Crescent Point Energy Trust announces strategic Bakken consolidation acquisition of Pilot Energy Ltd. via Plan of Arrangement



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

    CALGARY, Oct. 31 /CNW/ - Crescent Point Energy Trust ("Crescent Point" or
the "Trust") (TSX: CPG.UN) and Pilot Energy Ltd. ("Pilot") (TSX-V: PGY) are
pleased to announce that their respective Boards of Directors have unanimously
approved a Proposal (the "Proposal") pursuant to which the Trust will acquire,
by way of Plan of Arrangement (the "Plan"), all of Pilot's issued and
outstanding shares with trust units of Crescent Point. Currently, Pilot is
producing approximately 1,000 boe/d of focused high netback oil, 50 percent of
which is in Crescent Point's core Viewfield Bakken resource play.

    PILOT PLAN

    Under the terms of the Proposal, each issued and outstanding Pilot share
will be exchanged for 0.1284 trust units of Crescent Point. The Plan requires
the requisite approval of Pilot shareholders along with customary regulatory,
court and other approvals. An information circular outlining the Plan is
expected to be mailed by December 15, 2007. Pilot will endeavour to have the
shareholder meeting relating to such approvals on or about January 15, 2008.
This will allow the Plan to be implemented on or before January 31, 2008 which
will enable shareholders of Pilot who receive units of the Trust pursuant to
the Plan to receive the expected January distribution of $0.20 per Crescent
Point trust unit, payable February 15, 2008.
    The total consideration to be paid by Crescent Point to acquire Pilot is
approximately $76 million, comprised of 2.9 million Crescent Point trust units
and the assumption of $11 million of net debt (net of option proceeds). Pilot
shareholders will receive 0.1284 Crescent Point trust units for each Pilot
common share, which represents $2.89 per Pilot share, based on 22.7 million
outstanding Pilot common shares on a fully diluted basis and a 10 day weighted
average trading price of $22.48 per Crescent Point trust unit.

    BOARDS OF DIRECTORS RECOMMENDATIONS

    The Boards of Directors of both Crescent Point and Pilot have unanimously
approved the Plan. The Pilot Board has concluded that the Plan is in the best
interests of its shareholders, and has resolved to recommend that Pilot
shareholders vote their Pilot shares in favour of the Plan. The officers and
Board of Directors of Pilot beneficially owning approximately 33.5% of the
shares of Pilot have agreed to enter into Hard Lock-up Agreements and to vote
their Pilot securities in favour of the Plan.
    Tristone Capital Inc. acted as financial advisor to Crescent Point with
respect to the transaction.

    STRATEGIC RATIONALE

    Crescent Point continues to execute its business plan of creating
sustainable value added growth in reserves, production and cash flow through
management's integrated strategy of acquiring, exploiting and developing high
quality, long life, light oil and natural gas properties in western Canada.
    The Pilot Bakken consolidation acquisition will increase the Trust's
dominance in the Viewfield Bakken light oil resource play in southeast
Saskatchewan, adding flexibility and control in the play with expected
reductions to costs. Approximately 500 boe/d of Pilot's current production is
from the Viewfield Bakken resource play, increasing Crescent Point's Bakken
production to more than 10,500 boe/d. In addition, Pilot has 6.5 net sections
of undeveloped Bakken land on which Crescent Point has identified 22
(19.0 net) low risk development drilling locations. With the closing of the
Plan, Crescent Point will have 1,275 net low risk drilling locations in
inventory, including 1,022 (969 net) locations in the Viewfield Bakken
resource play. This represents more than 10 years of low risk drilling to
sustain the Trust's current production. To date, over 215 wells have been
drilled on the Trust's Bakken lands with a 100 percent success rate. Over the
past year, drilling and completion techniques used on these lands have
improved significantly and Crescent Point expects to see continued refinement
and improvement of these techniques over time.
    The remainder of Pilot's production includes approximately 320 boe/d of
non-Bakken production in southeast Saskatchewan, overlapping and contiguous
with Crescent Point production in southeast Saskatchewan, and approximately
180 boe/d from the Chauvin region of central Alberta.

    
    Key attributes of Pilot:

    -   Current production of 1,000 boe/d comprised of 95 percent high
        netback oil (38 degrees API) and 5 percent natural gas;
    -   19 net low risk Bakken drilling locations and 7 net low risk non-
        Bakken drilling locations;
    -   Significant undeveloped land holdings of 7,360 net acres, including
        6.5 net sections in the Bakken play;
    -   Tax pools estimated at approximately $22 million;
    -   Low operating costs of less than $10/boe; and
    -   Royalties of less than 15%.

    Reserves Summary:

    Crescent Point's internal estimate of Pilot's expected 2007 year end
independent reserves assignment is as follows:
    -   Approximately 3.7 million boe of proved plus probable and
        2.8 million boe of proved reserves (effective January 1, 2008 and
        based on internal engineering estimates utilizing NI 51-101 reserve
        definitions); and
    -   Reserve life index of 10.1 years proved plus probable and 7.7 years
        proved based on production of 1,000 boe/d.
    

    ACQUISITION METRICS

    The acquisition of Pilot is accretive to Crescent Point on a debt
adjusted production, reserves and cash flow per unit basis.
    Excluding Pilot's land and seismic value of $3 million, the value of the
transaction is $73 million, resulting in the following transaction metrics:

    
    1. Cash Flow Multiple:
        -  4.0 times based on 1,000 boe/d (US$75.00 WTI/bbl; $6.50/mcf AECO
           and $1.00 CDN$/US$ exchange rate)
    2. Production:
        -  $73,000 per producing boe based on 1,000 boe/d
    3. Reserves:
        -  $19.73 per proved plus probable boe
        -  $26.07 per proved boe
    

    REVISING UPWARDS PRELIMINARY 2008 GUIDANCE

    Crescent Point continues to execute its business plan of creating
sustainable value added growth in reserves, production and cash flow through
management's integrated strategy of acquiring, exploiting and developing high
quality, long life, light oil and natural gas properties in western Canada.
    Based on the expected January 2008 closing of the Plan, Crescent Point is
upwardly revising its preliminary 2008 guidance from 30,250 boe/d to
31,250 boe/d. The preliminary capital expenditures budget has been set at
approximately $150 million, which will be balanced more towards the
development and exploitation of the Bakken resource play, with upwards of 53
(50.0 net) Bakken wells planned. Crescent Point's Bakken consolidation
strategy provides the Trust with increased development drilling flexibility as
well as anticipated capital, operating and administrative cost savings in the
Trust's main operating area of southeast Saskatchewan. The Trust's drilling
inventory increases to 1,275 net lower risk development drilling locations.
    Crescent Point expects to finalize its 2008 capital expenditures budget
in December of this year. The Trust continues to evaluate the details of the
October 25, 2007 Alberta royalty announcement in light of higher than expected
crude oil prices and the Trust's significant drilling inventory in
Saskatchewan.
    Crescent Point continues to protect its cash flow stream with its
balanced hedge program through a combination of swaps, collars and put
structures. Crescent Point (pro forma with Pilot) currently has 53, 44, and 18
percent of its production hedged for 2008, 2009 and the first three quarters
of 2010, respectively.

    FORWARD LOOKING STATEMENTS

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

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

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

    
    CRESCENT POINT ENERGY TRUST                   PILOT ENERGY LTD.
    Scott Saxberg,                                Todd Lemieux,
    President and Chief Executive Officer         President & C.E.O
    





For further information:

For further information: ON CRESCENT POINT ENERGY TRUST PLEASE CONTACT:
Greg Tisdale, Chief Financial Officer or Trent Stangl, Manager Marketing and
Investor Relations, Telephone: (403) 693-0020, Toll free (US & Canada): (888)
693-0020, Fax: (403) 693-0070, website: www.crescentpointenergy.com; FOR
FURTHER INFORMATION ON PILOT ENERGY LTD. PLEASE CONTACT: Scott Ratushny,
Chairman, Telephone: (403) 514-8115 ext. 223, Fax: (403) 514-8120, website:
www.pilot-energy.com

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Crescent Point Energy Corp.

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