Crescent Point Energy Trust announces accelerated Bakken capital budget, upward revision to guidance and a 15 percent increase in distributions


    CALGARY, June 16 /CNW/ - Crescent Point Energy Trust ("Crescent Point" or
the "Trust") (TSX: CPG.UN) is pleased to announce a $200 million increase to
its 2008 capital spending plans, increasing total capital expenditures to
$425 million, a 5 percent upward revision to 2008 production guidance, and a
15 percent increase in the Trust's distribution. Increases in capital
spending, production, cash flow and distribution are due to significant growth
in Crescent Point's southeast Saskatchewan Bakken resource play, continued
better than expected drilling and production results in its core areas, and
higher than anticipated commodity prices.


    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.
    To capitalize on the increasing size and productivity of the Bakken
resource play, Crescent Point is upwardly revising its 2008 capital
expenditures budget by 89 percent from $225 million to $425 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.


    A large portion of Crescent Point's 2008 budget will be directed towards
facilities and infrastructure, as the Trust positions itself for further
growth in the Bakken resource play in the coming years. The Trust's budget for
land, facilities and seismic has been increased to $170 million from
$45 million. The majority will be spent in the Bakken resource play, including
the acquisition of additional undeveloped Bakken land, 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.


    Crescent Point is also pleased to announce 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.
    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
accelerated Bakken drilling program. The Trust's first quarter 2008 netback
increased to $52.68 per boe due primarily to higher benchmark prices, as well
as improved corporate oil differentials, lower operating costs and lower
royalties. Benchmark West Texas Intermediate prices averaged Cdn$97.98 per bbl
in the first quarter, and the Trust anticipates them to average
Cdn$110.50 per bbl for the year.
    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. Crescent Point's projected 2008 net debt to 12 month cash flow is
1.0 times. In addition, the Trust will initiate a mark to market
crystallization and hedge reset program that will provide further cash flow
and distribution stability over the coming years.


    Crescent Point's balanced 3 1/2 year risk management program provides
stability and sustainability to its cash flows and distributions. The Trust is
pleased to announce a mark to market crystallization and hedge reset program
that will provide further certainty to 2009 and 2010 cash flows and
    In light of higher than anticipated oil prices and cash flow in 2008,
Crescent Point will crystallize a portion of the forward mark to market loss
on 2009 and 2010 fixed price swaps and will reset these hedges at current
forward market prices, which are significantly higher than the Trust's current
average hedge price. The hedges are expected to be reset using a combination
of swaps, costless collars and put options. 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 due to higher reset hedge prices, while providing a mechanism to reduce
2008 taxable income due to record high cash flow.
    The impact of resetting 2009 and 2010 hedges is expected to increase the
corporate average hedge price by 6 percent and 7 percent, from $91.14 per boe
to $96.11 per boe and from $91.27 per boe to $97.39 per boe, respectively,
which will further strengthen the sustainability of the Trust's increased
distribution in 2009 and 2010. Crescent Point expects to realize a hedging
loss of approximately $34 million in the second quarter of 2008 as a result of
these transactions.
    In total as of June 13, 2008, the Trust had hedged 57 percent,
54 percent, 43 percent and 24 percent of production, net of royalty interest,
for the balance of 2008, 2009, 2010 and the first three quarters of 2011,


    Crescent Point is upwardly revising its 2008 average production forecast
by 5 percent to 36,250 boe/d from 34,500 boe/d. The Trust continues to have
drilling and fracture stimulation success in the Bakken resource play, which
has resulted in better than expected corporate production. Crescent Point now
expects to exit 2008 in excess of 37,500 boe/d.
    Cash flow expectations for 2008 have been revised upwards to $621 million
($4.98 per unit - diluted) with a 52 percent payout ratio. Included in this
cash flow guidance is an estimated $49 million hedging loss related to the
Trust's planned mark to market crystallization program. These hedges will be
reset at current market prices which will increase 2009 and 2010 cash flows
through higher hedge prices and provide support for the newly increased
$0.23 per unit distributions. Crescent Point's balance sheet remains strong,
with budgeted 2008 net debt to cash flow of 1.0 times.

    The Trust's projections for 2008 are as follows:

                                                          Previous   Revised
                                                          Guidance  Guidance
      Oil and NGL (bbls/d)                                  30,125    31,750
      Natural gas (mcf/d)                                   26,250    27,000
    Total (boe/d)                                           34,500    36,250
    Cash flow ($000)                                       588,000   621,000
    Cash flow per unit - diluted ($)                          4.71      4.98
    Cash distributions per unit ($)                           2.40      2.61
    Payout ratio - per unit - diluted (%)                       51        52
    Capital expenditures ($000)(1)                         225,000   425,000
    Wells drilled, net                                         106       140
      Crude oil - WTI (US$/bbl)                             102.50    110.50
      Crude oil - WTI (Cdn$/bbl)                            102.50    110.50
      Natural gas - Corporate (Cdn$/mcf)                      8.50      9.50
      Exchange rate (US$/Cdn$)                                1.00      1.00

    (1) The projection of capital expenditures excludes acquisitions, which
        are separately considered and evaluated.


    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.


    Scott Saxberg,
    President and Chief Executive Officer

For further information:

Greg Tisdale, Chief Financial Officer or Trent Stangl, Vice President
Marketing and Investor Relations, Telephone: (403) 693-0020, Toll free (US &
Canada): (888) 693-0020, Fax: (403) 693-0070, website:

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Crescent Point Energy Corp.

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