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UPDATE: Crescent Point Down 2% as Announces Strategic U.S. Buys, Increase in 2011 Exit Guidance, $375M Bought Deal Financing

Crescent Point Energy Corp. (CPG.TO) announced that it has acquired approximately 750 boe/d of production and more than 78 net sections of lower-risk land in North Dakota, U.S., through two strategic acquisitions.

As a result of the acquisitions, Crescent Point is upwardly revising its 2011 capital expenditure plans and production guidance. Capital expenditures are expected to increase by $50 million to $1.05 billion, with 100% of the increase allocated to development capital on the acquired assets. In conjunction with the acquisitions, the company has entered into a two-year agreement with a leading U.S. fracture stimulation company with operations in North Dakota to secure access to equipment and services for the company's expanded development plans in 2012. Crescent Point is also upwardly revising its 2011 exit production rate to more than 77,500 boe/d from 76,500 boe/d.

The company also announced that it has entered into an agreement, on a bought deal basis, with a syndicate of underwriters for an offering of 8,625,000 Crescent Point shares at $43.50 per share to raise gross proceeds of approximately $375 million.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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