CWV Crown Point Energy Inc

Crown Point Energy Inc. (TSX VENTURE:CWV) ("Crown Point" or "the Company") is
pleased to provide an operational update for its 25.78% interest Las Violetas
Exploitation Concession in the Province of Tierra del Fuego and for its 100%
interest Neuquen Basin, Cerro de Los Leones Exploration Concession in the
Province of Mendoza. 


Operational Update 

Tierra del Fuego, Austral Basin 

Drilling Operations

Crown Point and its partners are currently reviewing several drilling rig
options and negotiations are underway to obtain and import a drilling rig into
Tierra del Fuego to conduct a multi-well and multi-year drilling program on its
25.78% interest Las Violetas Exploitation Concession in the Province of Tierra
del Fuego. Drilling operations are expected to commence in the fourth quarter of
2013. The initial program of 8 wells is part of a multi-well drilling campaign
to exploit the predominantly gas charged Springhill sandstones on its
concessions in the Province of Tierra del Fuego in particular the Las Violetas
Concession. Capital expenditures for Crown Points' capital program are expected
to be funded using Crown Point's existing resources and cash flows. 


The initial eight well phase of the Las Violetas Exploitation Concession
drilling program is a low risk development program. These wells are expected to
take 20 days to drill and case (including rig up and rig down), and completion
and tie-in are expected to take an additional 30 days per well.


The locations are fully defined with 3D seismic and are either infill locations
or low risk pool step-outs. Additionally, Crown Point and its partners have
identified a number of high reward exploration and exploitation locations on the
Las Violetas Exploitation Concession. If any future drilling activities at these
locations is successful, it could further add to the present drilling inventory.



It is anticipated that production increases resulting from the drilling program
will qualify for improved gas pricing under the New Gas Incentive Program,
announced by the Argentine government in January 2013. Crown Point has applied
for participation in the New Gas Incentive Program. The government of Argentina
has extended the negotiation period until August 15, 2013


As previously announced, Crown Point and its partners recently received all
necessary governmental approvals for 10 year extensions of the Las Violetas
Exploitation Concession, as well as the Rio Cullen and Angostura Exploitation
Concessions, in which Crown Point also holds a 25.78% interest and which are
also in the Province of Tierra del Fuego. The following are the key terms of the
extensions: 


Las Violetas Exploitation Concession 



--  Cash payment: US$5 million (gross) (net $1.3 million) paid in three
    equal installments commencing immediately and subsequently in 180 day
    successive periods; 
    
--  Base royalty: increase from 12 to 15%; 
    
--  Variable royalty: 0.5% to a maximum of 2.5% (in 0.5% increments) with
    increasing oil and gas prices; 
    
--  Minimum total development investment commitment: US$46.9 million
    including 18 wells (gross) (net US$12.1 million) to be expended over the
    remaining life of the concession;  
    
--  Minimum total exploration investment commitment: US$5.0 million (gross)
    (net US$1.25 million) to be expended over the next 60 months. 



The two year capital commitment for the Las Violetas Exploitation Concession,
including the extension fee, development and exploration commitments, is
US$21.23 million (gross) (net - US$5.47mm). 


Rio Cullen and Angostura Exploitation Concessions



--  Exploration commitment - Rio Cullen: US$3.3 million (gross) (net US$0.85
    million), Angostura: US$3.8 million (gross) (net US$0.98 million) which
    in both cases includes seismic and drilling and is to be expended over a
    24 month period. 
    
--  Base royalty: increase from 12 to 15%; 
    
--  Variable royalty: 0.5% to 2.5% (in 0.5% increments) with increasing oil
    and gas prices; and 
    
--  After fulfillment of the exploration commitments there is an additional
    minimum total additional investment commitment on each concession:
    US$1.8 million (gross) (net US$0.46 million).



The combined two year capital commitment for both the Rio Cullen and Angostura
Exploitation Concessions is US$7.1 million (gross) (net - US$1.83mm).


Cerro de Los Leones, Province of Mendoza, Neuquen Basin 

The seismic interpretation and geological integration continues at the 100%
interest Cerro de Los Leones Exploration Concession focusing on two separate
potentially multi-zone structural features. These structural features have been
identified on the recently acquired 3-D seismic program. The structural features
comprise the northern extension of a larger structural trend of producing fields
located immediately to the south of Crown Point's concession, which producing
fields include the YPF field Pampa Palauco. The Argentina Secretary of Energy
records show that Pampa Palauco has to date produced 21.4 million barrels of
oil. Engineering well design and reservoir evaluation is underway for these two
prospects. A drilling rig of suitable capacity to drill and evaluate these two
structures is expected to be available at year end. These drilling of these
structures would evaluate both the conventional reservoirs as well as the
unconventional Vaca Muerta oil shales.


About Crown Point

Crown Point Energy Inc. is an international oil and gas exploration and
development company headquartered in Calgary, Canada, incorporated in Canada,
trading on the TSX Venture Exchange and operating in South America. Crown
Point's exploration and development activities are focused in the Golfo San
Jorge, Neuquen and Austral basins in Argentina. Crown Point has a strategy that
focuses on establishing a portfolio of producing properties, plus production
enhancement and exploration opportunities to provide a basis for future growth.


Advisories 

Forward-Looking Statements 

Certain information regarding Crown Point set forth in this document may
constitute forward-looking statements under applicable securities laws and
necessarily involve substantial known and unknown risks and uncertainties,
including information relating to the following: the intent of Crown Point and
its partners to import a drilling rig into Tierra del Fuego to conduct a
multi-well and multi-year drilling program; the expectation that drilling
operations in the Las Violetas Exploitation Concession will commence in the
fourth quarter of 2013 and the number of wells to be drilled; the expectation
that the multi-well Las Violetas Exploitation Concession drill program will
target predominantly gas charged Springhill sandstones; the expectation of how
capital expenditures will be funded; the expectation that drilling on the Las
Violetas Exploitation Concession represents a low risk development program; the
expected time to drill, case, tie-in and complete the wells to be drilled; the
expectation that successful drilling on certain high reward exploration and
exploitation locations on the Las Violetas Exploitation Concession could add
additional drilling locations; the expectation that production increases
resulting from the drilling program will be eligible for the New Gas Program;
and the timing of the availability of a drilling rig for evaluating certain
prospects on the Cerro de Los Leones Exploration Concession. These
forward-looking statements are based on numerous assumptions including but not
limited to the following: the Company being eligible for the New Gas Program and
the terms thereof, drilling success, expectations with respect to future
production levels, future capital expenditure levels, expectations of cash flow
from operating activities, commodity prices, costs associated with capital
expenditures, the availability of personnel and equipment when expected, the
timely receipt of applicable regulatory and other governmental approvals, and
the continuance of existing laws and regulations. 

The reader is cautioned that assumptions used in the preparation of such
information may prove to be incorrect. These forward-looking statements are
subject to numerous risks and uncertainties, certain of which are beyond Crown
Point's control, including without limitation, risks associated with the
following: oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity prices,
environmental risks, inability to obtain drilling rigs or other services,
capital expenditure cost increases, including drilling, completion and facility
costs, unexpected decline rates in wells, wells not performing as expected,
delays resulting from or inability to obtain required regulatory approvals,
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, Argentina, the United States
and overseas, industry conditions, changes in laws and regulations (including
the adoption of new environmental laws and regulations, changes to tax laws and
changes to the New Gas Program) and changes in how they are interpreted and
enforced, political risks (including the risk of the expropriation of the
Company's assets), increased competition, the lack of availability of qualified
personnel or management, fluctuations in foreign exchange or interest rates, and
stock market volatility. Readers are cautioned that the foregoing list of
factors is not exhaustive. Crown Point's actual results, performance or
achievement could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits that the Company will
derive therefrom. Readers are cautioned that the foregoing list of factors is
not exhaustive. All forward-looking statements, whether written or oral,
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Additional
information on these and other factors that could affect Crown Point's
operations and financial results are included in reports on file with Canadian
securities regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com ) or Crown Point's website (www.crownpointventures.ca ). The
forward-looking statements contained in this document are made as at the date of
this news release and Crown Point does not undertake any obligation to update
publicly or to revise any of the included forward-looking statements, whether as
a result of new information, future events or otherwise, except as may be
required by applicable securities laws.


Analogous Information

Certain information contained herein is considered "analogous information" as
defined in National Instrument 51-101 - Standards of Disclosure of Oil and Gas
Activities ("NI 51-101"). Such analogous information has not been prepared in
accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. In
particular, this press release presents overviews of certain historic production
relating to fields in close proximity to areas in which the Company has an
interest. Such information is based on independent public data and public
information received from other government sources and the Company has no way of
verifying the accuracy of such information. Such information has been presented
to help demonstrate that hydrocarbons may be present in the Company's area of
interest. There is no certainty that such results will be achieved by the
Company and such information should not be construed as an estimate of future
reserves or resources or future production levels.


TSX Venture Exchange 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this news release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Crown Point Energy Inc.
Murray D. McCartney
President & CEO
(403) 232-1150
mmccartney@crownpointenergy.com


Crown Point Energy Inc.
Arthur J.G. Madden
Vice-President & CFO
(403) 232-1150
amadden@crownpointenergy.com


Crown Point Energy Inc.
Brian J. Moss
Executive Vice-President & COO
(403) 232-1150
bmoss@crownpointenergy.com
www.crownpointenergy.com

Crown Point Energy (TSXV:CWV)
Historical Stock Chart
From Jun 2024 to Jul 2024

Crown Point Energy (TSXV:CWV)
Historical Stock Chart
From Jul 2023 to Jul 2024