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Monday, February 26, 2007

Crescent Point Energy Trust CPG.UN-TSX

Today I bought 1,000 units of Crescent Point Energy Trust. This trust is 80% oil and their acqusition of Mission Oil makes them the largest oil producer in the Province of Saskatchewan.

This Trust has lots of drilling targets and will not need to go to the market to fund capital expenditures.

With enhanced recovery techniques such as Carbon Dioxide flooding I think they have a good chance of increasing reserves per unit while at the same time paying out a healthy distribution of $0.20 per month which is an annualized yield of 13.3%.

So I get growth plus a healthy yield. This meets my investing for income strategy.

I also think that with the carbon dioxide sequestering they will pick up future global warming credits if they come to pass.

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