Crescent Point Unveils 2011 Capital Budget

Crescent Point Energy Corp. is pleased to announce an $800 million capital development expenditures budget for 2011. Execution of the budget is expected to increase average daily production to more than 72,500 boe/d, weighted 90 percent to light and medium crude oil and liquids.

Crescent Point expects to spend approximately 62 percent of its 2011 budget in the Viewfield Bakken area of southeast Saskatchewan, drilling approximately 200 net wells in the area in 2011. To accommodate continued growth of the Company's Bakken production, Crescent Point expects to invest up to $45 million on infrastructure projects. As part of its ongoing water flood implementation project, the Company expects to convert up to 23 net horizontal wells into water injection wells, increasing the total number of Bakken water injection wells to approximately 36 by year-end 2011.

In the Shaunavon area of southwest Saskatchewan, Crescent Point plans to spend approximately 16 percent of the 2011 budget, drilling approximately 44 net wells, which will target both the Lower Shaunavon resource play and the Upper Shaunavon emerging resource play. The Company plans to implement its fourth water flood pilot in the Lower Shaunavon and to invest up to $27 million in infrastructure projects, including the construction of a gas processing plant, a central oil battery and expansion of the area's crude oil and natural gas gathering systems.

Approximately 10 percent of the budget is expected to be allocated to the Company's Flat Lake resource play in southeast Saskatchewan and North Dakota, as well as the emerging resource plays in southern Alberta. Approximately 23 net wells are planned for these areas.

The remainder of the budget will be allocated to Crescent Point's other conventional properties in Saskatchewan and Alberta.

In total, approximately 84% of the budget is expected to be allocated to drilling and completions, with a total of 311 net wells planned. The remainder of the budget is expected to be allocated to infrastructure investments, undeveloped land acquisitions and seismic.

"Next year Crescent Point will celebrate its tenth anniversary of providing strong returns to shareholders," said Scott Saxberg, president and CEO of the Company. "We have grown year over year since inception and we plan to continue that success in 2011 by focusing on the development and water flood expansion of our core Bakken and Lower Shaunavon resource plays."


Crescent Point continues to execute its business plan of creating sustainable value-added growth in reserves, production and cash flow through management's integrated strategy of acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties in western Canada.

In 2011, the Company plans to drill 311 net wells of its more than 6,000 net internally identified low-risk drilling locations in inventory. This drilling inventory depth positions the Company well for long-term sustainable growth in production, reserves and net asset value, and provides long-term support for dividends.

Execution of the 2011 capital expenditures budget is expected to increase Crescent Point's average daily production to more than 72,500 boe/d and to provide for exit 2011 production of greater than 75,000 boe/d. The 2011 capital program is consistent with the Company's five-year plan and Crescent Point continues to target internal organic growth of greater than five percent per year.

In setting its 2011 guidance, the Company has not included any upside relating to production performance associated with its Bakken water flood program, but has included the anticipated production impact of the shut in and conversion of producing wells to water injection wells. Also, as a result of the wet weather conditions experienced during 2010, the 2011 guidance outlook assumes a longer than usual spring break-up during second quarter.

Funds flow from operations for 2011 is expected to be approximately $1.1 billion, with a payout ratio of 69 percent, based on forecast pricing of US$85 per barrel WTI, Cdn$3.75 per mcf AECO gas and a US$0.99 exchange rate. Crescent Point's balance sheet remains strong, with projected net debt to 12-month cash flow of approximately 1.1 times and approximately $725 million currently unutilized on its bank lines.

The Company continues to implement is balanced 3 1/2-year price risk management program, using a combination of swaps, collars and purchased put options with investment grade counterparties. As at December 10, 2010, the Company had hedged 52 percent, 42 percent, 30 percent and 9 percent of production, net of royalty interest, for 2011, 2012, 2013 and the first quarter of 2014, respectively. Average quarterly hedge prices range from Cdn$83 per boe to Cdn$92 per boe.