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Msg  15209 of 23120  at  12/16/2010 8:56:23 PM  by

petere1


Canaccord on Crescent Point Energy*

Crescent Point Energy* (CPG : TSX : $43.50), Net Change: -0.03, % Change: -0.07%, Volume: 1,091,169
Baby got Bakken. Crescent Point Energy, one of the largest oil companies in Saskatchewan's Bakken area, announced a 2011
capital budget of $800 million with average production guidance of over 72,500 boe/d (90% oil) and a 2011 exit production rate
of over 75,000 boe/d. Crescent Point is targeting an internal organic growth rate over 5% per year. With approximately 84% of
the capital to be spent on drilling/completions activity, with 311 net wells planned. Much of this capital will be allocated toward
development programs and various infrastructure projects within Crescent Points Viewfield Bakken, Lower/Upper Shaunavon
and Flat Lake Bakken and southern Alberta core areas. Overall the companys guidance varied slightly from Canaccord Genuity
Oil & Gas Analyst Kyle Prestons capex forecast of $750 million and average production forecast of 75,000 boe/d. However,
his underlying valuation is relatively unchanged as the company remains focused on the development of its extensive Bakken
and Shaunavon resource play inventory. In addition, the company will also be advancing the water flood pilots on each of these
plays while also exploring for additional resource potential from its Flat Lake and southern Alberta properties. While he
believes the water flood projects and new exploration prospects could expand the companys resource potential, he also believes
a portion of this is already priced in the shares. Preston left his target price unchanged but lowered his rating to neutral given the
stocks recent price appreciation.


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