CALGARY, Alberta, March 4 (Reuters) - TriStar Oil & Gas and Crescent Point Energy Trust said on Wednesday they've agreed to buy Talisman Energy Inc's lands in the prolific Bakken oil region of Saskatchewan and Montana for C$720 million ($567 million) to boost output.
The two companies will split the purchase price and jointly operate the assets, which produce about 8,500 barrels of oil equivalent per day (boed) and bring likely reserves of 45.6 million boed on 610,000 acres of exploration lands in southeast Saskatchewan.
The Bakken shale region, which extends through parts of Montana, North Dakota and Saskatchewan, produces valuable but difficult to extract light oil.
Talisman put its holdings on the block earlier this year as plunging oil prices cut into profits despite the region's vast reserves and as it looks to concentrate drilling efforts on its unconventional natural gas assets.
'This is in keeping with our strategic objective to focus Talisman's portfolio on material, core assets,' John Manzoni, Talisman's chief executive, said in a release.
TriStar and Crescent Point have also agreed to sell some of the properties to Shelter Bay Energy Inc, a fund controlled by Crescent Point. The assets going to Shelter Bay produce about 500 boed.
TriStar said it will pay for a portion of the acquisition by selling 31.25 million subscription receipts to a group of underwriters led by Macquarie Capital Markets Canada.
The sale of the receipts, priced at C$8.00 each, will raise about C$250 million.
Separately, Crescent Point will sell 10.83 million trust units in a bought deal to raise C$230 million.
With the deal expected to close June 1, Crescent Point also boosted its expected production rates for the year by to 40,500 boed from 38,250 boed.
Crescent Point units rose C$1.29 to C$23.09 and TriStar shares rose 61 Canadian cents to C$9.31 on the Toronto Stock Exchange on Wednesday.
Talisman shares rose 76 Canadian cents to C$11.48. ($1=$1.27 Canadian)
(Reporting by Scott Haggett; Editing by Peter Galloway) Keywords: TALISMAN TRISTAR/CRESCENTPOINT (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The two companies will split the purchase price and jointly operate the assets, which produce about 8,500 barrels of oil equivalent per day (boed) and bring likely reserves of 45.6 million boed on 610,000 acres of exploration lands in southeast Saskatchewan.
The Bakken shale region, which extends through parts of Montana, North Dakota and Saskatchewan, produces valuable but difficult to extract light oil.
Talisman put its holdings on the block earlier this year as plunging oil prices cut into profits despite the region's vast reserves and as it looks to concentrate drilling efforts on its unconventional natural gas assets.
'This is in keeping with our strategic objective to focus Talisman's portfolio on material, core assets,' John Manzoni, Talisman's chief executive, said in a release.
TriStar and Crescent Point have also agreed to sell some of the properties to Shelter Bay Energy Inc, a fund controlled by Crescent Point. The assets going to Shelter Bay produce about 500 boed.
TriStar said it will pay for a portion of the acquisition by selling 31.25 million subscription receipts to a group of underwriters led by Macquarie Capital Markets Canada.
The sale of the receipts, priced at C$8.00 each, will raise about C$250 million.
Separately, Crescent Point will sell 10.83 million trust units in a bought deal to raise C$230 million.
With the deal expected to close June 1, Crescent Point also boosted its expected production rates for the year by to 40,500 boed from 38,250 boed.
Crescent Point units rose C$1.29 to C$23.09 and TriStar shares rose 61 Canadian cents to C$9.31 on the Toronto Stock Exchange on Wednesday.
Talisman shares rose 76 Canadian cents to C$11.48. ($1=$1.27 Canadian)
(Reporting by Scott Haggett; Editing by Peter Galloway) Keywords: TALISMAN TRISTAR/CRESCENTPOINT (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.