008, as compared to a net income of $39.8 million for the same
period in 2007, due to realized derivative losses of $111.9 million and
unrealized derivative losses of $540.6 million in 2008 compared to realized
derivative income of $4.4 million and $3.4 million in unrealized derivative
gains in 2007. The 2008 losses were the result of significantly higher $Cdn
WTI forward pricing at June 30, 2008 compared to the prior year.
    Excluding the derivative crystallization of $34.5 million funds flow from
operations for the second quarter 2008 would have been $177.5 million or $1.41
per unit - diluted and $333.1 million or $2.68 per unit - diluted for the six
month period ended June 30, 2008. Cash flow from operating activities for the
second quarter 2008 excluding the derivative crystallization would have been
$174.7 million or $1.39 per unit - diluted and $339.9 million or $2.74 per
unit - diluted for the six month period ended June 30, 2008. Net income would
have been $319.2 million for the second quarter and $360.6 million for the six
months ended June 30, 2008 if the $34.5 million derivative crystallization
would have been excluded. Lastly, the realized hedge loss for the quarter
would have been $55.2 million and $77.4 million for the second quarter and six
month period ended June 30, 2008.
    As noted in the Derivatives and Risk Management section, the Trust has
not designated any of its risk management activities as accounting hedges
under the CICA Handbook section 3855 and, accordingly, has marked-to-market
its derivatives.
    Crescent Point uses financial derivatives, including swaps, costless
collars and put options, to reduce the volatility of the selling price of its
crude oil and natural gas production. This provides a measure of stability to
the Trust's cash flows and distributions over time.
    The Trust's derivatives portfolio extends out 3 1/2 years from the
current quarter.
    The CICA Handbook section 3855 "Financial Instruments - Recognition and
Measurement", gives guidelines for mark to market accounting for financial
derivatives. Financial derivatives that have not settled during the current
quarter are marked to market each quarter. The change in mark to market from
the previous quarter represents a gain or loss that is recorded on the income
statement. As such, if benchmark oil and natural gas prices rise during the
quarter, the Trust records a loss based on the change in price multiplied by
the volume of oil and natural gas hedged. If prices fall during the quarter,
the Trust records a gain. The prices used to record the actual gain or loss
are subject to an adjustment for volatility, then the resulting gain (asset)
or loss (liability) is discounted to a present value using a risk-free rate.
    The Trust's underlying physical reserves are not marked to market each
quarter, hence no gain or loss associated with price changes is recorded; the
Trust realizes the benefit/detriment of any price increase/decrease in the
period which the physical sales occur.
    The Trust's financial results should be viewed with the understanding
that the future gain or loss on financial derivatives is recorded in the
current period's results, while the future value of the underlying physical
sales is not.

    
    -------------------------------------------------------------------------
                      Three months ended June 30    Six months ended June 30
    ($000, except                            %                           %
     per unit amounts)    2008      2007  Change      2008      2007  Change
    -------------------------------------------------------------------------
    Funds flow from
     operations        142,990    78,248      83   298,654   151,123      98
    Funds flow from
     operations per
     unit - diluted(1)    1.13      0.77      47      2.41      1.60      51

    Cash flow from
     operating
     activities        140,181   102,637      37   305,455   152,813     100
    Cash flow from
     operating
     activities
     per unit -
     diluted(1)           1.11      1.01      10      2.46      1.62      52

    Net income (loss) (353,660) (117,773)   (200) (395,124)   39,771  (1,093)
    Net income (loss)
     per unit -
     diluted(1)          (2.83)    (1.17)   (142)    (3.21)     0.43    (847)
    -------------------------------------------------------------------------
    (1) Per unit - diluted is calculated by excluding the cash portion of
        unit based compensation.
    


    Cash Distributions

    On June 16, 2008, the Trust announced a monthly distribution increase
from $0.20 per unit to $0.23 per unit. Distributions for the three and six
month periods ending June 30, 2008 were $0.63 and $1.23 per unit, compared to
$0.60 and $1.20 for the same periods in 2007. The distribution increase is the
result of Crescent Point's growing cash flow per unit, which is due to higher
than expected commodity prices, better than expected production levels and
higher netbacks due to the Trust's successful Bakken drilling program.
Crescent Point is well positioned to maintain its newly increased monthly
distribution over time as the Trust continues to exploit and develop its asset
base. The Trust's risk management strategy minimizes corporate price
volatility which has provided the Trust with the ability to maintain
sustainable distributions through periods of fluctuating market prices.
    The Trust's derivative reset and derivative crystallization program,
discussed above, will provide further certainty to 2009 and 2010 cash flows
and distributions. The impact of resetting the 2009 and 2010 derivatives will
increase the Trust's 2009 and 2010 funds flow from operations. The cash
outflow for the three and six month period ended June 30, 2008 was
$34.5 million.
    The rise in the distributions relates to the increases in the
distribution rate and number of trust units outstanding, resulting from the
acquisitions in the first quarter 2008 along with the two bought deal
financings which closed in September 2007 and January 2008.
    The following table provides a reconciliation of cash distributions:

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
    ($000, except                              %                         %
     per unit amounts)       2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Accumulated cash
     distributions,
     beginning of period  609,175  344,053      77  535,550  290,442      84
    Cash distributions
     declared to
     unitholders(1)        78,635   60,320      30  152,260  113,931      34
    -------------------------------------------------------------------------
    Accumulated cash
     distributions,
     end of period        687,810  404,373      70  687,810  404,373      70
    -------------------------------------------------------------------------

    Accumulated cash
     distributions per
     unit, beginning
     of period              10.26     7.86      31     9.66     7.26      33
    Cash distributions
     declared to
     unitholders per
     unit(1)                 0.63     0.60       5     1.23     1.20       3
    -------------------------------------------------------------------------
    Accumulated cash
     distributions per
     unit, end of period    10.89     8.46      29    10.89     8.46      29
    -------------------------------------------------------------------------
    (1) Cash distributions reflect the sum of the amounts declared monthly to
        unitholders, including distributions under the DRIP and Premium DRIP
        plans.
    

    For the second quarter and six month period ended June 30, 2008, cash
flow from operating activities (including changes in non-cash working capital)
of $140.2 million exceeded cash distributions of $78.6 million. This trend was
consistent for the years 2006 and 2007.
    Cash distributions of $78.6 million for the second quarter and six month
period ended June 30, 2008 exceeded the net loss of $353.7 million. This is
consistent with the trend in distributions for 2007 and 2006. Net income
includes significant non-cash charges that do not impact the cash flow which
in the second quarter of 2008 were $496.7 million and $693.8 million for the
six month period ended June 30, 2008. The non-cash fluctuations include
changes in future income taxes due to changes in the tax rates and tax rules,
unrealized gains and losses on derivatives and unit based compensation.
    Crescent Point does not anticipate cash distributions will exceed cash
flow from operating activities however it is likely they will exceed net
income as noted above given the significant non-cash items that are recorded
such as future income taxes, DD&A, unit-based compensation and unrealized
losses on derivatives. Further, the cash flow from operating activities can be
significantly impacted by large fluctuations in working capital that may vary
quarter-to-quarter but level out over the period.
    An objective of the Trust's distribution policy is to provide unitholders
with relatively stable and predictable monthly distributions. An additional
objective is to retain a portion of funds flow from operations to fund ongoing
development and optimization projects designed to enhance the sustainability
of the Trust's funds flow from operations. Although the Trust strives to
provide unitholders with stable and predictable funds flow from operations,
the percentage of funds flow from operations paid to unitholders each month
may vary according to a number of factors, including fluctuations in resource
prices, exchange rates and production rates, reserves growth, the size of
development drilling programs and the portion thereof funded from funds flow
from operations and the overall level of debt of the Trust. The actual amounts
of the distributions are at the discretion of the Board of Directors. In the
event that commodity prices are higher than anticipated and a cash surplus
develops, such surplus may be used to increase distributions, reduce debt
and/or increase the capital program.
    The Trust has a strong balance sheet and a balanced three and a half year
derivative profile and is, therefore, well positioned to sustain distributions
over time as Crescent Point continues to exploit and develop its asset base
and actively identify and evaluate acquisition opportunities. As discussed
above, there are many factors impacting the Trust's ability to sustain
distributions. The Trust continues to monitor these factors in connection with
setting long term sustainable distribution levels.
    The following table provides a reconciliation of distributable cash:

    
    -------------------------------------------------------------------------
                  Three months ended    Six months ended          Year ended
                             June 30             June 30
                      2008      2007      2008      2007      2007      2006
    -------------------------------------------------------------------------
    Cash flow from
     operating
     activities    140,181   102,637   305,455   152,813   332,605   177,426
    Net income
     (loss)       (353,660) (117,773) (395,124)   39,771   (32,167)   68,947
    Cash distri-
     butions paid
     or payable     78,635    60,320   152,260   113,931   245,108   150,277
    -------------------------------------------------------------------------
    Excess of cash
     flows from
     operating
     activities
     over cash
     distributions
     paid           61,546    42,317   153,195    38,882    87,497    27,149
    -------------------------------------------------------------------------
    Shortfall of
     net income
     (loss) over
     cash distri-
     butions paid (432,295) (178,093) (547,384)  (74,160) (277,275)  (81,330)
    -------------------------------------------------------------------------
    

    Investments in Marketable Securities

    The Trust sold its interest in publicly-traded Painted Pony Petroleum
Ltd. ("Painted Pony") to Shelter Bay for cash consideration of $17.8 million.
The Trust acquired the Painted Pony shares on March 31, 2008 as consideration
for the disposition of natural gas properties in the Cameron/Blair area of
northeast British Columbia; the Trust received 4.1 million shares of Painted
Pony valued at $17.8 million or $4.33 per share and cash of $3.6 million.

    Long-Term Investments

    During the first quarter of 2008, the Trust invested in Shelter Bay, a
private Bakken light oil growth company. At that time, the Trust also entered
into a Call Obligation Agreement with Shelter Bay in exchange for Special
Voting Shares. Pursuant to the agreement, the Trust committed to subscribe for
additional Class A Common Shares of Shelter Bay for approximately
$45.4 million. In exchange for this capital commitment, the Trust received
45.4 million Special Voting Shares. At which time Shelter Bay exercises its
right to require the Trust to subscribe for shares, the Trust is obligated to
complete its subscription by advancing funds to Shelter Bay within 15 days.
Other major investors of Shelter Bay also participated in Call Obligation
Agreements and will be called to subscribe for shares on a proportionate
basis.
    The Trust accounts for its investment in Shelter Bay using the equity
method.
    The Trust's initial investment of $76.3 million was comprised of
72.6 million Class A Common Shares and 3.5 million Non-Voting Common Shares,
issued for $1.00 per share and representing an interest of 17 percent.
    On May 15, 2008, Shelter Bay exercised in part its call rights under the
Call Obligation Agreements. As a result, the Trust subscribed for
approximately 20 million Class A Common Shares of Shelter Bay for
$20.0 million. At June 30, 2008, the Trust's $94.5 million investment in
Shelter Bay represents an interest of 19 percent, which consists of
92.7 million Class A Common Shares, 3.5 million Non-Voting Common Shares, and
its $1.8 million share of Shelter Bay's net loss.
    Subsequent to the second quarter of 2008, Shelter Bay exercised its
remaining call rights under the Call Obligation Agreements. As a result the
Trust subscribed for approximately $25.4 million Class A Common Shares in July
2008. This subscription satisfies in full the Trust's commitment under the
Call Obligation Agreement. This brings the Trust's total number of shares in
Shelter Bay to 121.5 million.

    Capital Expenditures

    Major Capital Acquisitions

    There were no major acquisitions in the second quarter of 2008.
    Major acquisitions in the first quarter of 2008 included Pilot Energy
Ltd. and the non-Bakken assets of Landex Petroleum Corp.

    Pilot Energy Ltd.

    On January 16, 2008, the Trust purchased all the issued and outstanding
shares of Pilot Energy Ltd., a publicly traded company with properties in the
Viewfield area of southeast Saskatchewan for total consideration of
approximately $78.5 million, including assumed bank debt and working capital
($93.3 million was allocated to property, plant and equipment). The purchase
was paid for through the issuance of approximately 2.6 million trust units and
was accounted for as a business combination using the purchase method of
accounting. The Trust owned 2.0 million shares of Pilot Energy Ltd. prior to
the closing which it purchased for $2.90 per share or $5.9 million in
November 2007.

    Non-Bakken Assets of Landex Petroleum Corp.

    On March 26, 2008, the Trust closed the acquisition of the non-Bakken
assets of Landex Petroleum Corp. from Shelter Bay for consideration of
approximately $80.0 million ($81.4 million was allocated to property, plant
and equipment). The purchase was paid for with approximately 3.1 million trust
units and $5.0 million of cash from the Trust's existing bank line.

    Minor Property Acquisitions and Dispositions

    During the three months ended June 30, 2008, the Trust closed one
property acquisition for consideration of approximately $0.3 million
($0.5 million was allocated to property, plant and equipment). The Trust also
closed one property disposition for consideration of approximately
$0.2 million ($0.2 million was recorded as reduction to property, plant and
equipment). Purchase price adjustments recorded were $1.6 million on
previously closed acquisitions for the three months ended June 30, 2008.
    During the six months ended June 30, 2008, the Trust closed property
dispositions for net consideration of approximately $28.7 million
($30.4 million was recorded as reduction to property, plant and equipment) and
one property acquisition for $0.3 million ($0.5 million was allocated to
property, plant and equipment). The Trust also recorded purchase price
adjustments of $2.5 million on previously closed acquisitions.

    Development Capital

    The Trust's development capital expenditures for the second quarter of
2008 were $124.5 million, compared to $42.4 million for the same period of
2007. In the second quarter of 2008, 33 wells (25.5 net) were drilled with a
success rate of 100 percent. The development capital of $124.5 million for the
quarter included $65.4 million on facilities, land and seismic.

    
    -------------------------------------------------------------------------
                        Three months ended June 30  Six months ended June 30
                                               %                         %
    ($000)                   2008     2007  Change     2008     2007  Change
    -------------------------------------------------------------------------
    Capital acquisitions
     (net)(1)               1,710   14,122     (88) 132,648  639,252     (79)
    Development capital
     expenditures         124,487   42,416     193  241,382   74,746     223
    Capitalized
     administration         4,505      920     390    6,192    1,880     229
    Office equipment          433    1,377     (69)     570    1,597     (64)
    -------------------------------------------------------------------------
    Total                 131,135   58,835     123  380,792  717,475     (47)
    -------------------------------------------------------------------------
    (1) Capital acquisitions represent total consideration for the
        transactions including bank debt and working capital assumed.
    

    The Trust's revised capital program for 2008 is approximately
$425.0 million, not including acquisitions. The Trust searches for
opportunities that align with strategic parameters and evaluates each prospect
on a case-by-case basis. The Trust's acquisitions are expected to be financed
through bank debt and new equity issuances where applicable within the federal
government's Safe Harbour Limits on equity issuance.

    Goodwill

    The goodwill balance of $68.4 million as at June 30, 2008 is attributable
to the corporate acquisitions of Tappit Resources Ltd., Capio Petroleum
Corporation and Bulldog Energy Inc. during the period 2003 through 2005.

    Asset Retirement Obligation

    The asset retirement obligation decreased by $4.7 million during the
second quarter of 2008 primarily as a result of the Trust's adoption of the
most current reserve report and assumptions. The decrease is primarily due to
the increased reserve lives in the Viewfield area due to new technology
enhancing their recoverability, resulting in a $5.9 million downward revision
to the obligation and liabilities settled of $0.3 million. Offsetting these
decreases were accretion expense of $1.4 million and liabilities incurred of
$0.1 million.
    The reclamation fund increased $1.3 million during the second quarter of
2008. This increase relates to an increase in contributions of $2.2 million
offset by expenditures of $0.9 million. Contributions to the fund were
increased from $0.25 per barrel to $0.30 per barrel of production beginning
April 1, 2008. A lump sum of $1.0 million was added to the fund relating to
the Pilot acquisition. The Board of Directors and management review the
adequacy of the fund annually and adjust contributions as necessary.

    Liquidity and Capital Resources

    At June 30, 2008, the Trust had a syndicated credit facility with ten
banks and an operating credit facility with one Canadian chartered bank. As at
June 30, 2008, the Trust had bank debt of $650.7 million, leaving unutilized
borrowing capacity of $349.3 million.
    As at June 30, 2008, Crescent Point was capitalized with 11 percent net
debt and 89 percent equity, an eight percent change from December 31, 2007.
The Trust's net debt to funds flow from operations ratio at June 30, 2008 was
1.1 times (December 31, 2007 - 1.8 times). The Trust has focused on reducing
its bank indebtedness to achieve a net debt to cash flow ratio of less than
1.0 times and will continue to focus on this through 2008. The Trust's
projected net debt to 12 month cash flow is 1.0 times.
    The Trust's ability to raise new equity will be limited by the Safe
Harbour Limit guidelines as announced by the Federal Government. The Federal
Government's decision to tax income trusts has created uncertainty in the
capital markets regarding the future of the trust sector. However, Crescent
Point believes that it has sufficient capital resources to meet its
obligations given the Trust's significant unutilized borrowing capacity
available and its prior success raising new equity within the guidelines as
demonstrated in 2006 through the first quarter of 2008.

    
    -------------------------------------------------------------------------
    Capitalization Table ($000, except                June 30,   December 31,
     unit, per unit and percent amounts)                 2008           2007
    -------------------------------------------------------------------------
    Bank debt                                         650,704        595,984
    Working capital(1)                                (14,973)        54,104
    -------------------------------------------------------------------------
    Net debt(1)                                       635,731        650,088
    Trust units outstanding                       124,820,634    113,760,732
    Market price at end of period (per unit)            40.38          24.81
    Market capitalization                           5,040,257      2,822,404
    -------------------------------------------------------------------------
    Total capitalization                            5,675,988      3,472,492
    -------------------------------------------------------------------------
    Net debt as a percentage of
     total capitalization (%)                              11             19
    -------------------------------------------------------------------------
    Annualized funds flow from operations(2)          571,960        355,910
    -------------------------------------------------------------------------
    Net debt to funds flow from operations(3)             1.1            1.8
    -------------------------------------------------------------------------
    (1) Working capital and net debt include long-term investments, but
        exclude the risk management liabilities and assets.

    (2) Excluding the $34.5 million derivative crystallization realized
        annualized funds flow from operations would be $709.9 million and
        0.9 net debt to funds flow from operations.

    (3) The net debt reflects the financing of acquisitions, however the
        funds flow from operations only reflects funds flow from operations
        generated from the acquired properties since the closing dates of the
        acquisitions.


    Unitholders' Equity

    At June 30, 2008, Crescent Point had 124.8 million trust units issued and
outstanding compared to 113.8 million trust units at December 31, 2007. The
increase by 11.0 million trust units relates primarily to the bought deal
financing and the acquisition of Pilot in January 2008, combined with the
issuance of units for a property acquisition in March 2008:

    -   The Trust and a syndicate of underwriters closed a bought deal equity
        financing on January 8, 2008 pursuant to which the syndicate sold
        5.2 million trust units at $24.25 per trust unit for gross proceeds
        of $125.0 million.

    -   The Trust issued 2.6 million trust units to Pilot shareholders at a
        price of $23.12 per trust unit on closing of the acquisition on
        January 16, 2008.

    -   On March 26, 2008, the Trust issued 3.1 million trust units at $24.08
        per unit in respect of the southeast Saskatchewan property
        acquisition from Shelter Bay, which was completed in conjunction with
        Shelter Bay's closing of the Landex acquisition.
    

    Crescent Point's total capitalization increased 63 percent to
$5.7 billion at June 30, 2008 compared to $3.5 billion at December 31, 2007,
with the market value of the trust units representing 89 percent of the total
capitalization. The increase in capitalization is attributable to the increase
in the number of units outstanding along with a significant appreciation in
the unit trading price. During the second quarter of 2008, the Trust's units
appreciated significantly, trading in the range of $28.39 to $41.40 per unit,
with an average daily trading volume of 724,929 units.

    Critical Accounting Estimates

    The preparation of the Trust's financial statements requires management
to adopt accounting policies that involve the use of significant estimates and
assumptions. These estimates and assumptions are developed based on the best
available information and are believed by management to be reasonable under
the existing circumstances. New events or additional information may result in
the revision of these estimates over time. A summary of the significant
accounting policies used by Crescent Point can be found in Note 2 to the
December 31, 2007 consolidated financial statements.

    New Accounting Pronouncements

    Accounting Changes in the Current Period

    Financial Instruments

    On January 1, 2008, the Trust adopted the following CICA Handbook
sections:

    
    -   Section 3862 "Financial Instruments - Disclosures" and Section 3863
        "Financial Instruments - Presentation". The new disclosure standards
        increase the Trust's disclosure regarding the nature and extent of
        the risks associated with financial instruments and how those risks
        are managed (see Note 13 to the unaudited interim consolidated
        financial statements for the quarter ended June 30, 2008).

    -   Section 1535 "Capital Disclosures". The new standard requires the
        Trust to disclose objectives, policies and processes for managing its
        capital structure (see Note 9 to the unaudited interim consolidated
        financial statements for the quarter ended June 30, 2008).
    

    Future Accounting Pronouncements

    The CICA issued Section 3064, "Goodwill and Other Intangible Assets",
replacing Section 3062, "Goodwill and Other Intangible Assets" and
Section 3450, "Research and Development Costs". This new standard establishes
standards for the recognition, measurement, presentation and disclosure of
goodwill and intangible assets subsequent to its initial recognition.
Standards concerning goodwill are unchanged from the standards included in the
previous Section 3062. This standard is effective on January 1, 2009. The
Trust has not assessed the impact of this standard on its financial
statements.
    On February 13, 2008, the Accounting Standards Board confirmed that the
transition date to International Financial Reporting Standards ("IFRS") from
Canadian GAAP will be January 1, 2011 for publicly accountable enterprises. As
the Trust will be required to report its results in accordance with IFRS
starting in 2011, the Trust is assessing the potential impacts of this
changeover and is developing its implementation plan accordingly.

    Internal Controls Update

    Crescent Point is required to comply with Multilateral Instrument 52-109
"Certification of Disclosure in Issuers' Annual and Interim Filings". The 2008
certificate requires that the Trust disclose in the interim MD&A any changes
in the Trust's internal control over financial reporting that occurred during
the period that has materially affected, or is reasonably likely to materially
affect the Trust's internal control over financial reporting. The Trust
confirms that no such changes were made to the internal controls over
financial reporting during the second quarter of 2008.


    
    Summary of Quarterly Results
    -------------------------------------------------------------------------
                                           2008                  2007
    ($000, except per unit amounts)    Q2         Q1         Q4         Q3
    -------------------------------------------------------------------------
    Revenues                        360,685    275,979    214,748    164,368

    Net income (loss)(1)(5)(6)     (353,660)   (41,464)   (90,348)    18,410
    Net income (loss) per
     unit(1)(5)                       (2.83)     (0.34)     (0.80)      0.18
    Net income (loss) per unit -
     diluted(1)(5)                    (2.83)     (0.34)     (0.80)      0.18

    Cash flow from operating
     activities(6)(1)               140,181    165,274     99,070     80,722
    Cash flow from operating
     activities per unit               1.12       1.37       0.88       0.79
    Cash flow from operating
     activities per unit - diluted     1.11       1.35       0.87       0.78

    Funds flow from
     operations(6)(1)               142,990    155,664    112,572     92,215
    Funds flow from operations
     per unit                          1.15       1.29       1.00       0.90
    Funds flow from operations
     per unit - diluted                1.13       1.28       0.99       0.89

    Working capital(2)               14,973     20,157    (54,104)    (9,908)
    Total assets                  2,987,069  2,918,199  2,613,432  2,106,227
    Total liabilities             1,856,144  1,358,676  1,196,429    555,233
    Net debt(2)                     635,731    565,475    650,088    208,554
    Total long-term financial
     liabilities                    377,580    124,351     59,652          -

    Weighted average trust units -
     diluted (thousands)(3)         126,426    122,615    114,623    104,074

    Capital expenditures(4)         131,135    249,657    506,231     80,488

    Cash distributions               78,635     73,625     67,971     63,206
    Cash distributions per unit        0.63       0.60       0.60       0.60
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                           2007                  2006
    ($000, except per unit amounts)    Q2         Q1         Q4         Q3
    -------------------------------------------------------------------------
    Revenues                        144,179    128,880    100,960    119,365

    Net income (loss)(1)(5)(6)     (117,773)   157,544      6,918     39,588
    Net income (loss) per
     unit(1)(5)                       (1.17)      1.83       0.10       0.61
    Net income (loss) per unit -
     diluted(1)(5)                    (1.17)      1.80       0.10       0.58

    Cash flow from operating
     activities(6)(1)               102,637     50,176     39,313     50,910
    Cash flow from operating
     activities per unit               1.02       0.58       0.58       0.78
    Cash flow from operating
     activities per unit - diluted     1.01       0.58       0.56       0.75

    Funds flow from
     operations(6)(1)                78,248     72,875     43,843     52,774
    Funds flow from operations
     per unit                          0.78       0.84       0.64       0.81
    Funds flow from operations
     per unit - diluted                0.77       0.84       0.63       0.78

    Working capital(2)              (23,346)    13,044     26,533     29,354
    Total assets                  2,051,979  2,076,521  1,373,466  1,351,245
    Total liabilities               656,693    534,299    467,086    448,483
    Net debt(2)                     353,416    340,612    227,905    212,073
    Total long-term financial
     liabilities                      7,286     16,107     11,697      8,650

    Weighted average trust units -
     diluted (thousands)(3)         101,681     87,537     69,764     67,810

    Capital expenditures(4)          58,835    658,640     32,925     94,548

    Cash distributions               60,320     53,611     41,322     39,890
    Cash distributions per unit        0.60       0.60       0.60       0.60
    -------------------------------------------------------------------------
    (1) Per unit - diluted is calculated excluding the cash portion of
        unit-based compensation. Net income per unit diluted is calculated
        using the net income before non-controlling interest.

    (2) Working capital and net debt include long-term investments, but
        exclude the risk management liabilities and assets.

    (3) The trust units issuable on conversion of the exchangeable shares
        reflect the weighted average exchangeable shares outstanding
        converted at the exchange ratio in effect at the end of the period.
        For the fourth quarter 2006 amounts, the exchangeable share ratio
        applied is the one in effect for the October 27, 2006 redemption.

    (4) Capital expenditures includes capital acquisitions. Capital
        acquisitions represent total consideration for the transactions
        including bank debt and working capital assumed. Prior period results
        have been restated to conform to current period presentation.

    (5) Net income for the first quarter of 2007 includes the $158.8 million
        future income tax recovery resulting from the March 1, 2007
        reorganization. Net income for the second quarter of 2007 includes
        the $152.3 million future income tax expense resulting from the
        June 12, 2007 Bill C-52 Budget Implementation Act that was
        substantively enacted.

    (6) The second quarter of 2008's net loss, cash flow from operating
        activities and funds flow from operations include a realized
        derivative loss of $34.5 million for the crystallization of various
        oil derivative contracts.
    

    Crescent Point's revenue has increased due to several corporate and
property acquisitions completed over the past two years and the Trust's
successful drilling program. Significant increases in the Cdn$ WTI benchmark
price and narrower corporate oil differentials also contributed to the
increase in revenues.
    The overall growth of the Trust's asset base also contributed to the
general increase in funds flow from operations and cash flow from operating
activities. Higher market oil prices and narrower corporate oil differentials
also contributed to this trend.
    Net income through 2006 and 2008 has fluctuated primarily due to
unrealized derivative gains and losses on oil and gas contracts, which
fluctuate with the changes in forward market conditions along with
fluctuations in the future income tax expense (recovery). The March 1, 2007
internal reorganization resulted in a $158.8 million future tax recovery in
the first quarter of 2007. Bill C-52 became substantively enacted on June 12,
2007, resulting in the future tax expense of $152.3 million in the second
quarter of 2007.
    Capital expenditures fluctuated through this period as a result of timing
of acquisitions and the development drilling program. The general increase in
funds flow from operations and cash flow from operating activities throughout
the last eight quarters has allowed the Trust to maintain stable monthly cash
distributions over the past two years.

    Outlook

    Crescent Point's 2008 guidance is as follows:

    
    -------------------------------------------------------------------------
                                                                        2008
    Production
      Oil and NGL (bbls/d)                                            31,750
      Natural gas (mcf/d)                                             27,000
    -------------------------------------------------------------------------
    Total (boe/d)                                                     36,250
    -------------------------------------------------------------------------
    Funds flow from operations ($000)                                621,000
    Funds flow from operations per unit - diluted ($)                   4.98
    Cash distributions per unit ($)                                     2.61
    Payout ratio - per unit - diluted (%)                                 52
    -------------------------------------------------------------------------
    Capital expenditures ($000)(1)                                   425,000
    Wells drilled, net                                                   140
    -------------------------------------------------------------------------
    Pricing
      Crude oil - WTI (US$/bbl)                                       110.50
      Crude oil - WTI (Cdn$/bbl)                                      110.50
      Natural gas - Corporate (Cdn$/mcf)                                9.50
      Exchange rate (US$/Cdn$)                                          1.00
    -------------------------------------------------------------------------
    (1) The projection of capital expenditures excludes acquisitions, which
        are separately considered and evaluated.
    

    Additional information relating to Crescent Point, including the Trust's
annual information form, is available on SEDAR at www.sedar.com.



    
    CONSOLIDATED BALANCE SHEETS
    -------------------------------------------------------------------------
                                                              As at
                                                      June 30,   December 31,
    (UNAUDITED) ($000)                                   2008           2007
    -------------------------------------------------------------------------
    ASSETS
      Current assets
        Accounts receivable (Note 13)                 146,462        102,800
        Investments in marketable securities            2,800          1,385
        Prepaids and deposits                           3,963          2,218
        Risk management asset (Note 13)                   432            451
    -------------------------------------------------------------------------
                                                      153,657        106,854
      Long-term investment (Note 4)                    94,524          6,386
      Reclamation fund                                  3,250          2,436
      Property, plant and equipment (Note 5)        2,667,288      2,429,406
      Goodwill                                         68,350         68,350
    -------------------------------------------------------------------------
    Total assets                                    2,987,069      2,613,432
    -------------------------------------------------------------------------

    LIABILITIES
      Current liabilities
        Accounts payable and accrued liabilities      204,069        144,141
        Cash distributions payable                     28,707         22,752
        Bank indebtedness (Note 6)                    650,704        595,984
        Risk management liability (Note 13)           286,453         63,819
    -------------------------------------------------------------------------
                                                    1,169,933        826,696
      Asset retirement obligation (Note 7)             65,194         66,074
      Risk management liability (Note 13)             377,580         59,652
      Future income taxes                             243,437        244,007
    -------------------------------------------------------------------------
    Total liabilities                               1,856,144      1,196,429
    -------------------------------------------------------------------------

    UNITHOLDERS' EQUITY
      Unitholders' capital (Notes 8 & 9)            2,083,692      1,826,423
      Contributed surplus (Note 10)                    19,123         15,086
      Deficit (Note 11)                              (971,890)      (424,506)
    -------------------------------------------------------------------------
    Total unitholders' equity                       1,130,925      1,417,003
    -------------------------------------------------------------------------
    Total liabilities and unitholders' equity       2,987,069      2,613,432
    -------------------------------------------------------------------------
    See accompanying notes to the consolidated financial statements.



    CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME (LOSS) AND
    DEFICIT
    -------------------------------------------------------------------------
                                    Three months ended      Six months ended
    (UNAUDITED) ($000, except                  June 30               June 30
     per unit amounts)                 2008       2007       2008       2007
    -------------------------------------------------------------------------
    REVENUE
      Oil and gas sales             360,685    144,179    636,664    273,059
      Royalties                     (66,698)   (28,023)  (113,990)   (49,767)
      Derivatives
        Realized gains (losses)     (89,721)     1,718   (111,917)     4,363
        Unrealized gains (losses)
         (Note 13)                 (430,765)    18,785   (540,581)     3,427
      Equity and other income
       (losses) (Note 4)             (1,224)         -       (838)         -
    -------------------------------------------------------------------------
                                   (227,723)   136,659   (130,662)   231,082
    EXPENSES
      Operating                      29,197     22,477     56,559     43,867
      Transportation                  6,536      3,834     13,919      7,670
      General and administrative     10,886      4,183     14,207      8,094
      Unit-based compensation
       (Note 10)                      4,864      4,091      9,646      7,851
      Interest on bank indebtedness
       (Note 6)                       7,957      4,853     15,270      8,971
      Depletion, depreciation
       and amortization              76,286     57,549    152,399    112,115
      Accretion on asset retirement
       obligation (Note 7)            1,390      1,099      2,704      2,003
    -------------------------------------------------------------------------
                                    137,116     98,086    264,704    190,571
    -------------------------------------------------------------------------
      Income (loss) before taxes   (364,839)    38,573   (395,366)    40,511
      Capital and other taxes         6,205      4,000     10,977      7,211
      Future income tax expense
       (recovery)                   (17,384)   152,346    (11,219)    (6,471)
    -------------------------------------------------------------------------
      Net income (loss) and
       comprehensive income
       for the period              (353,660)  (117,773)  (395,124)    39,771
    -------------------------------------------------------------------------
      Deficit, beginning of
       period                      (539,595)   (43,298)  (424,506)  (148,699)
      Change in accounting policy         -          -          -      1,468
      Cash distributions paid
       or declared                  (78,635)   (60,320)  (152,260)  (113,931)
    -------------------------------------------------------------------------
      Deficit, end of the period
       (Note 11)                   (971,890)  (221,391)  (971,890)  (221,391)
    -------------------------------------------------------------------------

    Net income (loss) per unit
     (Note 12)
      Basic                           (2.83)     (1.17)     (3.21)      0.43
      Diluted                         (2.83)     (1.17)     (3.21)      0.43
    -------------------------------------------------------------------------
    See accompanying notes to the consolidated financial statements.



    CONSOLIDATED STATEMENTS OF CASH FLOWS
    -------------------------------------------------------------------------
                                    Three months ended      Six months ended
                                               June 30               June 30
    (UNAUDITED) ($000)                 2008       2007       2008       2007
    -------------------------------------------------------------------------
    CASH PROVIDED BY (USED IN)
     OPERATING ACTIVITIES
      Net income (loss) for the
       period                      (353,660)  (117,773)  (395,124)    39,771
      Items not affecting cash
        Equity and other income
         (Note 4)                     1,224          -        838          -
        Future income taxes         (17,384)   152,346    (11,219)    (6,471)
        Unit-based compensation
         (Note 10)                    4,369      3,746      8,475      7,066
        Depletion, depreciation
         and amortization            76,286     57,549    152,399    112,115
        Accretion on asset
         retirement
         obligation (Note 7)          1,390      1,099      2,704      2,003
        Realized gain on sale of
         investment                       -     (1,402)         -     (1,402)
        Unrealized (gains) losses
         on derivatives (Note 13)   430,765    (18,785)   540,581     (3,427)
        Unrealized loss on
         investment                       -      1,468          -      1,468
      Asset retirement
       expenditures (Note 7)           (288)      (197)    (1,579)      (689)
      Change in non-cash working
       capital
        Accounts receivable         (15,983)    31,070    (37,970)    19,976
        Prepaid expenses and
         deposits                    (1,676)     2,152     (1,745)       782
        Accounts payable             15,138     (8,636)    48,095    (18,379)
    -------------------------------------------------------------------------
                                    140,181    102,637    305,455    152,813
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
      Development capital and
       other expenditures          (129,426)   (44,713)  (244,644)   (78,223)
      Capital acquisitions, net
       (Note 5)                      (1,711)   (14,122)      (920)   (55,135)
      Proceeds on sale of
       marketable securities         17,796      1,573     17,796      1,573
      Reclamation fund net
       contributions                 (1,290)      (513)      (814)      (475)
      Long-term investment
       (Note 4)                     (20,040)         -    (96,303)
      Change in non-cash
       working capital
        Accounts receivable             170     (3,457)    (1,139)    (4,724)
        Accounts payable              4,806     15,277      8,958     20,570
    -------------------------------------------------------------------------
                                   (129,695)   (45,955)  (317,066)  (116,414)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
      Issue of trust units, net
       of issue costs                  (673)    27,411    116,221     48,533
      Restricted unit vests               -          -          -       (833)
      Increase (decrease) in bank
       indebtedness                  65,072    (23,586)    41,695     27,881
      Cash distributions            (78,635)   (60,320)  (152,260)  (113,931)
      Change in non-cash working
       capital
        Cash distributions payable    3,750       (191)     5,955      2,274
    -------------------------------------------------------------------------
                                    (10,486)   (56,686)    11,611    (36,076)
    -------------------------------------------------------------------------
    INCREASE (DECREASE) IN CASH           -         (4)         -        323
    CASH AT BEGINNING OF PERIOD           -        532          -        205
    -------------------------------------------------------------------------
    CASH AT END OF PERIOD                 -        528          -        528
    -------------------------------------------------------------------------
    See accompanying notes to the consolidated financial statements.


    Supplementary Information:

    Cash capital taxes paid           6,819      4,029     12,819      7,553
    Cash interest paid                8,366      4,861     13,451     10,601



    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

    JUNE 30, 2008 (UNAUDITED)

    1.  SIGNIFICANT ACCOUNTING POLICIES

    These interim consolidated financial statements of Crescent Point Energy
    Trust ("Crescent Point") or ("the Trust") have been prepared by
    management in accordance with Canadian generally accepted accounting
    principles and follow the same accounting policies as the most recent
    annual audited financial statements, except as described below. The
    specific accounting policies used are described in the annual
    consolidated financial statements appearing on pages 50 through 55 of the
    Trust's 2007 Annual Report. All amounts reported in these statements are
    in Canadian dollars.

    2.  CHANGES IN ACCOUNTING POLICIES

    On January 1, 2008, the Trust adopted the following Canadian Institute of
    Chartered Accountants ("CICA") Handbook sections:

    -   Section 3862 "Financial Instruments - Disclosures", and Section 3863
        "Financial Instruments - Presentation". The new disclosure standards
        increase the Trust's disclosure regarding the nature and extent of
        the risks associated with financial instruments and how those risks
        are managed (see Note 13).

    -   Section 1535 "Capital Disclosures". The new standard requires the
        Trust to disclose objectives, policies and processes for managing its
        capital structure (see Note 9).

    3.  FUTURE ACCOUNTING PRONOUNCEMENTS

    The CICA issued Section 3064, "Goodwill and Other Intangible Assets",
    replacing Section 3062, "Goodwill and Other Intangible Assets" and
    Section 3450, "Research and Development Costs". These new sections
    establish standards for the recognition, measurement, presentation and
    disclosure of goodwill and intangible assets subsequent to its initial
    recognition. Standards concerning goodwill are unchanged from the
    standards included in the previous Section 3062. This standard is
    effective on January 1, 2009. The Trust has not yet assessed the impact
    of this standard on its financial statements.

    On February 13, 2008, the Accounting Standards Board confirmed that the
    transition date to International Financial Reporting Standards ("IFRS")
    from Canadian GAAP will be January 1, 2011 for publicly accountable
    enterprises. As the Trust will be required to report its results in
    accordance with IFRS starting in 2011, the Trust is assessing the
    potential impacts of this changeover and developing is implementation
    plan accordingly.

    4.  LONG TERM INVESTMENT

    During the first quarter of 2008, the Trust invested in Shelter Bay
    Energy Inc. ("Shelter Bay"), a private light oil company. The Trust's
    initial $76.3 million investment was comprised of 72.6 million Class A
    Common Shares and 3.5 million Non-Voting Common Shares issued for $1.00
    per share and representing an interest of 17 percent.

    During the second quarter of 2008, the Trust invested a further
    $20.0 million in Shelter Bay in return for an additional 20.0 million
    Class A Common Shares. At June 30, 2008, the Trust's investment of
    $94.5 million is comprised of 92.7 million Class A Common Shares and
    3.5 million Non-Voting Common Shares and represents an interest of
    19 percent. At June 30, 2008 the Trust recorded its equity share of
    Shelter Bay's loss of $1.8 million.

    Variable Interest Entity

    Shelter Bay is considered a variable interest entity under Accounting
    Guideline 15. However, the Trust is not the primary beneficiary of this
    variable interest entity, and accordingly, the Trust accounts for its
    investment in Shelter Bay using the equity accounting method. Therefore
    the Trust has recorded its share of Shelter Bay's net income (loss) as an
    increase (decrease) to the Trust's net income and as an increase
    (decrease) to the cost of its investment. The Trust's maximum exposure to
    loss as a result of its involvement in Shelter Bay is approximately
    $94.5 million, which includes the carrying value of the Trust's
    investment.

    The following table reconciles the long term investment:

    -------------------------------------------------------------------------
                                                                       ($000)
    -------------------------------------------------------------------------
    Balance, January 1, 2008                                               -
    Investment                                                        96,303
    Share of net loss and comprehensive income for the period         (1,779)
    -------------------------------------------------------------------------
    Balance, June 30, 2008                                            94,524
    -------------------------------------------------------------------------

    Related Party Transactions

    Management and Technical Services Agreement - The Trust entered into a
    Management & Technical Services Agreement with Shelter Bay, effective
    January 11, 2008. Crescent Point is responsible for managing,
    administering and operating the assets and business of Shelter Bay. The
    services are provided in exchange for a monthly management fee. Crescent
    Point billed management fees of $0.8 million to Shelter Bay for the
    second quarter of 2008, and $1.1 million for the six months ended
    June 30, 2008.

    Farm-Out Agreement - Effective January 11, 2008, the Trust entered into a
    farm-out agreement with Shelter Bay. Under the agreement, Shelter Bay has
    the right to farm-in on 22 net sections of Viewfield Bakken lands owned
    by the Trust. Shelter Bay is responsible for paying 100 percent of the
    capital costs and earns a 50 percent interest in production from the
    property, while the Trust retains the other 50 percent production
    interest.

    In the first quarter of 2008, there were two wells drilled by Crescent
    Point immediately prior to the effective date of the farm-out agreement,
    and pursuant to the agreement, these wells were sold by Crescent Point to
    Shelter Bay in exchange for a reimbursement of capital costs, which
    totaled $3.6 million. As this transaction was not in the normal course of
    operations, the disposition of the wells was recorded at the carrying
    amount.

    Farm-Out Note - During the first quarter of 2008, as Shelter Bay
    commenced operations, the Trust entered into a farm-in note with Shelter
    Bay to finance Shelter Bay's capital activities. The principal amount of
    the note was $23.5 million and interest on the note was equivalent to the
    Canadian Chartered Bank Prime Rate plus 2 percent. The principal amount
    of the note was re-paid on March 26, 2008, subsequent to Shelter Bay's
    closing of a private placement. Interest of $0.2 million was charged by
    Crescent Point during the first quarter and collected at the end of
    April.

    Capital Commitment - Pursuant to Shelter Bay's private placement, the
    Trust entered into a Call Obligation Agreement with Shelter Bay in
    exchange for Special Voting Shares. Pursuant to the agreement, the Trust
    committed to subscribe for additional Class A Common Shares of Shelter
    Bay for approximately $45.4 million. In exchange for this capital
    commitment, the Trust received 45.4 million Special Voting Shares. Other
    major investors of Shelter Bay also participated in the Call Obligation
    Agreement and will be called to subscribe for shares. As a result, the
    Trust's equity interest is not expected to change significantly in
    connection with the Call Obligation Agreement.

    On May 15, 2008 Shelter Bay exercised in part its call rights under the
    Call Obligation Agreements. As a result the Trust subscribed for
    20.0 million Class A Common Shares of Shelter Bay for $20.0 million. At
    June 30, 2008, the Trust's interest in Shelter Bay is 19 percent.

    Subsequent to the second quarter 2008 Shelter Bay exercised its remaining
    call rights under the Call Obligation Agreements. As a result the Trust
    subscribed for approximately 25.4 million Class A Common Shares for
    $25.4 million in July 2008. This subscription will satisfy in full the
    Trust's commitment under the Call Obligation Agreement. At July 31, 2008
    the Trust's equity interest was 19 percent.

    Amounts Owing From/Due To - At June 30, 2008, the Trust had $9.1 million
    payable to Shelter Bay for operating activity income received by the
    Trust on Shelter Bay's behalf less the management fees. These payables
    were settled by the Trust at the end of July.

    Property Acquisition & Trust Unit Issuance - In conjunction with the
    closing of Shelter Bay's acquisition of Landex Petroleum Corp. ("Landex")
    on March 26, 2008, the Trust issued 3.1 million trust units valued at
    $75 million and cash of $5 million to Shelter Bay in exchange for an
    $80 million note. The Trust subsequently completed a Saskatchewan
    property acquisition from Shelter Bay for total consideration of
    $80 million, in exchange for settlement of the note.

    The trust unit issuance was recorded at $75 million as this was
    equivalent to the fair value of the consideration received. The property
    acquisition was recorded at the exchange amount of $80 million.

    Property Disposition - On March 26, 2008, the Trust disposed of
    undeveloped land to Shelter Bay for cash consideration of $31.3 million.
    The transaction was recorded at the exchange amount.

    Painted Pony Petroleum Ltd. ("Painted Pony") Share Disposition - The
    Trust entered into an agreement with Shelter Bay to dispose of the
    Painted Pony shares for $17.8 million.

    5.  CAPITAL ACQUISITIONS AND DISPOSITIONS

    a) Major acquisitions

    There were no major acquisitions in the second quarter of 2008.

    Major acquisitions in the first quarter of 2008 included Pilot Energy
    Ltd. and the non-Bakken assets of Landex Petroleum Corp.

    Pilot Energy Ltd.

    On January 16, 2008, the Trust purchased all the issued and outstanding
    shares of Pilot Energy Ltd., a publicly traded company with properties in
    the Viewfield area of southeast Saskatchewan for total consideration of
    approximately $78.5 million, including assumed bank debt and working
    capital ($93.3 million was allocated to property, plant and equipment).
    The purchase was paid for through the issuance of approximately
    2.6 million trust units and was accounted for as a business combination
    using the purchase method of accounting. The Trust owned 2.0 million
    shares of Pilot Energy Ltd. prior to the closing which it purchased for
    $2.90 per share or $5.9 million in November 2007.

    -------------------------------------------------------------------------
                                                                       ($000)
    -------------------------------------------------------------------------
    Net assets acquired
    Working capital                                                    1,678
    Property, plant and equipment                                     93,310
    Bank debt                                                        (13,025)
    Asset retirement obligation                                       (3,341)
    Future income taxes                                              (11,494)
    -------------------------------------------------------------------------
    Total net assets acquired                                         67,128
    -------------------------------------------------------------------------
    Consideration
    Cash                                                               5,912
    Trust units issued (2,628,269 trust units)                        60,766
    Acquisition costs                                                    450
    -------------------------------------------------------------------------
    Total purchase price                                              67,128
    -------------------------------------------------------------------------

    Non-Bakken Assets of Landex Petroleum Corp.

    On March 26, 2008, the Trust closed the acquisition of the non-Bakken
    assets of Landex Petroleum Corp. from Shelter Bay Energy Inc. for
    consideration of approximately $80.0 million ($81.4 million was allocated
    to property, plant and equipment). The purchase was paid for with
    approximately 3.1 million trust units and $5.0 million of cash from the
    Trust's existing bank line. See Note 4 for further disclosures regarding
    the property acquisition.

    b) Minor Property Acquisitions and Dispositions

    During the three months ended June 30, 2008, the Trust closed one
    property acquisition for consideration of approximately $0.3 million
    ($0.5 million was allocated to property, plant and equipment). The Trust
    also closed one property disposition for consideration of approximately
    $0.2 million ($0.2 million was recorded as reduction to property, plant
    and equipment). Purchase price adjustments recorded were $1.6 million on
    previously closed acquisitions for the three months ended June 30, 2008.

    During the six months ended June 30, 2008, the Trust closed property
    dispositions for net consideration of approximately $28.7 million
    ($30.4 million was recorded as reduction to property, plant and
    equipment) and one property acquisition for $0.3 million ($0.5 million
    was allocated to property, plant and equipment). The Trust also recorded
    purchase price adjustments of $2.5 million on previously closed
    acquisitions.

    6.  BANK INDEBTEDNESS

    The Trust has a syndicated credit facility with ten banks and an
    operating credit facility with one Canadian chartered bank. The amount
    available under the combined credit facility was increased from
    $800 million to $1 billion in May 2008. The Trust has letters of credit
    in the amount of $0.4 million outstanding at June 30, 2008.

    The credit facilities bear interest at the prime rate plus a margin based
    on a sliding scale ratio of the Trust's debt to funds flow from
    operations. The Trust also manages its debt facility through a
    combination of banker's acceptances and interest rate swaps. The credit
    facility is secured by the oil and gas assets owned by the Trust's wholly
    owned subsidiaries.

    7.  ASSET RETIREMENT OBLIGATION

    The following table reconciles the asset retirement obligation:

    -------------------------------------------------------------------------
                                                                       ($000)
    -------------------------------------------------------------------------
    Asset retirement obligation, January 1, 2008                      66,074
    Liabilities incurred                                                 909
    Liabilities acquired through capital acquisitions                  4,713
    Liabilities disposed through capital dispositions                 (1,680)
    Liabilities settled                                               (1,579)
    Changes in prior year estimates                                   (5,947)
    Accretion expense                                                  2,704
    -------------------------------------------------------------------------
    Asset retirement obligation, June 30, 2008                        65,194
    -------------------------------------------------------------------------

    8.  UNITHOLDERS' CAPITAL

    On January 8, 2008, the Trust and a syndicate of underwriters closed a
    bought deal equity financing pursuant to which the syndicate sold
    5,155,000 trust units for gross proceeds of $125.0 million ($24.25 per
    trust unit).

    -------------------------------------------------------------------------
                                                    Number of         Amount
                                                  trust units          ($000)
    -------------------------------------------------------------------------
    Trust units, January 1, 2008                  113,760,732      1,873,523
    Issued for cash                                 5,155,000        125,009
    Issued on capital acquisitions                  5,742,887        135,766
    Issued on vesting of restricted units(1)          162,015          2,450
    -------------------------------------------------------------------------
    Trust units, June 30, 2008                    124,820,634      2,136,748
    -------------------------------------------------------------------------
    Cumulative unit issue costs                             -        (53,056)
    -------------------------------------------------------------------------
    Total unitholders' capital, June 30, 2008     124,820,634      2,083,692
    -------------------------------------------------------------------------
    (1) The amount of trust units issued on vesting of restricted units is
        net of employee withholding taxes.


    9.  CAPITAL MANAGEMENT

    The Trust's capital structure is comprised of unitholders' equity, bank
    debt, cash and working capital. The balance of each of these items is as
    follows:

    -------------------------------------------------------------------------
                                                      June 30,   December 31,
    ($000)                                               2008           2007
    -------------------------------------------------------------------------
    Bank debt                                         650,704        595,984
    Working capital(1)                                (14,973)        54,104
    -------------------------------------------------------------------------
    Net debt                                          635,731        650,088
    Unitholders' equity                             1,130,925      1,417,003
    -------------------------------------------------------------------------
    Total capitalization                            1,766,656      2,067,091
    -------------------------------------------------------------------------
    (1) Working capital is calculated as current liabilities less current
        assets, including long term investments and excluding risk management
        liabilities and assets.


    The Trust's objective for managing capital is to maintain a strong
    balance sheet and capital base to provide financial flexibility,
    stability to distributions and to position the Trust for future
    development of the business. Ultimately, the Trust strives to maximize
    long-term unitholder value by ensuring the Trust has the financing
    capacity to fund projects that are expected to add value to unitholders
    and distribute any excess cash to unitholders that is not required for
    financing projects.

    The Trust manages and monitors its capital structure and short term
    financing requirements using a non-GAAP measure, the ratio of net debt to
    funds flow from operations. Net debt is calculated as current liabilities
    less current assets, including long term investments and excluding risk
    management liabilities and assets. Funds flow from operations is
    calculated as cash flow from operating activities before changes in
    non-cash working capital and asset retirement expenditures. The Trust's
    objective is to maintain a net debt to funds flow from operations ratio
    of less than 1.0 times. This metric is used to measure the Trust's
    overall debt position and measure the strength of the Trust's balance
    sheet. The Trust monitors this ratio and uses this as a key measure in
    making decisions regarding financing, capital spending and distribution
    levels.

    The Trust strives to provide stability to its distributions over time by
    managing risks associated with the oil and gas industry. To accomplish
    this, the Trust maintains a conservative balance sheet with significant
    unutilized lines of credit and actively hedges commodity prices using a
    three and a half year risk management program and hedging up to
    65 percent of after royalty volumes using a portfolio of swaps, collars
    and put option instruments.

    On June 16, 2008, the Trust announced a distribution increase of $0.03
    per unit to $0.23 per unit, beginning with the June 2008 production
    month, the distribution for which is payable on July 15, 2008.

    Crescent Point is subject to certain financial covenants in its credit
    facility agreements and is in compliance with all financial covenants as
    of June 30, 2008.

    The Trust's ability to raise new equity will be limited by the Safe
    Harbour Limit guidelines as announced by the Federal Government. The
    Federal Government's decision to tax income trusts has created
    uncertainty in the capital markets regarding the future of the trust
    sector. However, Crescent Point believes that it has sufficient capital
    resources to meet its obligations given the Trust's significant
    unutilized borrowing capacity available and its prior success raising new
    equity within the guidelines as demonstrated from 2006 through early
    2008.

    10. RESTRICTED UNIT BONUS PLAN

    A summary of the changes in the restricted units outstanding under the
    plan is as follows:

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Restricted units, January 1, 2008                              1,486,050
    Granted                                                          370,381
    Exercised                                                       (240,003)
    Forfeited                                                        (11,161)
    -------------------------------------------------------------------------
    Restricted units, June 30, 2008                                1,605,267
    -------------------------------------------------------------------------

    A summary of the changes in the contributed surplus is as follows:

    -------------------------------------------------------------------------
                                                                       ($000)
    -------------------------------------------------------------------------
    Contributed surplus, January 1, 2008                              15,086
    Unit-based compensation                                            8,582
    Exercised restricted units                                        (4,438)
    Forfeited restricted units                                          (107)
    -------------------------------------------------------------------------
    Contributed surplus, June 30, 2008                                19,123
    -------------------------------------------------------------------------

    On June 23, 2008, the Board of Directors approved the issuance effective
    July 1, 2008 of 551,622 restricted units to employees of the Trust in
     conjunction with a special bonus award to recognize their efforts
     contributing to the successful growth and net asset value appreciation
     of the Trust in the past two and a half years.

    11. DEFICIT

    The deficit balance is composed of the following items:

    -------------------------------------------------------------------------
                                                                       ($000)
    -------------------------------------------------------------------------
    Accumulated losses                                              (284,080)
    Accumulated cash distributions                                  (687,810)
    -------------------------------------------------------------------------
    Deficit                                                         (971,890)
    -------------------------------------------------------------------------

    The Trust has historically paid cash distributions in excess of
    accumulated earnings as cash distributions are based on cash flow from
    operating activities before changes in non-cash working capital generated
    in the current period while accumulated earnings are based on cash flow
    from operating activities before changes in non-cash working capital
    generated in the current period less depletion, depreciation, and
    accretion expenses recorded on original property, plant, and equipment,
    unrealized derivative gains/losses and other non-cash charges.

    12. PER TRUST UNIT AMOUNTS

    The following table summarizes the weighted average trust units used in
    calculating net income (loss) per trust unit:

    -------------------------------------------------------------------------
                                Three months ended          Six months ended
                                           June 30                   June 30
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    Weighted average
     trust units          124,820,630  100,302,229  122,931,763   93,318,061
    Dilutive impact of
     restricted units       1,605,267    1,378,354    1,588,673    1,329,990
    -------------------------------------------------------------------------
    Dilutive trust units  126,425,897  101,680,583  124,520,436   94,648,051
    -------------------------------------------------------------------------

    13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

    The Trust's financial assets and liabilities are comprised of cash,
    accounts receivable, investments in marketable securities, the
    reclamation fund, risk management assets and liabilities, accounts
    payable, accrued liabilities, cash distributions payable and bank debt.
    Risk management assets and liabilities arise from the use of derivatives.
    Discussions of risks associated with financial assets and liabilities,
    fair values of financial assets and liabilities and summarized
    information related to risk management positions are detailed below:

    a) Risks Associated with Financial Assets and Liabilities

    The Trust is exposed to financial risks from its financial assets and
    liabilities. The financial risks include market risk relating to
    commodity prices, interest rates and foreign exchange rates as well as
    credit and liquidity risk.

    Market Risk

    Market risk is the risk that the fair value or future cash flows of a
    derivative will fluctuate because of changes in market prices. Market
    risk comprised of commodity price risk, interest rate risk and foreign
    exchange risk is discussed below.

    Commodity Price Risk

    The Trust is exposed to commodity price risk on crude oil and natural gas
    revenues as well as power on electricity consumption. As a means to
    mitigate the exposure to commodity price volatility, the Trust has
    entered into various derivative agreements. The use of derivative
    instruments is governed under formal policies and is subject to limits
    established by the Board of Directors.

    Crude Oil - To partially mitigate exposure to the crude oil commodity
    price risk, the Trust enters into option contracts and swaps, which
    manage the Cdn$ WTI price fluctuations.

    Natural gas - The Trust has partially mitigated the natural gas commodity
    price risk by entering into AECO natural gas collars, which manage the
    AECO natural gas price fluctuations.

    Power - To manage the Trust's exposure to electricity price changes, the
    Trust has entered into swaps and fixed price physical delivery contracts
    which fix the power price.

    Interest Rate Risk

    The Trust is exposed to interest rate risk on bank indebtedness to the
    extent of changes in the prime interest rate. Crescent Point partially
    mitigates its exposure to interest rate changes by entering into both
    interest rate swap and banker's acceptance transactions as a means of
    managing the debt portfolio.

    At June 30, 2008, a one percent increase or decrease in the interest rate
    on floating rate debt and interest rate swaps would have amounted to a
    $1.9 million impact to net income for the six month period ended June 30,
    2008. At June 30, 2008, the Trust's outstanding derivative instruments
    utilized for interest rate management activities were in an unrealized
    loss position of $1.0 million.

    Foreign Exchange Risk

    Fluctuations in the exchange rates between the U.S. and Canadian dollar
    can affect the Trust's reported results. Crescent Point's functional and
    reporting currency is Canadian dollars. To partially mitigate this risk
    the Trust has fixed crude oil contracts to settle in Cdn$ WTI.

    Credit Risk

    Credit risk is the risk that one party to a financial instrument will
    cause a financial loss for the other party by failing to discharge an
    obligation. A substantial portion of the Trust's accounts receivable are
    with customers in the oil and gas industry and are subject to normal
    industry credit risks. The Trust monitors the creditworthiness and
    concentration of credit with customers of its physical oil and gas sales.
    The Trust is authorized to transact derivative contracts with
    counterparties rated A (or equivalent) or better, based on the lowest
    rating of the three ratings providers. Should one of the Trust's
    counterparties be downgraded below the A rating limit, the Chief
    Financial Officer will advise the Audit Committee and provide
    recommendations to minimize the Trust's credit risk to that counterparty.
    The maximum credit exposure associated with accounts receivable and risk
    management assets is the total carrying value and the maximum exposure
    associated with the derivative instruments approximates their fair value.

    On July 23, 2008, the Trust announced that it has a potential exposure to
    SemCanada Crude Company ("SemCanada"), a Canadian subsidiary of SemGroup,
    L.P. ("SemGroup"), relating to the marketing of a portion of the Trust's
    physical crude oil and liquids production. The contract pertaining to the
    majority of the production volumes purchased by SemCanada was previously
    terminated and does not represent an ongoing exposure for the Trust.

    SemGroup filed a voluntary petition for reorganization under Chapter 11
    of the Bankruptcy Code in the United States Bankruptcy Court for the
    District of Delaware and SemCanada also filed for creditor protection in
    Canada under The Companies' Creditors Arrangement Act. SemGroup listed
    assets of $6.14 billion and liabilities of $7.53 billion in its US
    bankruptcy filing.

    Crescent Point's exposure is listed in SemGroup's US bankruptcy filing as
    $42.5 million based on SemGroup's forecasts of prices and production
    volumes. The Trust expects the actual exposure to be closer to
    $30 million based on its most recent estimates. As of this date, the
    Trust is not able to quantify the portion, if any, of the exposure that
    will be collected, and as a result a provision has not been recorded.

    Liquidity Risk

    Liquidity risk is the risk that the Trust will encounter difficulty in
    meeting obligations associated with financial liabilities. The Trust
    manages its liquidity risk through cash and debt management. As disclosed
    in Note 9, Crescent Point targets a net debt to funds flow from
    operations ratio of less than 1.0 times.

    In managing liquidity risk, the Trust has access to a wide range of
    funding at competitive rates through capital markets and banks. At
    June 30, 2008, the Trust had available unused borrowing capacity of
    $349.3 million. The Trust believes it has sufficient funding to meet
    foreseeable borrowing requirements.

    The timing of cash outflows relating to financial liabilities is outlined
    in the table below(1):

    -------------------------------------------------------------------------
                                     1 year    2 years    3 years      Total
    -------------------------------------------------------------------------
    Accounts payable and accrued
     liabilities                    204,069          -          -    204,069
    Cash distribution payable        28,707          -          -     28,707
    Risk management liabilities     286,453    227,875    149,705    664,033
    -------------------------------------------------------------------------
    (1) Bank indebtedness is not included in the above table but is a current
        liability.

    Included in Crescent Point's bank indebtedness of $650.7 million at
    June 30, 2008 are obligations of $600 million related to interest rate
    swaps and banker's acceptances, obligations of $54.6 million for
    borrowings under the operating and syndicated prime loans, partially
    offset by prepaid interest on banker's acceptances of $3.9 million. These
    amounts are fully supported and management expects that they will
    continue to be supported by revolving credit and loan facilities that
    have no repayment requirements other than interest.

    b) Fair Value of Financial Assets and Liabilities

    The fair values of cash, accounts receivable, the reclamation fund,
    accounts payable, accrued liabilities, cash distributions payable and
    debt approximates their carrying amounts due to their short-term nature.

    Risk management assets and liabilities and investments in marketable
    securities are recorded at their estimated fair value based on the
    mark-to-market method of accounting, using market forecasts and pricing.

    The following is a summary of the fair value of financial assets and
    liabilities:

    -------------------------------------------------------------------------
                                                        As at          As at
                                                      June 30,   December 31,
                                                         2008           2007
                                                   Fair Value     Fair Value
    -------------------------------------------------------------------------
    Financial Assets
      Held-for-Trading
        Risk management assets(1)                         432            451
        Investments in marketable securities            2,800          1,385
        Long term investments(2)                            -          6,386
      Loans and Receivables
        Accounts receivable                           146,462        102,800
    Financial Liabilities
      Held-for-Trading
        Risk management liabilities(1)                664,033        123,471
      Other Financial Liabilities
        Accounts payable and accrued liabilities      204,069        144,141
        Cash distribution payable                      28,707         22,752
        Bank debt                                     650,704        595,984
    -------------------------------------------------------------------------
    (1) Including current portion.
    (2) Excluding equity investment.


    c) Risk Management Assets and Liabilities

    The Trust entered into fixed price oil, gas, power and interest rate
    contracts to manage its exposure to fluctuations in the price of crude
    oil, gas, power, and interest on debt.

    The following is a summary of the derivative contracts in place as at
    June 30, 2008:

    -------------------------------------------------------------------------
    Financial WTI Crude Oil Contracts - Canadian Dollar(1)

                                               Average    Average
                                    Average     Bought       Sold    Average
                                       Swap        Put       Call        Put
                          Volume      Price      Price      Price    Premium
    Term                 (bbls/d) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl)
    -------------------------------------------------------------------------
    2008 July - December  16,750      78.82      72.94      88.73      (6.66)
    2009                  16,000      83.82      74.03      95.48      (6.03)
    2010                  12,750      85.17      77.08      96.35      (4.51)
    2011 January -
     September             7,000     100.79      94.48     124.35          -
    -------------------------------------------------------------------------
    (1) The volumes and prices reported are the weighted average volumes and
        prices for the period.


    -------------------------------------------------------------------------
    Financial AECO Natural Gas Contracts - Canadian Dollar(1)

                                                          Average    Average
                                                           Bought       Sold
                                                              Put       Call
                                                Volume      Price      Price
    Term                                         (GJ/d)  ($Cdn/GJ)  ($Cdn/GJ)
    -------------------------------------------------------------------------
    2008 July - October                          2,000       6.75       7.75
    -------------------------------------------------------------------------
    (1) The volumes and prices reported are the weighted average volumes and
        prices for the period.


    -------------------------------------------------------------------------
    Financial Interest Rate Contracts - Canadian Dollar

                                                                       Fixed
                                                         Principal    Annual
    Term                                      Contract       ($Cdn)  Rate (%)
    -------------------------------------------------------------------------
    July 2008 - February 2009                     Swap  50,000,000      4.37
    July 2008 - May 2009                          Swap  75,000,000      3.16
    July 2008 - November 2010                     Swap  75,000,000      4.35
    July 2008 - June 2011                         Swap  75,000,000      3.89
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Financial Power Contract - Canadian Dollar
                                                                       Fixed
                                                                        Rate
                                                           Volume      ($Cdn/
    Term                                      Contract      (MW/h)      MW/h)
    -------------------------------------------------------------------------
    July 2008 - December 2008                     Swap        3.0      63.25
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Physical Power Contracts - Canadian Dollar
                                                                       Fixed
                                                                        Rate
                                                           Volume      ($Cdn/
    Term                                      Contract      (MW/h)      MW/h)
    -------------------------------------------------------------------------
    July 2008 - December 2009                     Swap        1.0      82.45
    January 2009 - December 2009                  Swap        3.0      81.25
    January 2010 - December 2010                  Swap        3.0      80.75
    -------------------------------------------------------------------------

    The physical contracts have not been marked-to-market as the power
    acquired is for the Trust's own use. The unrealized gain on the physical
    contracts at June 30, 2008 is $0.2 million.

    The following table reconciles the movement in the fair value of the
    Trust's commodity, power and interest rate contracts:

    -------------------------------------------------------------------------
                                                                       ($000)
    -------------------------------------------------------------------------
    Risk management asset, January 1, 2008                               451
    Unrealized mark-to-market loss                                       (19)
    -------------------------------------------------------------------------
    Risk management asset, June 30, 2008                                 432
    Less: current risk management asset, June 30, 2008                  (432)
    -------------------------------------------------------------------------
    Long term risk management asset, June 30, 2008                         -
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                                       ($000)
    -------------------------------------------------------------------------
    Risk management liability, January 1, 2008                       123,471
    Unrealized mark-to-market loss                                   540,562
    -------------------------------------------------------------------------
    Risk management liability, June 30, 2008                         664,033
    Less: current risk management liability, June 30, 2008          (286,453)
    -------------------------------------------------------------------------
    Long term risk management liability, June 30, 2008               377,580
    -------------------------------------------------------------------------

    Commodity Price Sensitivities on Derivatives

    The following table summarizes the sensitivity of the fair value of the
    Trust's risk management positions to fluctuations in commodity prices,
    with all other variables held constant. When assessing the potential
    impact of these commodity price changes, the Trust believes 10 percent
    volatility is a reasonable measure. Fluctuations in commodity prices
    potentially could have resulted in unrealized gains (losses) impacting
    net income as follows:

    -------------------------------------------------------------------------
    ($000)                                          Impact on Net Income
                                                 Three and Six Months Ended
                                                        June 30, 2008
    -------------------------------------------------------------------------
                                                 Increase 10%   Decrease 10%
    -------------------------------------------------------------------------
    Crude oil price                                  (167,090)       166,607
    -------------------------------------------------------------------------
    Natural gas price                                    (235)           231
    -------------------------------------------------------------------------
    Power price                                           126           (126)
    -------------------------------------------------------------------------

    14. SUBSEQUENT EVENTS

    a) Investment in Shelter Bay Energy Inc.

    Subsequent to the period ended June 30, 2008, the Trust received notice
    from Shelter Bay under the Call Obligation Agreement. Pursuant to the
    notice, the Trust subscribed for approximately $25.4 million Class A
    Common Shares in July 2008.

    15. COMPARATIVE INFORMATION

    Certain information provided for the previous period has been restated to
    conform to the current period presentation.


    Directors                                Legal Counsel

    Peter Bannister, Chairman(1)(3)          McCarthy Tétrault LLP
                                             Calgary, Alberta
    Paul Colborne(2)(4)
                                             Evaluation Engineers
    Ken Cugnet(3)(4)(5)
                                             GLJ Petroleum Consultants Ltd.
    Hugh Gillard(1)(2)(3)                    Calgary, Alberta

    Gerald Romanzin(1)(3)                    Sproule Associates Ltd.
                                             Calgary, Alberta
    Scott Saxberg(4)
                                             Registrar and Transfer Agent
    Greg Turnbull(2)(5)
                                             Investors are encouraged to
    (1) Member of the Audit Committee        contact Crescent Point's
        of the Board of Directors            Registrar and Transfer Agent
    (2) Member of the Compensation           for information regarding
        Committee of the Board of            their security holdings:
        Directors
    (3) Member of the Reserves Committee     Olympia Trust Company
        of the Board of Directors            2300, 125 - 9th Avenue SE
    (4) Member of the Health, Safety and     Calgary, Alberta T2G 0P6
        Environment Committee of the Board   Tel: (403) 261-0900
        of Directors
    (5) Member of the Corporate Governance   Stock Exchange
        Committee
                                             Toronto Stock Exchange - TSX
    Officers
                                             Stock Symbol
    Scott Saxberg
    President and Chief Executive Officer    CPG.UN

    C. Neil Smith                            Investor Contacts
    Vice President, Engineering and
    Business Development                     Scott Saxberg
                                             President and Chief Executive
    Greg Tisdale                              Officer
    Chief Financial Officer                  (403) 693-0020

    Dave Balutis                             Greg Tisdale
    Vice President, Geosciences              Chief Financial Officer
                                             (403) 693-0020
    Tamara MacDonald
    Vice President, Land                     Trent Stangl
                                             Vice President, Marketing and
    Trent Stangl                              Investor Relations
    Vice President, Marketing and            (403) 693-0020
    Investor Relations

    Ken Lamont
    Controller and Treasurer

    Head Office

    Suite 2800, 111 - 5th Avenue SW
    Calgary, Alberta T2P 3Y6
    Tel: (403) 693-0020
    Fax: (403) 693-0070
    Toll Free: (888) 693-0020

    Banker

    The Bank of Nova Scotia
    Calgary, Alberta

    Auditor

    PricewaterhouseCoopers LLP
    Calgary, Alberta

    







For further information:

For further information: Investor Contacts, Scott Saxberg, President and
Chief Executive Officer, (403) 693-0020; Greg Tisdale, Chief Financial
Officer, (403) 693-0020; Trent Stangl, Vice President, Marketing and Investor
Relations, (403) 693-0020

Organization Profile

Crescent Point Energy Corp.

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