Crescent Point boosts output with C$557 million oil deals
CALGARY, Alberta (Reuters) - Crescent Point Energy Corp (CPG.TO: Quote), Canada's No. 5 independent oil producer, said on Thursday it will pay C$427 million ($427 million) to buy properties from PetroBakken Energy Ltd PBN.TO so it can boost production in the prolific Bakken oil field in southern Saskatchewan.
The company also said it has closed an agreement to buy oil producing properties in southern Manitoba for C$130 million).
Crescent Point said the Saskatchewan deal will add 2,900 barrels of oil production per day, 10.5 million barrels of proved and probable reserves, and around 16,000 acres of explorationlands in the core of the Saskatchewan side of the Bakken field, which extends into North Dakota and Montana.
The Manitoba acquisition adds 940 bpd of new production and 5.6 million barrels of reserves.
The company said the acquisitions will boost its targeted production for 2012 to 86,000 barrels of oil equivalent a day, up from its previous estimate of 83,500 boepd. It said it will now finish the year producing 93,000 boepd, up from an earlier forecast of 90,000 boepd.
To pay for the purchase, Crescent Point said it will sell 11.6 million shares, priced at C$45.25 each, to a group of underwriters led by BMO Capital Markets, CIBC and Scotia Capital to raise gross proceeds of C$525 million.
The underwriters have the option to buy a further 1.7 million shares if demand warrants, boosting the proceeds to C$604 million.
Crescent Point shares rose 42 Canadian cents to C$46.45 on the Toronto Stock Exchange on Thursday.
(Reporting by Scott Haggett; Editing by Peter Galloway)
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