Calgary-based Crescent Point said Monday it will spend close to C$924 million in three transactions to build a substantial position in southern Saskatchewan. With the three acquisitions, the company lifted its 2009 year-end production guidance by 16%.

In the largest transaction, Crescent Point agreed to acquire privately held Wave Energy Ltd. for C$665.3 million. Wave is said to be the largest leaseholder in the Lower Shaunavon Formation in southwest Saskatchewan with a leasehold of more than 150 net sections of land, including 132 net sections that are undeveloped.

Wave Energy has an estimated 8.7 million boe of proved reserves and 17.6 million boe of proved plus probable (3P) reserves, according to Crescent Point. Wave Energy’s 3P reserve life index was estimated at 16.1 years, including 7.9 years proved reserves.

Once the merger is completed, Crescent Point said it will control 259 sections in the Lower Shaunavon play, including 44 sections net that it manages on behalf of Shelter Bay Energy Inc. The acquisition also will give Crescent Point about 65 net sections in the emerging Dodsland Viking play in west-central Saskatchewan and more than 500 sections of undeveloped land in Montana. The merger is scheduled to close by Oct. 30.

Crescent Point also closed one agreement and entered into a second worth a total of C$258.2 million cash to acquire property in southeast and southwest Saskatchewan from undisclosed sellers. The assets now produce nearly 3,750 boe/d, according to the producer.

With the new assets, Crescent Point will increase its 2009 capital spending plans by a third to C$325 million, which is C$100 million higher than originally forecast. About C$42 million of the new funds are to be directed toward incremental drilling, with the remaining money to be spent for infrastructure, land and seismic.

The company now expects to exit 2009 with a production rate of at 51,500 boe/d, which is up from an earlier forecast of 44,500 boe/d.

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