Crescent Point to buy Wild Stream for $770-million

TORONTO— ReutersPublished Wednesday, Jan. 25, 2012 8:20AM EST

Crescent Point Energy (CPG-T46.64 -0.06-0 .13%) will buy Wild Stream Exploration (WSX-X 9.800.353 .70%) in a deal valued at $770-million to raise its output and add assets near its existing acreage in the oil-rich Shaunavon and Battrum/Cantuar areas of southwest Saskatchewan.

The total oil in place in the Shaunavon play is estimated to be 471 million cubic meter, of which only 57 per cent has been discovered, according to an independent federal agency report.

Wild Stream Exploration, whose operations are mainly in Shaunavon and Dodsland in southwest Saskatchewan, is a 90 per cent oil-weighted company with production of about 6,400 barrels of oil equivalent per day.

Crescent Point raised its 2012 average daily production forecast by about 4 per cent to 83,500 boe/d following the deal.

The company said it expects to buy about 5,400 barrels of oil equivalent per day of Wild Stream’s production, 91 per cent of which shares a border with its own assets in the Shaunavon and Battrum/Cantuar areas of southwest Saskatchewan.

The balance of Wild Stream’s production will be transferred into a new junior exploration company in which Crescent Point will hold 2.65 million shares.

The acquisition is expected to add to its reserves on a per share basis, production and cash flow, said Crescent Point, which bought more than 85 net sections of land in the Beaverhill Lake light oil play in Alberta.

Under the deal, Wild Stream said each of its share will be exchanged for 0.17 shares of Crescent Point, 1.0 share of the new company and 0.2 of a common share purchase warrant.

The new company will be a publicly listed company that will be led by Wild Stream’s chief executive officer Neil Roszell and four other members of the company’s current management team, Wild Stream said in a separate statement.

The deal is expected to close on or before March 15, Crescent Point said.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/crescent-point-to-buy-wild-stream-for-770-million/article2314227/

Cheers; Scott