Crescent Point Energy Trust announced on Oct. 3 that it has entered in a purchase and sale agreement to acquire a large oil-in-place Alida pool in southeast Saskatchewan.

The pool produces about 475 boe/d of high quality, long-life light oil and natural gas. The property lies between Crescent Point's main producing fields in Manor and Ingoldsby.

The total cash consideration for the acquisition is about $25.5 million, effective Oct. 1. The deal is expected to close on or around Jan. 2, 2006.

Crescent Point Energy Trust's existing bank lines will fund the acquisition.

There are several factors that went into the considerations of purchasing the property.

The current production of the acquired property is 475 boe/d and comprises of 92 per cent high net back, light oil and eight per cent natural gas.

There is a drilling upside with more than five (4.2 net) development infill drilling locations identified on the acquired property.

More than 80 million barrels of oil will be available with large original oil in place Alida pools on the property.

The size of the area is 960 gross acres and 704 net acres of undeveloped land.

Crescent Point Energy Trust also announced on Oct. 3 that they have bought out Bulldog Energy Inc. through a plan of arrangement.

Bulldog Energy Inc. was producing approximately 2,125 boe/d of focused high netback, light oil and natural gas.

Once the plan has gone through, Crescent Point will increase its monthly distribution from $0.19 per unit to $0.20.