June 25th, 2015
CPG / AUG / Oil Spills

Dear Valued Readers:

Oil is trading at about $60USD per barrel (West Texas). Over the last couple months it has been ranging between $56USD and $63USD.

In our last newsletter I focused on Crescent Point Energy [ CPG NYSE / TSX ] and near the end of my write up I wrote: "You never know, Crescent Point may even buy production as smaller companies struggle to survive with there high debt loads."

Well about a week later they announced that they were acquiring Legacy Oil & Gas Inc [ LEG TSX ] for $1.53 billion, Legacy was also on my watch list!

"Legacy is a publicly traded, light oil-weighted producer with approximately 22,000 barrels of oil equivalent per day of high-netback production, of which more than 15,000 barrels of oil equivalent per day are from conventional and unconventional plays in Crescent Point's core southeast Saskatchewan, Manitoba and North Dakota areas. The assets to be acquired include approximately 1,000 net sections of land, of which approximately 525 net sections are in southeast Saskatchewan. The southeast Saskatchewan lands include approximately 200 net sections in the emerging and highly economic Midale light oil resource play."

The company's shares dropped slightly after the deal was announced and their dividend is now at 10.12%.

Definitely a company
to keep an eye on.