Crescent Point snaps up TriAxon

Crescent Point Energy has announced the acquisition of privately-owned TriAxon Resources for C$249 million.  Crescent Point is one of a number of companies eager to secure dominant positions in Saskatchewan through a series of acquisitions.  The Calgary, Alberta-based firm is a conventional oil and gas producer with light and medium oil and natural gas reserves in western Canada. TriAxon, also based in Calgary, is currently producing more than 1,400 barrels of oil equivalent a day (boepd), most of which is generated in Alberta. TriAxonÔÇÖs assets include over 148 net sections of undeveloped land in the Viking light oil resource play in the Plato area of west-central Saskatchewan. The deal will also give Crescent assets in the Pembina Cardium play in Alberta, which currently produces around 560 boepd.  Crescent also gains operation of the Flat Lake Bakken play, in which it already has a working interest. The Bakken shale region, which mostly lies under Montana, North Dakota and Saskatchewan, has been attracting increasing interest from exploration companies, as the light oil play is estimated to hold up to five billion barrels of original oil. ÔÇ£Over the past few years, TriAxon has aggressively pursued high quality plays with significant recovery factor upside,ÔÇØ said Scott Saxberg, president and CEO of Crescent Point, commenting on the deal. ÔÇ£They have established leading positions in the Viking and Flat Lake Bakken plays in Saskatchewan. These assets complement Crescent PointÔÇÖs existing Bakken assets very well and provide us with the opportunity to lever our tight oil expertise into a large land base in the emerging Viking tight oil play.ÔÇØ ÔÇ£Crescent Point shares our strategy of balanced growth through the combination of technology and large resource in place assets,ÔÇØ added Jeff Saponja, president and CEO of TriAxon.  ÔÇ£We have exposed our shareholders to a significant amount of long term upside with the asset base we have built.  ÔÇ£We are excited to roll these assets in alongside Crescent PointÔÇÖs assets and to participate collectively in Crescent PointÔÇÖs long term growth.ÔÇØ This is the third major acquisition made by Crescent in southern Saskatchewan over the past six months. It has sold $805 million of equity to fund the purchases. The deal is subject to approval by TriAxon shareholders but is expected to close by December 15. *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *