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Calgary-based Crescent Point Energy Corp. (TSX:CPG) said Wednesday it has acquired Ryland Oil Corporation (TSXV:RYD), which has most of its assets in southeastern Saskatchewan and North Dakota.

Ryland shareholders will get about 46 cents per share — about $121.8 million, including the assumption of $26.4 million in debt — which Crescent Point said is a premium of 31 per cent.

Crescent Point said it has drilled six successful wells in the Flat Lake area of southeastern Saskatchewan and expects to drill up to eight more by the end of the year.

Junior oil producer Ryland is Crescent Point's working interest partner in the Flat Lake Bakken play and controls more than 475 net sections of land, the majority of which is in southeast Saskatchewan.

"We see great potential in the Flat Lake Bakken pool, which is an extension of the Bakken play in the U.S.," Scott Saxberg, president and CEO of Crescent Point, said in a news release.

"This acquisition of our only partner in the play allows us to fully manage the development of the area and adds a U.S. land base of over 50 net sections in the Bakken."

Shares in Crescent Point were down 30 cents at $38.33 in morning trading on the TSX. Ryland shares were halted on the TSX Venture Exchange and last traded at 37 cents.

 

Source: CB Online

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