* Paying C$1.52 per share for rest of Shelter Bay
* Boosts production estimate
* To raise C$431 mln in bought deal
By Scott Haggett
CALGARY, Alberta, May 12 Crescent Point Energy
Corp (CPG.TO) said on Wednesday it will pay C$1.1 billion
($1.08 billion), including debt, to buy the 79 percent of
private oil producer Shelter Bay Energy it doesn't own to boost
its holdings in the prolific Bakken oil field in Saskatchewan.
In the all-stock deal, Crescent Point is offering a
of its own shares, worth C$1.52, for each Shelter Bay share.
The price includes C$121 million of debt.
Calgary-based Crescent Point said the deal will help cement
the company's status as the dominant producer in the
Saskatchewan portion of the Bakken field, which also lies under
parts of Montana and North Dakota.
The U.S. Geological Survey estimates Bakken could contain
as much as 5.5 billion barrels of oil.
The acquisition, expected to close on July 2, brings 7,400
barrels of oil equivalent per day (boed) in new production to
Crescent Point, C$900 million worth of tax pools used to
shelter future income, and 38.1 million barrels of reserves.
Crescent Point created Shelter Bay in 2008, when it was an
energy trust, to escape federal government restrictions on the
growth of trusts, a tax-favored corporate structure that the
government is phasing out next year.
The company had a two-year option to acquire Shelter Bay
that was slated to begin in April 2011. However since it
converted to a corporation last year, well ahead of the
government deadline, it decided to move earlier on the
The company said the acquisition will boost 2010 production
to an average 61,000 boed, 6.6 percent higher than its previous
It also expects to boost its capital spending by C$125
million to C$750 million.
To pay for the increased capital spending program and to
cutdebt, Crescent Point has arranged to sell 9.15 million
shares at C$41 each to a group of underwriters co-led by BMO
Capital Markets, CIBC, and Scotia Capital Inc.
The underwriters will have an option to acquire a further
1.37 million shares, which would bring the total value of the
deal to C$431 million.
Crescent Point shares fell 2 Canadian cents to C$41.97 on
Wednesday on the Toronto Stock Exchange.
(Reporting by Scott Haggett; editing by Peter Galloway)