Crescent Point Income Trust may pull money from Alta. over royalties

Another Alberta energy company is talking about pulling money out of the province over a report that proposed a 20 per cent hike in royalties.

Crescent Point Energy Trust said Tuesday it would shift about $150 million in investment to Saskatchewan.

"Because of the uncertainty created by the report, Crescent Point has decided to direct all of its $150 million 2008 preliminary capital development budget to the province of Saskatchewan," said Scott Saxberg,president and CEO of Crescent Point.

"Increased royalty rates in Alberta would decrease the rates of return on projects in the province, making investments in other jurisdictions more attractive," Saxberg said.

Last week, energy sector heavyweight EnCana Corp. threatened to pull $1 billion in spending out ofAlberta next year.

Saxberg said Crescent Point welcomed Premier Ed Stelmach's decision to consult with industry before making decisions on the report's recommendations.

"We believe that the report does not consider all of the factors, including costs and risk, that make up the full cycle economics of drilling for conventional oil and natural gas in the maturing Western Canadian sedimentary basin," Saxberg said.

On Monday, the provincial auditor general said the government knew at least three years ago that it was losing royalties from energy projects such as the oilsands.

Units of Crescent Point rose 11 cents to close at $20.92 on the TSX.