Crescent Point Energy Trust (TSX: CPG.UN) and Shelter Bay Energy Inc. are pleased to announce the closing of a $300 million private placement financing for Shelter Bay.
Shelter Bay raised total proceeds of $300 million through a private placement to existing Shelter Bay shareholders at a price of $1.50 per share. Crescent Point's share of the private placement was $78.7 million which was financed through the Trust's existing credit facilities. With the closing of the private placement, Crescent Point's aggregate investment in Shelter Bay is approximately $200 million which equates to a 21 percent interest in Shelter Bay.
Through the Trust's ownership in Shelter Bay, Crescent Point remains exposed to significant value growth opportunities in Shelter Bay. Under the terms of the Shelter Bay Unanimous Shareholders' Agreement, Crescent Point has certain rights to acquire assets from Shelter Bay before April 1, 2013.
Shelter Bay is currently the third largest producer in the southeast Saskatchewan Bakken light oil resource play and has aggressively grown its land position in the play to more than 150 net operated sections. Shelter Bay management and technical staff are provided by Crescent Point via a technical services agreement.
With the closing of the $300 million private placement and Shelter Bay's $100 million available bank line, Shelter Bay is well positioned to generate strong growth in production, cash flow, reserves and net asset value for the balance of 2008 and beyond. -- www.cnxmarketlink.com
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