Crescent Point Energy Trust announced that they have agreed to invest in Shelter Bay Energy Inc., a private oil company in the Bakken light oil formation in southeast Saskatchewan.

Crescent Point Energy also announced that they have entered into an agreement to acquire Landex Petroleum Corp., a private oil and gas company, for a total consideration of approximately $310 million, including the assumption of $16 million of net debt.

It is expected that, prior to the closing of Landex, the agreement will be amended and restated such that Shelter Bay will agree to complete the acquisition of Landex.

Under the expected amended agreement, Crescent Point would acquire the non-Bakken assets of Landex for $80 million, and Shelter Bay would acquire the Bakken assets of Landex, which are producing approximately 2,500 barrels of oil equivalent per day, for $230 million, for a combined consideration of $310 million.

Crescent Point believes the Viewfield Bakken play is the second largest conventional oil play ever discovered in western Canada, containing an estimated 3 billion barrels of original oil in place. The Bakken oil reserves are high quality, consisting of light sweet oil and liquids rich associated gas.

The company is currently producing more than 12,000 boe/d. Crescent Point also has 360 net sections of undeveloped Bakken land and more than 1,000 net low risk Bakken drilling locations representing over 10 years of inventory.

As part of its commitment to Shelter Bay, Crescent Point will farm out 22 net sections of its inventory of 360 sections to Shelter Bay. Under the terms of the farmout agreement, Crescent Point will retain interests in up to 50 per cent of the lands and production. Shelter Bay is expected to drill up to 40 gross wells on these farm-in lands in 2008 and a further 40 gross locations in 2009.

Under the amended agreement, Shelter Bay is expected to pay approximately $230 million to acquire the Bakken assets of Landex. Landex is producing approximately 2,500 boe/d of light sweet, high netback production in the heart of the southeast Saskatchewan Bakken light oil resource play.

These assets are adjacent to and contiguous with Crescent Point's Bakken assets and with Shelter Bay's farm-in lands from Crescent Point. Landex's Bakken assets include 21 net operated sections of land in the play and 116 net low risk drilling locations.

Subject to the expected mid-March closing of the amended agreement, Crescent Point is upwardly revising its 2008 production forecast from 32,750 boe/d to 34,500 boe/d, based on production additions of 1,200 boe/d for the non-Bakken Landex assets and increased production related to the Shelter Bay farm-in.

Currently, Crescent Point is producing in excess of 33,500 boe/d mainly due to drilling and fracture stimulation success in the Bakken play.