Crescent Point Energy Trust said Monday that it has executed agreements to acquire all of the issued and outstanding shares of a private Alberta-based oil and gas company for a total consideration of C$81 million, which includes the assumption of C$4 million of net debt.

The company to be acquired operates mainly in northeast BC and southern and central Alberta. Its currently operates all of its assets with a working interest of greater than 80%, comprised of 85% natural gas, and 15% light oil. Crescent — a conventional oil and gas income trust — noted that the assets will bring over 30 low risk infill development locations with more than 1,500 boe/d of risked production adds in inventory. Current production from the assets are approximately 1,750 boe/d, comprised of 9 MMcf/d of natural gas and 250 b/d of light oil.

As of January 1, 2004, Crescent said it expects the properties to have approximately 6.4 million boe of established and 5.6 million boe of proven reserves, with the potential to double proven reserves over time, with the main northeast BC property having gas in place of over 40 Bcf and low recovery to date.

Crescent said the agreement has the unanimous support of the board of directors of both Crescent as well as the private company. It is expected to close on or about Jan. 6, 2004.

“Crescent Point management believes this strategic high quality, natural gas and light oil acquisition complements and further balances the company’s existing large oil and gas in place assets,” the trust said. ‘The acquisition also provides additional drilling inventory for natural gas with significant production and reserves growth.”

Upon closing, Crescent added that it will be revising upward the company’s 2004 average daily production estimate from 7,000 boe/d to 8,750 boe/d, which will be comprised of 66% high quality water flooded light oil and 33% long life natural gas.

In conjunction with the acquisition, Crescent also announced that it has entered into an agreement, on a bought deal basis, with a syndicate of underwriters led by Scotia Capital Inc., under which Crescent will offer 4.75 million Trust units at C$12.75 per Trust unit to raise gross proceeds of approximately C$60.6 million.

Crescent said it also expects the financing to be complete on or about Jan. 6, subject to customary regulatory approvals. The company said it will use the net proceeds of the financing to fund the purchase of the private company, reduce Crescent Point’s outstanding debt and further enhance the Trust’s business strategy “of acquiring long life high quality reserves.”

The trust has assets strategically focused in five core properties comprised of high quality, long life, operated, light oil and natural gas reserves in western Canada.

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