Crescent Point Energy Corp. is buying private oil and gas firm Wave Energy in a $665-million all-stock deal that significantly boosts Crescent Point's Saskatchewan oil assets.
Wave Energy controls land in Saskatchewan's Lower Shaunavon resource play that contains more than a billion barrels of oil, according to company estimates.
Under terms of the deal, Wave shareholders will receive 0.21 of a Crescent Point share for each Wave share. Crescent Point will also assume $57.9 million of Wave's debt.
The purchase is part of a major ramp-up by Crescent Point in the province. The company also announced it had acquired other producing assets in southeast and southwest parts of Saskatchewan for $258 million. The assets produce 3,750 barrels of oil equivalent per day.
It is also boosting capital spending this year by $100 million to $325 million.
The various deals have led Crescent Point to boost its year-end production guidance by 16 per cent to 51,500 barrels of oil equivalent per day.
Crescent Point also announced plans to raise $200 million by selling 5.8 million shares at $34.50 per share to a group of underwriters led by Scotia Capital Inc., BMO Capital Markets and CIBC. That's $1.40 below the price where Crescent Point shares closed on Friday.
At the close of TSX trading on Monday, Crescent Point shares were up 10 cents to $36. The shares have a 52-week range of $18.13 to $39.24.