Crescent Point Finishes Wild Stream Purchase; Raging River Spins Off From Remaining Assets
Bought majority of company assets including more than 200 net sections of land in Shaunavon resource play, 15 net sections in Beaverhill Lake light oil resource play in the Swan Hills area & 37 net sections in Battrum/Cantuar area of SW SK, gaining 5,400 BOE/d, 17.6 MMBOE proved.
Crescent Point Energy Corp., Calgary, (Toronto: CPG) has closed its purchase of Wild Stream Exploration Inc., Calgary, (Toronto Venture: WSX) in a deal valued at approximately C$610 million.
The deal values production at C$109,800 per producing barrel equivalent, proved reserves at C$33.69 per barrel equivalent and proved and probable reserves at C$20.66 per barrel equivalent, according to Wild Stream.
Along with the purchase, Wild Stream concurrently spun off a portion of its assets to a new entity named Raging River Exploration Inc. (Toronto Venture: RRX) in an additional deal valued at C$160 million, bringing Wild Stream’s total proceeds to C$770 million.
Crescent Point issued to Wild Stream shareholders 0.17 Crescent Point share, one Raging River share and 0.2 Raging River warrant, each whole warrant entitling the holder to purchase one Raging River Share at an exercise price of $1.61 per share until April 16.
Raging River is staffed by Wild Stream employees, including Neil Roszell as president and chief executive and Jerry Saphieha as vice president, finance, and chief financial officer.
The assets in the Crescent Point deal include more than 200 net sections of land in the Shaunavon resource play, 15 net sections of land in the emerging Beaverhill Lake light oil resource play in the Swan Hills area and 37 net sections of land in the Battrum/Cantuar area of southwestern Saskatchewan.
Production is 5,400 barrels of oil equivalent per day (90% oil). Proved reserves are 17.6 million barrels equivalent and proved and probable reserves are 28.7 million barrels equivalent.
Crescent Point plans to use the acquisition to further solidify its position as the largest player in the Shaunavon resource play in southwestern Saskatchewan, in terms of production and land. Pro forma, Crescent Point expects to have production of more than 15,000 barrels equivalent per day and more than 800 net sections of land in the Shaunavon resource play. Crescent Point expects to drill 91 net wells in the Shaunavon resource play in 2012.
Wild Stream's assets will also complement Crescent Point's existing position in Alberta's emerging Beaverhill Lake light oil resource play in the Swan Hills area.
The Raging River assets include an average 90% working interest in approximately 57,000 net acres of undeveloped land. The properties feature approximately 300 net drilling locations.
Production is 1,000 barrels equivalent per day. Proved and probable reserves are 5.4 million stock barrels of oil (100% oil).
BMO Capital Markets was financial advisor and FirstEnergy Capital Corp. was strategic advisor to Crescent Point. National Bank Financial Inc. and Peters & Co. Ltd. were financial advisors to Wild Stream.