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Crescent Point, the Calgary-based but Saskatchewan-focused light oil producer, is seen as a predator in the oilpatch, regularly picking up assets over its 14-year history and in the process emerging as an investor favourite and one of the largest non-oilsands producers in the country.

While the Alberta government has pledged not to change the royalty regime until the end of 2016, a panel is expected to present a new royalty framework to the government by the end of this year.

“A rookie government that’s bent on that kind of view, it creates a certain amount of risk,” Saxberg said.

The last royalty review in 2009 by the Conservative government saw land sales values decimated, allowing Crescent Point to pick up Alberta assets like Swan Hill plays at attractive prices, Saxberg said.

“It is a prudent view for Saskatchewan guys to be patient and watch for that review to come through. There is no rush in this price environment to jump into Alberta assets when there can be these significant swings,” Saxberg said.

Neil Rozell, president and CEO of Raging River Exploration Inc., which has interests in both Alberta and Saskatchewan, told the conference the Calgary-based company is strategically positioned to take advantage of acquisition opportunities “if” the bid-ask spread narrows.

“We would like to see the royalty review outcome complete… and like to see some results and put a line in the sand as to what we can pay and how it competes with other assets,” Rozell said during a panel discussion. “We are quite cautious on what we are prepared to bid on at least over the next three months in Alberta.”

yhussain@nationalpost.com

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