/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES./
CALGARY, Oct. 2 /CNW/ - Crescent Point Energy Trust ("Crescent Point" or
the "Trust") has completed an evaluation of the recommendations contained in
the Alberta Royalty Review Panel Report (the "Report"). The Trust has
concluded that the Report's analysis is flawed and that its recommendations
will negatively impact future oil and gas investment in the Province of
"Because of the uncertainty created by the Report, Crescent Point has
decided to direct all of its $150 million 2008 preliminary capital development
budget to the Province of Saskatchewan," says Scott Saxberg, President and CEO
of Crescent Point. "Increased royalty rates in Alberta would decrease the
rates of return on projects in the province, making investments in other
jurisdictions more attractive."
With more than 1,000 low risk development drilling locations in
Saskatchewan, Crescent Point is well positioned to execute its business plan
of creating sustainable value added growth in reserves, production and cash
flow on a per unit basis.
According to Mr. Saxberg, the Trust welcomes Premier Stelmach's decision
to consult with industry before making decisions on the Report's
recommendations. "We believe that the Report does not consider all of the
factors, including costs and risk, that make up the full cycle economics of
drilling for conventional oil and natural gas in the maturing Western Canadian
Sedimentary Basin. The recommendations of the Report, if implemented as
proposed, would make the full cycle economics of exploring and developing
conventional oil and natural gas in Alberta unattractive in many cases," he
Crescent Point believes that implementing the Report's recommendations
would have significant negative implications for the oil and gas industry and
for economic growth in the Province of Alberta. The Trust is actively working
with the Canadian Association of Petroleum Producers to provide feedback to
the Province on this important issue.
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
President and Chief Executive Officer
Trust units of Crescent Point are traded on the Toronto Stock Exchange
under the symbol CPG.UN.
For further information:
For further information: ON CRESCENT POINT ENERGY TRUST PLEASE CONTACT:
Crescent Point Energy Trust, c/o Crescent Point Resources Inc., Trent Stangl,
Manager Marketing and Investor Relations, Greg Tisdale, Chief Financial
Officer, Telephone: (403) 693-0020, Telecopier: (403) 693-0070, Toll-free
(Canada & United States) 1-888-693-0020.