Point Energy has chased the prolific Bakken light oil play across the
border from Saskatchewan into southern Alberta, it revealed Monday.
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.
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."
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.
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
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.
Point expects to exit 2010 with production of 71,000 boe/d, most from
the Saskatchewan Bakken and Lower Shaunavon formations.