August 24, 2009 / 1:53 PM / in 8 years

UPDATE 2-Crescent Point to buy Wave Energy for C$665 mln

* To acquire Wave Energy for about C$665 mln

* To acquire other assets for about C$259 mln

* To raise C$200 mln through bought deal financing

* Sees production of 51,500 barrels per day by Dec 2009

* Sees 2009 cash flows of about C$645 million

(Adds details on deals, financing)

TORONTO, Aug 24 (Reuters) - Crescent Point Energy Corp (CPG.TO) said on Monday it agreed to buy Wave Energy Ltd, a closely held oil and gas producer, for about C$665 million ($622 million), as part of its expansion in the Canadian province of Saskatchewan.

Under the terms of the deal, Wave shareholders will receive 0.21 of a Crescent Point share for each Wave share, or about C$7.28 per Wave share based on a five-day weighted average trading price of C$34.68 per Crescent Point share.

The Calgary, Alberta-based also announced a separate deal to acquire producing assets in southeast and southwest Saskatchewan for about C$259 million in cash.

Crescent Point has been actively expanding its portfolio, having recently closed its acquisitions of Gibraltar Exploration Ltd and Villanova Energy Corp.

The company also raised its year-end production by 16 percent to 51,500 barrels of oil equivalent per day. It also raised its 2009 capital expenditure budget by C$100 million to C$325 million.

The company said its balance sheet remains strong, with more than C$300 million of unutilized capacity projected on its bank lines.

CIBC and RBC Capital Markets acted as financial advisers to Crescent Point on the Wave deal, while FirstEnergy Capital Corp acted as financial adviser to Wave.

Peters & Co Ltd and Scotia Waterous Inc acted as its financial advisers on the other asset acquisitions.

BOUGHT DEAL

Crescent Point also said it planned to sell discount-priced shares to a group of underwriters in a bid to raise capital for to fund a portion of the asset acquisitions.

Crescent Point is selling 5.8 million shares at C$34.50 per share -- a 3.9 percent discount to its closing price on the Toronto Stock Exchange on Friday.

The offering is expected on or about Sept. 15. It would raise gross proceeds of about C$200 million. Scotia Capital Inc, BMO Capital Markets and CIBC are the joint lead underwriters of the bought deal.

Crescent Point has also granted the underwriters an over-allotment option to purchase, on the same terms, up to an additional 870,000 shares. The maximum gross proceeds raised under this offering would amount to about C$230 million should this option be exercised in full.

Crescent Point shares 1.8 percent to C$35.29 in early trade on the Toronto Stock Exchange. ($1=$1.07 Canadian) (Reporting by Euan Rocha; Editing by Frank McGurty)

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