TSX-V: CWV: Crown Point Energy Inc. (“Crown
Point”, the
“Company” or
"
we"
) today announced its
financial and operating results for the three and nine months ended
September 30, 2024.
Selected information is outlined below and
should be read in conjunction with the Company’s September 30, 2024
unaudited condensed interim consolidated financial statements and
management’s discussion and analysis (“MD&A”)
that are being filed with Canadian securities regulatory
authorities and will be made available under the Company’s profile
at www.sedarplus.ca and on the Company’s website at
www.crownpointenergy.com. All dollar figures are expressed
in United States dollars ("USD") unless otherwise
stated.
In the following discussion, the three months
ended September 30, 2024 may be referred to as “Q3 2024”. The
comparative three months ended September 30, 2023, may be referred
to as “Q3 2023”.
Q3 2024 SUMMARY
During Q3 2024, the Company:
- Reported net cash
used in operating activities of $1.8 million and funds flow used in
operating activities of $1.2 million;
- Earned $5.6 million
of oil and natural gas sales revenue on total average daily sales
volumes of 1,410 BOE per day, lower than $7.4 million of oil and
natural gas sales revenue earned on total average daily sales
volumes of 1,502 BOE per day in Q3 2023 due to lower oil sales
volumes in the Mendoza Concessions;
- Received an average
of $3.48 per mcf for natural gas and $66.19 per bbl for oil;
- Reported an
operating netback of $(3.02) per BOE 1 mainly due to the increase
in operating expense in Mendoza Concessions combined with a
decrease in natural gas and oil prices in TDF Concessions;
- Obtained $2.5
million of working capital and overdraft loans, issued $7.18
million principal amount of unsecured fixed-rate Series V Notes and
repaid $2.1 million of notes payable and $3.5 million of working
capital and export financing loans;
- Reported a loss
before taxes of $3.5 million and a net loss of $2.1 million;
- Reported a working
capital deficit2 of $29.7 million; and
- Entered into an
agreement to acquire a 16.9972% non-operating participating
interest in the TDF Concessions for $0.7 million cash ($0.3 million
of which was paid as a deposit), subject to customary closing
adjustments. Completion of the acquisition is subject to the
receipt of all necessary regulatory, stock exchange and Provincial
approvals, the waiver or expiration of applicable rights of first
refusal, and other customary closing conditions.
_______________________________
1 Non-IFRS financial ratio. See "Non-IFRS and Other Financial
Measures".2 Capital management measure. See "Non-IFRS and Other
Financial Measures".
SUBSEQUENT EVENTS
Subsequent to September 30, 2024 the
Company:
- Obtained working
capital and overdraft loans for a total amount of $5.76 million and
repaid $0.64 million on working capital loans.
- Repaid the first
$3.4 million principal installment on the Series IV Notes.
- Issued a total of
$22 million principal amount of secured fixed-rate Series VI Notes
for cash consideration, which are denominated in USD and payable in
USD. The principal amount of the Series VI Notes is repayable in
three equal installments, starting on October 30, 2026 and ending
on October 30, 2027. The Series VI Notes accrue interest at a fixed
rate of 9.5% per annum, payable every six months in arrears from
the issue date. The Series VI Notes are secured with a pledge on
crude oil sales collections from the Santa Cruz Concessions.
- On October 31,
2024, the Company completed the acquisition of a 100% operating
interest in the Piedra Clavada and Koluel Kaike hydrocarbon
exploitation concessions ("Santa Cruz
Concessions"). On the closing date, the Company paid $9.6
million in cash, which corresponds to the remaining balance of the
$12 million base consideration (a $2.4 million advance was
previously paid). Additionally, non-cash consideration was agreed
to be paid over a 15-year period from the closing date, under which
the Company will deliver to the Seller a monthly quantity of oil
produced in the Santa Cruz Concessions, ranging from 0 to 600
barrels of oil per day, subject to the market price of oil
determined for each month.Additionally, the Company paid in cash:
i) $11.3 million for the crude oil inventories and consumables, ii)
$5.3 million for the capitalizable investments and iii) $4.6
million for the corresponding taxes, less the estimated net income
from the Santa Cruz Concessions as of October 31, 2024, which was
$3.2 million. The total amount disbursed, on October 31, 2024, was
$27.6 million and the total amount paid for the Santa Cruz
Concessions (including the $2.4 million advance) was $30 million,
including taxes.The purchase price was financed through the
proceeds from the issuance of the Series VI Notes for $22 million,
plus debt financing obtained with the backing of the Company's
controlling shareholders. The amount paid is subject to the final
review by the parties involved.
OPERATIONAL UPDATE
Tierra del Fuego Concessions ("TDF" or
"TDF Concessions")
During Q3 2024, San Martin oil production
averaged 453 (net 157) bbls of oil per day; Las Violetas concession
natural gas production averaged 8,960 (net 3,112) mcf per day and
oil production averaged 218 (net 76) bbls of oil per day.
Mendoza Concessions
During Q3 2024, the UTE carried out one workover
on an oil well in the the Chañares Herrados concession. Oil
production for Q3 2024 averaged 812 (net 406) bbls of oil per day
from the Chañares Herrados concession and 140 (net 70) bbls of oil
per day from the Puesto Pozo Cercado Oriental concession.
OUTLOOK
- The Company’s
capital spending on developed and producing assets for fiscal 2024
is budgeted at approximately $3.6 million of which $0.8 million is
for improvements to facilities in the TDF Concessions and $2.8
million is for well workovers, facilities improvements and
optimization in the Mendoza Concessions. During the nine months
ended September 30, 2024, the Company incurred $1.8 million of
capital expenditures in the Mendoza and TDF Concessions.
SUMMARY OF FINANCIAL
INFORMATION
|
(expressed in $, except shares outstanding) |
September 302024 |
December 312023 |
|
Current assets |
5,492,636 |
|
7,636,408 |
|
|
Current liabilities |
(35,165,540 |
) |
(19,422,342 |
) |
|
Working capital(1) |
(29,672,904 |
) |
(11,785,934 |
) |
| Exploration and evaluation
assets |
14,094,575 |
|
14,103,353 |
|
| Property and equipment |
41,925,646 |
|
45,834,731 |
|
| Total assets |
66,215,433 |
|
67,785,665 |
|
| Non-current financial
liabilities(1) |
8,993,076 |
|
18,317,856 |
|
| Share capital |
56,456,328 |
|
56,456,328 |
|
| Total
common shares outstanding |
72,903,038 |
|
72,903,038 |
|
|
(expressed in $, except shares outstanding) |
Three months ended |
Nine months ended |
|
|
September 30 |
September 30 |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Oil and natural gas sales revenue |
5,560,809 |
|
7,400,992 |
|
17,246,209 |
|
21,235,332 |
|
| Loss before taxes |
(3,490,096 |
) |
(2,084,976 |
) |
(9,966,566 |
) |
(7,751,038 |
) |
| Net loss |
(2,063,972 |
) |
(2,027,637 |
) |
(6,024,390 |
) |
(6,031,549 |
) |
| Net loss per share(2) |
(0.03 |
) |
(0.03 |
) |
(0.08 |
) |
(0.08 |
) |
| Net cash (used) provided by
operating activities |
(1,793,711 |
) |
2,144,720 |
|
(2,861,420 |
) |
2,453,571 |
|
| Net cash per share – operating
activities(1)(2) |
(0.02 |
) |
0.03 |
|
(0.04 |
) |
0.03 |
|
| Funds flow (used) provided by
operating activities |
(1,201,259 |
|
622,333 |
|
(2,085,892 |
) |
(501,188 |
) |
| Funds flow per share –
operating activities(1)(2) |
(0.02 |
) |
0.01 |
|
(0.03 |
) |
(0.01 |
) |
|
Weighted average number of shares – basic -diluted |
72,903,038 |
|
72,903,038 |
|
72,903,038 |
|
72,903,038 |
|
(1) We adhere to International Financial
Reporting Standards (“IFRS”), however the Company
also employs certain non-IFRS measures to analyze financial
performance, financial position, and cash flow. “Working capital”
is a capital management measure. “Non-current financial
liabilities” is a supplemental financial measure. "Net cash per
share – operating activities" is a supplemental financial measure.
"Funds flow per share – operating activities" is a supplemental
financial measure. See "Non-IFRS and Other Financial
Measures".(2) All per share figures are the same for the basic
and diluted weighted average number of shares outstanding in the
periods. The effect of options is anti-dilutive in loss periods.
Per share amounts may not add due to rounding.
Sales Volumes
|
|
Three months ended |
Nine months ended |
|
|
September 30 |
September 30 |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Total sales volumes (BOE) |
129,807 |
|
138,243 |
|
370,183 |
|
407,863 |
|
|
Light oil bbls per day |
679 |
|
962 |
|
768 |
|
941 |
|
|
NGL bbls per day |
15 |
|
19 |
|
18 |
|
18 |
|
|
Natural gas mcf per day |
4,298 |
|
3,128 |
|
3,392 |
|
3,213 |
|
|
Total BOE per day |
1,410 |
|
1,502 |
|
1,351 |
|
1,495 |
|
Operating Netback (1)
|
|
Three months ended |
Nine months ended |
|
|
September 30 |
September 30 |
|
|
2024 |
2023 |
2024 |
2023 |
|
|
|
Per BOE |
|
Per BOE |
|
Per BOE |
|
Per BOE |
|
Oil and natural gas sales revenue ($) |
5,560,809 |
|
42.84 |
|
7,400,992 |
|
53.54 |
|
17,246,209 |
|
46.59 |
|
21,235,332 |
|
52.06 |
|
|
Export tax ($) |
(76,514 |
) |
(0.59 |
) |
(139,494 |
) |
(1.01 |
) |
(309,309 |
) |
(0.84 |
) |
(377,964 |
) |
(0.93 |
) |
|
Royalties and turnover tax ($) |
(999,926 |
) |
(7.70 |
) |
(1,299,685 |
) |
(9.40 |
) |
(3,045,017 |
) |
(8.23 |
) |
(3,557,850 |
) |
(8.72 |
) |
|
Operating costs ($) |
(4,877,196 |
) |
(37.57 |
) |
(4,793,415 |
) |
(34.67 |
) |
(14,118,773 |
) |
(38.14 |
) |
(15,048,736 |
) |
(36.90 |
) |
|
Operating netback(1)($) |
(392,827 |
) |
(3.02 |
) |
1,168,398 |
|
8.46 |
|
(226,890 |
) |
(0.62 |
) |
2,250,782 |
|
5.51 |
|
|
|
|
|
|
|
|
|
|
|
(1) "Operating netback" is a non-IFRS measure. “Operating
netback per BOE” is a non-IFRS ratio. See "Non-IFRS and Other
Financial Measures".
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 four producing basins in
Argentina, the Golfo San Jorge basin in the Province of Santa Cruz,
the Austral basin in the province of Tierra del Fuego, and the
Neuquén and Cuyo (or 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
Non-IFRS and Other Financial Measures:
Throughout this press release and in other materials disclosed by
the Company, we employ certain measures to analyze financial
performance, financial position, and cash flow. These non-IFRS and
other financial measures do not have any standardized meaning
prescribed by IFRS and therefore may not be comparable to similar
measures provided by other issuers. The non-IFRS and other
financial measures should not be considered to be more meaningful
than financial measures which are determined in accordance with
IFRS, such as net income (loss), oil and natural gas sales revenue
and net cash (used) provided by operating activities as indicators
of our performance.
"Funds flow per share – operating activities" is
a supplemental financial measure. Funds flow per share – operating
activities is comprised of funds flow provided (used) by operating
activities divided by the basic and diluted weighted average number
of common shares outstanding for the period. See “Summary of
Financial Information”.
"Net cash per share – operating activities" is a
supplemental financial measure. Net cash per share – operating
activities is comprised of net cash provided (used) by operating
activities divided by the basic and diluted weighted average number
of common shares outstanding for the period. See “Summary of
Financial Information”.
"Non-current financial liabilities" is a
supplemental financial measure. Non-current financial liabilities
is comprised of the non-current portions of trade and other
payables, notes payable and lease liabilities as presented in the
Company’s consolidated statements of financial position. See
“Summary of Financial Information”.
"Operating Netback" is a non-IFRS measure.
Operating netback is comprised of oil and natural gas sales revenue
less export tax, royalties and turnover tax and operating costs.
Management believes this measure is a useful supplemental measure
of the Company’s profitability relative to commodity prices. See
“Operating Netback” for a reconciliation of operating netback to
oil and natural gas sales revenue, being our nearest measure
prescribed by IFRS.
"Operating netback per BOE" is a non-IFRS ratio.
Operating netback per BOE is comprised of operating netback divided
by total BOE sales volumes in the period. Management believes this
measure is a useful supplemental measure of the Company’s
profitability relative to commodity prices. In addition, management
believes that operating netback per BOE is a key industry
performance measure of operational efficiency and provide investors
with information that is also commonly presented by other crude oil
and natural gas producers. Operating netback is a non-IFRS measure.
See "Operating Netback" for the calculation of operating netback
per BOE.
"Working capital" is a capital management
measure. Working capital is comprised of current assets less
current liabilities. Management believes that working capital is a
useful measure to assess the Company's capital position and its
ability to execute its existing exploration commitments and its
share of any development programs. See “Summary of Financial
Information” for a reconciliation of working capital to current
assets and current liabilities, being our nearest measures
prescribed by IFRS.
Abbreviations and BOE Presentation: "bbl" means
barrel; "bbls" means barrels; "BOE" means barrels of oil
equivalent; "mcf” means thousand cubic feet; "mmcf" means million
cubic feet, "NGL" means natural gas liquids; "UTE" means Union
Transitoria de Empresas, which is a registered joint venture
contract established under the laws of Argentina; "WI" means
working interest. All BOE conversions in this press release are
derived by converting natural gas to oil in the ratio of six mcf of
gas to one bbl of oil. BOE may be misleading, particularly if used
in isolation. A BOE conversion ratio of six mcf of gas to one bbl
of oil (6 mcf: 1 bbl) is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Given that the value
ratio based on the price of crude oil as compared to natural gas in
Argentina from time to time may be different from the energy
equivalency conversion ratio of 6:1, utilizing a conversion on a
6:1 basis may be misleading as an indication of value.
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 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.
In addition, this document may contain forward-looking
information attributed to third party industry sources. 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: under "Q3 2024 Summary", the Company’s expectations
regarding the terms, conditions and timing for closing the proposed
TDF acquisition, including the potential exercise of any ROFR;
under "Outlook", our estimated capital expenditure budget for
fiscal 2024, and the capital expenditures that we intend to make in
our concessions during such period; under "About Crown Point", all
elements of the Company’s business strategy and focus. 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: that the
Company is unable to truck oil to the Enap refinery and/or the Rio
Cullen marine terminal and/or that the cost to do so rises and/or
becomes uneconomic; that the price received by the Company for its
oil is at a substantial discount to the Brent oil price; that the
Company is not able to meet its obligations as they become due and
continue as a going concern; that the Company is unable to complete
the proposed acquisition of the additional interest in the TDF
Concessions on the terms described herein or at all, whether due to
the inability of the Company to obtain financing to fund the cash
portion of the purchase price, obtain requisite regulatory
approvals, satisfy applicable conditions precedent, the exercise of
rights of first refusal, or otherwise; risks associated with the
insolvency and/or bankruptcy of our joint venture partners and/or
the operators of the concessions in which we have an interest,
including the risk that any such insolvency and/or bankruptcy has
an adverse effect on one of our UTEs, one of our concessions and/or
the Company; and the risks and other factors described under
“Business Risks and Uncertainties” in our MD&A and under “Risk
Factors” in the Company’s most recently filed Annual Information
Form, which is available for viewing on SEDAR+ at www.sedarplus.ca.
With respect to forward-looking information contained in this
document, the Company has made assumptions regarding, among other
things: that the Company will complete the proposed acquisition of
the additional interest in the TDF Concessions on the terms
described herein on a timely basis, including the ability of the
Company to obtain the requisite financing to fund the cash portion
of the purchase price on acceptable terms, obtain all requisite
regulatory approvals and satisfy all applicable conditions
precedent; trucking costs; the ability and willingness of OPEC+
nations and other major producers of crude oil to balance crude oil
production levels and thereby sustain higher global crude oil
prices; that our joint venture partners and the operators of our
concessions that we do not operate will honour their contractual
commitments in a timely fashion and will not become insolvent or
bankrupt; the impact of inflation rates in Argentina and the
devaluation of the Argentine peso against the USD on the Company;
the impact of increasing competition; the general stability of the
economic and political environment in which the Company operates
(including in relation to the newly elected President and
Vice-President of Argentina and their administration), including
operating under a consistent regulatory and legal framework in
Argentina; future oil, natural gas and NGL prices (including the
effects of governmental incentive programs and government price
controls thereon); the timely receipt of any required regulatory
approvals; the ability of the Company 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 Company’s capital expenditure program; the ability to
operate the projects in which the Company has an interest in a
safe, efficient and effective manner; that the Company will not pay
dividends for the foreseeable future; the ability of the Company to
obtain financing on acceptable terms when and if needed and
continue as a going concern; the ability of the Company to service
its debt repayments when required; 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 the ability of the Company to secure
adequate product transportation; currency, exchange, inflation and
interest rates; the regulatory framework regarding royalties, taxes
and environmental matters in Argentina; and the ability of the
Company to successfully market its oil and natural gas products.
Management of Crown Point has included the above summary of
assumptions and risks related to forward-looking information
included in this document 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.
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
Crown Point Energy (TSXV:CWV)
過去 株価チャート
から 10 2024 まで 11 2024
Crown Point Energy (TSXV:CWV)
過去 株価チャート
から 11 2023 まで 11 2024
