CWV: TSX.V
CALGARY, July 27, 2015 /CNW/ - Crown Point Energy
Inc. ("Crown Point" or the "Company") (TSX-V: CWV) today
provided an operational update of its ongoing development,
exploration and recompletion program at its 25.78%-owned Tierra del
Fuego ("TDF") Las Violetas concession and its 100% owned Cerro de
Los Leones concession in the Neuquén Basin.
Tierra del Fuego Operational Update
Additional Three Well Drilling Program Completed in Las
Violetas
Crown Point has completed its program to drill three additional
wells on its Las Violetas concession:
-
- LV-112 was completed on June 4,
2015. During 41 hours of production testing from the
Springhill formation, the well
flowed gas for 21 hours through a 12mm choke at an average gross
rate of 4.85 million cubic feet ("mmcf") per day, plus liquids at
an average gross rate of 80.5 barrels ("bbls") of oil per day
("bopd") and 3.6 barrels of water per day at a flowing well head
pressure of 87 kg/cm2. Then, for 20 hours of subsequent
production testing through a 16mm choke, the well flowed gas at an
average gross rate of 6.81 mmcf per day, plus liquids at an average
gross rate of 79.8 bopd and 15.5 barrels of water per day with a
flowing well head pressure of 69 kg/cm2. The cumulative
volumes recovered during testing were 13.7 mmcf of gas, 187.8 bbls
of oil and 44.6 bbls of water. The well was tied into existing Las
Violetas facilities and placed on production on June 27, 2015.
- LFE-1001 was fracture stimulated in July
2015 and is awaiting post frack clean out.
- SLx-1004, a one kilometre northern offset to exploration well
SL x-1003, was cased as a potential Springhill gas well with an estimated seven
metres of potential gas pay. The well has been slated for fracture
stimulation in August 2015.
Las Violetas Puesto Quince Well Exploration Well
Test
PQ x-1001, the second exploration well, was fracture stimulated
in May 2015 and flowed frack fluid,
water and 40° API oil with oil cuts ranging between one and 40%.
During a six day swab production test of the Springhill formation, the well produced a
total of 3,475 bbls of fluid comprised of 324 bbls of oil (9% of
total volume recovered), 1,199 bbls of formation water (34.5% of
total volume recovered) and 1,952 bbls of treatment fluid (56.2% of
total volume recovered). During testing, the well produced oil,
formation water and fracture stimulation fluid at an average gross
rate of 54 bopd, 200 bbls per day and 325 bbls per day,
respectively. Pumping equipment and production tanks are being
installed for a long term production test which is expected to
commence in August 2015.
Los Flamencos Eight Development Well Drilling
Program
Crown Point provided an update on the final four wells of its
eight development well drilling program in its Las Violetas
concession:
- LF-1028, the fifth development well, suffered mechanical
problems while running casing, and remedial work is planned for the
third quarter of 2015, after which it is anticipated that the well
will be completed and tested.
- LFE-1003, the sixth development well, was recently fracture
stimulated and is undergoing post frack clean out.
- LF-1029, the seventh development well, has been fracture
stimulated and is waiting for a post frack coiled tubing clean
out.
- The final well, LFE-1004, will be completed and production
tested in the third quarter of 2015.
Three 3-D Seismic Acquisition Programs
The Company has completed the acquisition of new 3-D seismic in
Tierra del Fuego, comprised of 58 km2 on the Rio Cullen
concession, 49 km2 on the Angostura concession and 103
km2 on the Las Violetas concession. Processing of the
Rio Cullen data set has been completed and interpretation is
underway, with processing of the Los Violetas and Angostura data
ongoing. The Company will use the newly-acquired seismic data to
review its plans to drill an exploration well on each of the
Angostura and Rio Cullen concessions in the fourth quarter of
2015.
Cerro de Los Leones – Re-entry program
In the fourth quarter of 2015, Crown Point plans to re-enter and
retest two older wells drilled by YPF: Vega del Sol x-1 and Vega del Sol x-3, whose logs and sample
descriptions indicate the potential for bypassed oil pay in the
Neuquén group.
Executive Change
The Company also announced that Marisa Tormakh has been
appointed Vice President, Finance and Chief Financial Officer
("CFO") of Crown Point effective September
1, 2015. Ms. Tormakh replaces Arthur
Madden who is stepping down from that role effective
August 31, 2015.
"On behalf of our Board of Directors and staff, I would like to
thank Art Madden for his tireless
efforts during his five years with Crown Point and wish him every
success in his future endeavors," said Murray McCartney, President and Chief Executive
Officer. "Ms. Tormakh combines a broad expertise in the finance
sector with a track record of enhancing the performance of the
companies she has been involved with. Ms. Tormakh's capital markets
experience and strong background in leadership and team building
will be assets to the Company."
Since 2009, Ms. Tormakh, a resident of Argentina, has served as financial coordinator
at Grupo ST S.A. and Director of Capital Markets at Banco Servicios
y Transactiones S.A., the latter of which has participated in the
provision of more than ARS$3.8 billion and USD$100 million in structured financing to the
Argentine energy industry. Both companies are privately held
Argentine companies operating in the financial services, insurance
and real estate industries and are affiliated with Crown Point's
largest shareholder, Liminar Energía S.A.
Prior to her roles at Banco Servicios y Transactiones S.A.
and Grupo ST S.A., Ms. Tormakh served as Chief Financial Officer
for two business service companies in Argentina for eight years, and prior thereto
was the managing director of Macro Valores (an Argentine brokerage
house). Ms. Tormakh has a Bachelor's in Economics from the Catholic University of Argentina.
About Crown Point
Crown Point Energy Inc. is an international oil and gas
exploration and development company operating in South America, with assets in Argentina's Austral and Neuquén basins. Crown
Point is establishing a portfolio of producing properties and
pursuing exploration and production enhancement opportunities to
provide a basis for future growth. Crown Point is headquartered in
Calgary, Canada and its common
shares are publicly traded on the TSX Venture Exchange under the
symbol "CWV".
Advisory
Forward-Looking Information: Certain information set forth in
this news release, including: the expected timing for fracture
stimulation at SLx-1004; expected timing for
remedial work and completion and testing operations at
LF-1028; that LFE-1004 will be completed and production tested
in the third quarter of 2015; expected timing for a long term
production test at PQ x-1001; the Company's intention
to use newly-acquired seismic data to review its plans to drill an
exploration well on each of the Angostura and Rio Cullen
concessions in the fourth quarter of 2015; the Company's intention
that in the fourth quarter of 2015, it plans to re-enter and retest
two older wells drilled by YPF, Vega del Sol x-1 and Vega del Sol x-3, whose logs and sample
descriptions indicate the potential for bypassed oil pay in the
Neuquén group; and the expected effective date of Mr.
Madden's retirement and Ms. Tormakh's appointment as CFO, is
considered forward-looking information, and necessarily
involve risks and uncertainties, certain of which are beyond our
control. Such risks include but are not limited to: risks
associated with oil and gas exploration, development, exploitation,
production, marketing and transportation; risks associated with
operating in Argentina, including
risks of changing government regulations (including the adoption
of, amendments to, or the cancellation of government incentive
programs or other laws and regulations relating to commodity
prices, taxation, currency controls and export restrictions, in
each case that may adversely impact us),
expropriation/nationalization of assets, price controls on
commodity prices, inability to enforce contracts in certain
circumstances, the potential for a sovereign debt default or a
hyperinflationary economic environment, and other economic and
political risks; risks that required regulatory approvals for the
appointment of the new CFO, as described herein, may not be
received in a timely manner (or at all); risks that third party
operators will not operate in projects where we have an interest in
a safe, efficient and effective manner; risks that third parties
will not satisfy their contractual obligations; loss of
markets and other economic and industry conditions; volatility of
commodity prices; currency fluctuations; imprecision of reserve
estimates; environmental risks; competition from other producers;
inability to retain drilling services; delays resulting from or
inability to obtain required regulatory approvals; the lack of
availability of qualified personnel, services or management; stock
market volatility and ability to access sufficient capital from
internal and external sources; and economic or industry condition
changes. Actual results, performance or achievements could differ
materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be
given that any events anticipated by the forward-looking
information will transpire or occur, or if any of them do so, what
benefits that we will derive therefrom. With respect to
forward-looking information contained herein, we have made
assumptions regarding: the impact of increasing competition; the
general stability of the economic and political environment in
Argentina; the timely receipt of
any required regulatory approvals (including in respect of the new
CFO); the Company's ability to fund its operations and activities
described herein; the Company's ability to obtain qualified staff,
equipment and services in a timely and cost efficient manner;
drilling results; the costs of obtaining equipment and personnel to
complete the operations and other matters described herein; the
ability of the operator of the projects in which we have an
interest to operate the field in a safe, efficient and effective
manner; our ability to obtain financing on acceptable terms when
and if needed; field production rates and decline rates; the
ability to replace and expand oil and natural gas reserves through
acquisition, development and exploration activities; the timing and
costs of pipeline, storage and facility construction and expansion
and our ability to secure adequate product transportation; future
oil and natural gas prices; currency, exchange and interest rates;
the regulatory framework regarding royalties, commodity price
controls, import/export matters, taxes and environmental matters in
Argentina; and our ability to
successfully market our oil and natural gas products. Additional
information on these and other factors that could affect us are
included in reports on file with Canadian securities regulatory
authorities, including under the heading "Risk Factors" in our
annual information form, and may be accessed through the SEDAR
website (www.sedar.com). Furthermore, the forward-looking
statements contained in this news release are made as of the date
of this news release, and we do not undertake any obligation to
update publicly or to revise any of the forward looking statements,
whether as a result of new information, future events or otherwise,
except as may be expressly required by applicable securities
law.
Well-Flow Test Results and Initial Production Rates: Any
references in this news release to well-flow test results and/or
initial production rates are useful in confirming the presence of
hydrocarbons, however, such test results and rates are not
determinative of the rates at which such wells will continue
production and decline thereafter. While encouraging, readers are
cautioned not to place reliance on such test results and rates in
calculating the aggregate production for the Company. Well-flow
test results and initial production rates may be estimated based on
other third party estimates or limited data available at the time.
Well-flow test result data should be considered to be preliminary
until a pressure transient analysis and/or well-test interpretation
has been carried out. In all cases in this news release, well-flow
test results and initial production results are not necessarily
indicative of long-term performance of the relevant well or fields
or of ultimate recovery of hydrocarbons.
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.
SOURCE Crown Point Energy Inc.
