Crescent Point Turns Sights On Reliable Energy

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
CA$99.1MM
Description

To purchase company with 90,000 net acres primarily in Kirkella area on SK/MB border targeting Bakken oil play, gaining 1,100 BO/d.

On the heels of its recent purchase of Wild Stream Exploration Inc., Crescent Point Energy Corp., Calgary, (Toronto: CPG) has launched a bid to acquire Reliable Energy Ltd., Calgary, (Toronto Venture: REL) for C$99.1 million in stock and assumed debt.

Crescent Point will issue 0.00794 common share per Reliable share, with Reliable shareholders receiving an aggregate value of C$0.362 per common share of Reliable based on a five-day weighted average trading price per Crescent Point share of C$45.61 which represents a premium of 19% to the closing price of Reliable shares on March 14.

Reliable Energy's activities are primarily focused in the Kirkella area situated on the Saskatchewan/Manitoba border where it holds more than 90,000 net acres of undeveloped lands. Kirkella is a Bakken oil rich prospect area that possesses high operating margins and multiple formation potential. The company has an inventory of approximately 450 net horizontal drilling locations identified in the Kirkella region. Reliable's second focus area is in Blaine County, Montana, where the company holds almost 100,000 net undeveloped acres on an emerging Bakken oil play.

Net production as of Nov. 29, 2011 was 1,100 barrels of oil per day.

Canaccord Genuity Corp. is financial advisor to Reliable.