The Tatagwa property is a medium gravity oil property with 230 mmbbls of original oil in place, of which only five percent has been recovered to date. Crescent Point operates the property and has an 80 percent working interest in it. The Trust’s share of production is currently approximately 2,400 bbls/d.

The Tatagwa Unit was acquired in 2003 as part of the transaction establishing Crescent Point as an income trust. The previous operator implemented a waterflood in early 2003, which has resulted in significant increases in well productivity and a substantial reduction in decline rates of several wells. With ongoing waterflood optimization and detailed technical engineering, the Trust has increased the recovery factor from 6.8 percent in 2003 to 10.1 percent today.

Based on studies of analog pools, including several waterfloods in southeast Saskatchewan, the Trust’s technical team believes that ongoing waterflood optimization and infill drilling can increase the recovery factor to 19.4 percent, adding net incremental proved plus probable reserves of 10.6 mmboe.