/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES/
CALGARY, July 23 /CNW/ - Crescent Point Energy Trust ("Crescent Point" or
the "Trust") (TSX: CPG.UN) announces 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. 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, but in any case the
amount is not considered material to Crescent Point's operations and overall
Crescent Point expects 2008 to be a record year with production forecast
to average 36,250 boe/d and exit over 37,500 boe/d. The Trust continues to
expect record cash flow for 2008 and does not expect the potential exposure to
SemCanada to materially impact its cash flow expectations. The Trust will not
be revising its cash flow guidance for the year.
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
President and Chief Executive Officer
For further information:
For further information: ON CRESCENT POINT ENERGY TRUST PLEASE CONTACT:
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: