2009-09-24-2009-08-24

Transaction Type
Announce Date
Post Date
Estimated Price
924MM
Description

To buy SK assets, including Bakken, gaining 3,750 BOE/d, 7.3 MMBOE proved.

Crescent Point Energy Corp., Calgary, (Toronto: CPG) plans to buy privately owned, Calgary-based Wave Energy Ltd. in a deal valued at C$665.3 million and will also acquire southern Saskatchewan assets from undisclosed sellers into two deals for C$258.5 million for a total C$923.8 million (US$860.5 million) Production for all the acquisitions is valued at $89,451 per producing barrel equivalent, proved reserves at C$37.74 per barrel equivalent and $21.04 per proved and probable barrel equivalent, according to Crescent Point. Total production from the acquisitions is 6,750 barrels equivalent per day. The assets from the undisclosed buyers include 178 net sections of undeveloped land, including 14 in the Bakken light oil resource play; 51 net low risk drilling locations, including 23 in the Bakken. Production is approximately 3,750 barrels of oil equivalent per day, comprised of approximately 2,750 barrels equivalent per day in southeastern Saskatchewan (with 450 barrels per day from the Bakken) and 1,000 barrels per day in southwestern Saskatchewan. The southeastern Saskatchewan assets are largely adjacent to and contiguous with existing Crescent Point assets in southeastern Saskatchewan, including in the Bakken play. Proved reserves are 7.3 million barrels equivalent and proved and probable reserves are approximately 11.1 million barrels equivalent. Wave Energy has the largest land position in the Lower Shaunavon resource play in Saskatchewan. The acquisition includes 150 net sections of Lower Shaunavon land, including 132 net sections undeveloped, 65 net sections in the Viking light oil play (63 net sections undeveloped) and more than 500 sections of undeveloped land in Montana. Crescent Point plans to issue 0.21 Crescent Point share per Wave share and expects to assume approximately C$57.9 million of net debt. Based on Crescent Points' five-day weighted average trading price of $34.68 prior to the offer, the company's aggregate consideration for Wave is approximately C$665.3 million. Production is approximately 3,000 barrels per day (87% oil). Proved reserves as of year-end 2008 were 8.7 million barrels equivalent and proved and probable reserves of 17.6 million barrels equivalent. The Wave purchase is expected to close in late October. CIBC and RBC Capital Markets are financial advisors to Crescent Point regarding the Wave acquisition. FirstEnergy Capital Corp. is financial advisor to Wave. Peters & Co. Ltd. and Scotia Waterous Inc. are financial advisors to Crescent Point regarding the additional Saskatchewan acquisitions.