Crescent Point Energy Trust announced Wednesday that they have entered into an agreement in which they will purchase Innova Exploration Ltd.

Crescent Point will make an offer to acquire all of the issued and outstanding shares of Innova for a cash consideration of $360.1 million. Crescent Point will also assume Innova's net debt of approximately $39.9 million, for a total transaction value of approximately $400 million.

Upon completion of the Innova acquisition, Crescent Point will acquire approximately 4,300 barrels of oil equivalent per day (boe/d) of high netback light oil and natural gas production, 65 per cent of which is in the Viewfield Bakken resource play.

Approximately 2,800 boe/d of Innova's production is from the Viewfield Bakken oilfield, making Innova the second largest producer in the play next to Crescent Point.

Innova's production and land base consolidate the majority of Crescent Point's core Viewfield Bakken resource play in southeast Saskatchewan to a 100 per cent working interest.

As more than 90 per cent of Innova's Bakken production is operated by Crescent Point, the acquisition will increase the majority of the company's Bakken working interest to 100 per cent. The Innova acquisition increases Crescent Point's Bakken production to more than 800 boe/d.

Currently, Crescent Point is producing in excess of 27,500 boe/d, mainly due to success in the Bakken play.

The Innova acquisition will also increase Crescent Point's Bakken land position, adding more than 97 net sections of undeveloped land and 380 net low risk development locations to the Crescent Point's development drilling inventory.

To date, over 200 wells have been drilled on Crescent Point's Bakken lands with a 100 per cent success rate. All-in costs per well are estimated between $1.6 million and $1.8 million, with average initial production and proved plus probable reserves estimates of 175 boe/d and 116,000 boe, respectively.

Crescent Point is upwardly revising its 2007 fourth quarter forecast from 26,250 boe/d to 30,000 boe/d based on the anticipated closing of the Innova acquisition in late October 2007.

With the closing of the acquisition, Crescent Point's preliminary 2008 capital expenditures budget will be set at approximately $150 million. The budget will be balanced more towards the development and exploration of the Bakken resource play, with upwards of 53 (50 net) Bakken wells planned.