CWV: TSX.V
CALGARY,
AB, Aug. 11, 2022 /CNW/ - (TSXV: CWV): Crown
Point Energy Inc. ("Crown Point"
or the "Company") is pleased to announce
that its wholly-owned subsidiary has entered into an agreement with
Petrolera Aconcagua Energía S.A. ("Aconcagua") to acquire a
50% working interest in the Puesto Pozo Cercado Oriental
hydrocarbon exploitation concession (the "Concession")
from Aconcagua (the "Acquisition"). Aconcagua will retain
the remaining 50% working interest in the Concession and will
continue to operate the Concession jointly with the Chañares
Herrados concession (in which Crown Point and Aconcagua are also
50/50 working interest partners).
The Concession, which expires in August 2043, is located in the Cuyana basin in
the Province of Mendoza adjacent to the Chañares Herrados
concession and covers approximately 63 square kilometers. There is
2D seismic on 100% of the Concession area and 3D seismic on 80% of
the Concession area.
During June 2022,
the Concession produced an average of approximately 36.4 m3 per day (229 barrels per day)
of crude oil from 14 producing wells. The Concession has total
remaining work commitments of US$26.8
million (US$13.4 million net
to Crown Point).
Crown Point will pay US$5
million for its 50% working interest in the Concession at
closing, which it will fund from the proceeds of its recently
completed note offering. Crown Point will also pay up to an
additional US$7.53 million in
quarterly installments based on a percentage of the EBITDA derived
from Crown Point's interest in the Concession (the "Contingent
Consideration"), provided that the Contingent Consideration
will not be payable until Crown Point has recovered its initial
US$5 million investment from its
share of the EBITDA derived from the Concession.
The Acquisition is expected to close on or about
August 16, 2022.
About Crown Point
Crown Point
Energy Inc. is an international oil and gas exploration and
development company headquartered in Calgary, Canada, incorporated in Canada, trading on the TSX Venture Exchange
and operating in Argentina. Crown
Point's exploration and development activities are focused in three
producing basins in Argentina, the
Austral basin in the province of Tierra del Fuego, and the Neuquén,
Cuyo and Cuyana basins in the province of Mendoza. Crown Point has
a strategy that focuses on establishing a portfolio of producing
properties, plus production enhancement and exploration
opportunities to provide a basis for future growth.
Advisory
Abbreviations: "EBITDA" means
earnings before interest, taxes, depreciation and amortization;
"m3" means cubic meters; "2D" means two dimensional; "3D" means
three dimensional; "US$" means United
States dollars.
Production Rates: Any references
herein to production rates are useful in confirming the presence of
hydrocarbons, however, such 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 rates in calculating the aggregate production for
the Company. Production rates may be estimated based on third party
estimates or limited data available at this time. In all cases
herein, production rates are not necessarily indicative of
long-term performance of the relevant well or fields or of ultimate
recovery of hydrocarbons.
Forward-looking Information: This
document contains forward-looking information. This information
relates to future events and the Company's future performance. All
information and statements contained herein that are not clearly
historical in nature may constitute forward-looking information.
Such information represents the Company's internal projections,
estimates, expectations, beliefs, plans, objectives, assumptions,
intentions or statements about future events or performance. This
information involves known or unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information. Crown Point believes that the expectations reflected
in this forward-looking information are reasonable; however, undue
reliance should not be placed on this forward-looking information,
as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. This press
release contains forward-looking information concerning, among
other things, the following: the anticipated closing date of the
Acquisition; and the Company's business strategies. The reader is
cautioned that such information, although considered reasonable by
the Company, may prove to be incorrect. Actual results achieved
during the forecast period will vary from the information provided
in this document as a result of numerous known and unknown risks
and uncertainties and other factors. A number of risks and other
factors could cause actual results to differ materially from those
expressed in the forward-looking information contained in this
document including, but not limited to, the following: the risk
that closing of the Acquisition is delayed or does not occur; the
risk that the Company changes its business strategies; and the
risks and other factors described under "Risk Factors" in the
Company's most recently filed Annual Information Form, which is
available for viewing on SEDAR at www.sedar.com. With respect to
forward-looking information contained in this document, the Company
has made assumptions regarding, among other things: the ability of
the Company to obtain the financing required on acceptable terms to
fund its share of future work commitments on the Concession; and
the ability of the parties to satisfy the conditions to closing the
Acquisition. Management of Crown Point has included the above
summary of assumptions and risks related to forward-looking
information in order to provide investors with a more complete
perspective on the Company's future operations. Readers are
cautioned that this information may not be appropriate for other
purposes. Readers are cautioned that the foregoing lists of factors
are not exhaustive. The forward-looking information contained in
this document are expressly qualified by this cautionary statement.
The forward-looking information contained herein is made as of the
date of this document and the Company disclaims any intent or
obligation to update publicly any such forward-looking information,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable Canadian securities
laws.
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.
