Crescent Point Energy has chased the prolific Bakken light oil play across the border from Saskatchewan into southern Alberta, it revealed Monday.

The Calgary-based company reported it has compiled an undeveloped acreage of more than 400,000 hectares south of Lethbridge that it believes is prospective for multi-zone light oil, including the unconventional Bakken and Three Forks zones.

President and chief executive Scott Saxberg said the play is "highly exploration oriented" but the company is risking a relatively small amount of capital.

"We have the potential to more than double our company, if it hits," he said.

"The area is so massive and if it truly is similar to the Saskatchewan Bakken, then it's pretty significant. Those are the shots you want to take, at the size of our company, if you want to grow."

The land, identified through a basin map drawn from the U.S. side of the border, was acquired through Crown land sales and freehold leasing, but mainly through the acquisition of an unnamed private company.

The latter, with conventional production of 900 barrels of oil equivalent per day, cost $95.6 million, $68.8 million in cash and assumed debt, and the rest in shares.

Crescent Point said it will increase 2010 capital spending by $175 million to total $925 million, with 80 per cent of the increase allocated to the land acquisitions and the remainder directed toward increased drilling in Alberta and Saskatchewan.

The company also announced a bought deal offering of 10 million Crescent Point shares to raise $375 million. The financing is being co-led by CIBC and BMO Capital Markets.

Crescent Point expects to exit 2010 with production of 71,000 boe/d, most from the Saskatchewan Bakken and Lower Shaunavon formations.

Source: Calgary Herald.com

DiscoverWeyburn.com is Weyburn's only source for community news and information such as weather and classifieds.