Pan American Energy and Crown Point Energía reach agreement for assignment of rights over two hydrocarbon areas in Santa Cruz and announce investment commitments in the province
October 10 2024 - 9:29AM
Pan American Energy (PAE) and
Crown Point
Energía S.A. (a wholly owned subsidiary of Crown Point
Energy Inc. ("
Crown Point") (TSXV – CWV)) have
reached an agreement for the assignment of
PAE's
rights over the
Piedra Clavada and Koluel Kaike
areas in the province of Santa Cruz, which produce oil and natural
gas.
The assignment was approved by
the provincial authorities, giving rise to the beginning of a
transition process to ensure the operational continuity of these
assets. This transaction expands Crown Point
Energía's portfolio in Argentina, while also becoming an
operator of hydrocarbon assets in the province of Santa Cruz.
PAE will focus on boosting
other areas operated by the company in Santa Cruz, maintaining
activity in Cerro Dragón Santa Cruz and advancing
with the exploration of the neighboring area Meseta Cerón
Chico, both located in the north of Santa Cruz.
Investments in the Province of Santa
Cruz
Crown Point Energía announced
an investment commitment of USD 41.5 million by
end- 2026 in the Piedra Clavada
and Koluel Kaike areas, a figure that could reach
USD 90.8 million if a contingent work program,
which includes the drilling of 10 additional wells plus other
activities, is implemented. Additionally, Crown Point Energía also
committed from 2027 onwards to invest USD 20
million and drill 6 wells, to which a complementary plan
involving almost USD 20 million more could be added with the
drilling of 6 additional wells.
Pan American Energy will
continue with its investment commitment in the Province of Santa
Cruz and with the communities near its operations, as it has been
doing steadily for several decades. In this regard, between
2005 and 2023, PAE invested more
than USD 1.4 billion in Santa Cruz. Regarding
2024, the company is executing an investment plan in Santa Cruz
that will reach approximately USD 90 million in the
year, which includes the drilling of 22 development wells
and a plan of 25 well interventions in the Cerro Dragón
Santa Cruz area, and 1 exploratory well in the
Meseta Cerón Chico area. If this exploratory well
is successful, a potential work plan of 35 producer and injector
wells could be developed in the coming years in that area.
For further details, please refer to the press
releases issued by Crown Point on February 9 and April 15, 2024,
copies of which are available on www.sedarplus.ca.
About Crown Point
Crown Point is an international oil and gas
exploration and development company incorporated in Alberta,
Canada, trading on the TSX Venture Exchange and operating in
Argentina. Crown Point's exploration and development activities are
currently focused in three producing basins in Argentina, the
Austral basin in the province of Tierra del Fuego, and the Neuquén
and Cuyano basins in the province of Mendoza. 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 Information: Certain information
set forth in this document is considered forward-looking
information, and necessarily involves risks and uncertainties,
certain of which are beyond Crown Point's control. Forward-looking
information herein includes: statements regarding the operational
continuity of certain assets in connection with the assignment;
statements regarding the anticipated closing date of the
transaction; statements regarding the anticipated benefits to be
derived from completion of the transaction; statements regarding
Crown Point Energía's investment commitment and the timing thereof,
including, without limitation, the potential quantums of such
investment commitment and the underlying assumptions and the number
of wells to be drilled and the timing thereof; and certain elements
of the business strategy and focus of Crown Point. With respect to
forward-looking information contained in this document, Crown Point
has made assumptions regarding various matters, including, without
limitation, that the transaction will close on the expected terms
and timing; that the transaction will result in the anticipated
benefits; prevailing commodity prices and exchange rates;
applicable royalty rates and tax laws; the success obtained in
drilling new wells; the sufficiency of budgeted capital
expenditures in carrying out planned activities; and the
availability and cost of labour and services. Although Crown Point
believes that the expectations and assumptions on which such
forward-looking information is based are reasonable, undue reliance
should not be placed on the forward-looking information because
Crown Point can give no assurances that they will prove to be
correct. Since forward-looking information addresses future events
and conditions, by its very nature it involves inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
risks include, without limitation: the closing of the
transaction is delayed or does not occur; failure to obtain the
debt and/or other financing required to fund the purchase price for
the acquisition; the risk that the transition process will not
result in the operational continuity of certain assets in
connection with the assignment; failure to realize the anticipated
benefits of the transaction; risks associated with 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 costs, including drilling, completion
and facility costs; wells not performing as expected; delays
resulting from labour unrest; delays resulting from 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) and changes in how they are interpreted and
enforced; increased competition; the lack of availability of
qualified personnel or management; fluctuations in foreign exchange
or interest rates; and stock market volatility and market
valuations of companies with respect to announced transactions and
the final valuations thereof. Readers are cautioned that the
foregoing list of factors is not exhaustive. 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 Crown Point
will derive therefrom. 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 Crown Point's
SEDAR+ profile (www.sedarplus.ca) or Crown Point's website
(www.crownpointenergy.com). 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.
This press release also includes information
provided by PAE. None of Crown Point or its affiliates have
independently verified any of the information related to PAE
referred to in this press release.
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 inquiries please contact:
Gabriel Obrador
President & CEO
Ph: (403) 232-1150
Crown Point Energy Inc.
gobrador@crownpointenergy.com
Marisa Tormakh
Vice-President, Finance & CFO
Ph: (403) 232-1150
Crown Point Energy Inc.
mtormakh@crownpointenergy.com
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