Creststreet Mutual Funds Ltd. is asking Canadian securities regulators to extend the period that Creststreet Resource Fund has to reduce the amount of private investments held by the fund, the company said Thursday.

Creststreet is seeking an additional 180 days until May 17, 2009, to reduce the illiquid security component of the fund’s portfolio to below 15% of the net assets of the fund.

The fund exceeded the 15% illiquid security threshold on May 23 when it increased the mark-to-market valuation on a private company investment held by it based on a verified arm’s length third party transaction.

“The fund has been using reasonable commercial efforts to reduce its investments in private companies but such investments remain in excess of the 15% limit on illiquid securities in the fund,” Creststreet said in a release.

As at Nov. 14, illiquid securities comprise 39.8% of the fund’s net assets, of which 28.9% is securities of Athabasca Oil Sands Corp., a private Canadian oil sands development company.

“The fund is actively working towards reducing the illiquid security component of the fund’s portfolio below the required 15% threshold within an additional 180 days,” Creststreet said.

The fund invests primarily in companies in the Canadian energy industry with a focus on Canadian natural gas producers, employing a value-oriented “bottom-up” approach with an emphasis on low-cost production, excellent reserve base and potential for exploration success.

Creststreet specializesin structuring and managing high-quality energy focused investment products for Canadian and international institutional and high-net worth investors.