2014 Press Releases
December 04, 2014
TSX-V: CWV: Crown Point Energy Inc. (“Crown Point” or the “Company”) announces that in response to a requisition made by LAIG Oil Investments (“LAIG”), Crown Point has called a special meeting of shareholders (the “Special Meeting”) to be held on March 24, 2015.
Crown Point’s Board selected the date for the Special Meeting based on a recommendation from a special committee of independent directors (the “Special Committee”). Crown Point’s Board formed the Special Committee to, among other things, consider and respond to LAIG’s meeting requisition. LAIG requisitioned the Special Meeting notwithstanding that only five months prior to the date of the requisition the current directors of Crown Point were each elected by at least 96% of the votes cast by shareholders at Crown Point’s 2014 annual general meeting. LAIG’s stated objective for the Special Meeting is to remove all of Crown Point’s independent directors and elect a majority of its own nominees to the Board.
The Special Meeting date will provide the time required to inform shareholders about the results of Crown Point’s ongoing 14 well capital program at Tierra del Fuego and the impact of that program on our production and reserves. Crown Point is targeting to have the capital program completed in February 2015 and to have its 2014 year-end reserves report completed in early March 2015. The Company intends to disclose the details as they become available so that shareholders will have this critical information prior to voting on the business to be conducted at the Special Meeting.
Crown Point will provide further important information regarding the Special Meeting in due course. A management information circular will be mailed to shareholders and posted to the Company’s website and SEDAR in advance of the meeting.
For inquiries please contact:
President & CEO
Ph: (403) 232-1150
Crown Point Energy Inc.
About Crown Point
Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in Calgary, Canada, incorporated in Alberta, Canada, trading on the TSX Venture Exchange and operating in South America. Crown Point’s exploration and development activities are focused in the Austral and Neuquén 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.
Certain Oil and Gas Disclosures: Barrels of oil equivalent (“BOE”) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand Mcf 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 current price of crude oil as compared to natural gas in Argentina is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value. “BOEPD” means barrels of oil equivalent per day
Non-IFRS Measures: This press release discloses “funds flow from operations” which does not have standardized meanings under International Financial Reporting Standards (“IFRS”) and as such may not be comparable with the calculation of similar measures used by other entities. Funds flow from operations should not be considered an alternative to or more meaningful than, cash flow from operating activities as determined in accordance with IFRS as an indicator of the Company’s performance. Management uses funds flow from operations to analyze operating performance and considers funds flow from operations to be a key measure as it demonstrates the Company’s ability to generate cash necessary to fund future capital investment. A reconciliation of funds flow from operations to cash flow from operating activities is presented in the MD&A under “Non-IFRS Measures”.
Forward looking information: This press release 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 forwardlooking information, and the words “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “propose”, “predict”, “potential”, “continue”, “aim”, or the negative of these terms or other comparable terminology are generally intended to identify 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 forwardlooking information. In addition, this press release 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: the Company’s assessment that TDF sales volumes will begin to rebound as a result of its ongoing 14-well TDF development, recompletion and exploration program now underway and that on closing of the proposed $15 million financing, the financing will strengthen the Company’s balance sheet and also reinforce its board, as two representatives of the investors will join as directors; the Company’s description of a pending and proposed $15 million financing, including the closing conditions, the expectation that the financing will be completed in two tranches, the expected use of proceeds and the expected gross proceeds from each closing; the Company’s belief that it can stabilize (and possibly increase) production at TDF with recent drilling successes; various matters under the heading “Operations Outlook” including, Crown Point’s expectation that it will complete its 14 well program at TDF in Q4 2014 or Q1 2015 and that commercial successes could lead to further drilling; Crown Point’s expectation for revenues in Q4 2014 and the Company’s assessment of current Argentine market conditions on natural gas prices; the Company’s forecast TDF daily sales volumes for Q4 2014; the Company’s possible plans for future testing operations at its La Hoyada well in Cerro de Los Leones in 2015; the Company’s assessment of its ability to continue as a going concern and the potential risks and consequences to the Company as a result of the same, including the potential loss or forfeiture of certain assets; the Company’s assessment that if both tranches of the financing are successfully concluded in a timely fashion, that it expects that it will have sufficient working capital to meet current financial obligations for the next 12 months; the Company’s assessment of the potential for re-entry operations being conducted at LF-1028 for remedial work; the Company’s expectation that testing operations at SL x- 1003 and PQ x 1001 will occur in the fourth quarter of 2014; Crown Point’s estimates of its future capital commitments and how it expects that it may satisfy such commitments, including pursuant to the completion of the $15 million financing described herein; the Company’s assessment on its ability to meet its capital commitments in the next 12 months, the potential sources of funds to meet such commitments; and the Company’s belief that completion of both tranches of the proposed $15 million financing are concluded in a timely manner, the Company will have sufficient funds to meet its financial obligations over the next 12 months. 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 press release 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 press release including, but not limited to, the risk the Company is not able to complete all or a portion of its proposed $15 million financing in a timely manner (or at all) or on the terms it presently contemplates; the risks and other factors described under “Business Risks and Uncertainties” in the MD&A and under “Risk Factors” in the Company’s Annual Information Form, which is available for viewing on SEDAR at www.sedar.com.
In addition, note that information relating to reserves is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that the reserves described can be economically produced in the future.
With respect to forward-looking information contained in this press release, the Company has made assumptions regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which the Company operates; the timely receipt of any required regulatory approvals; the ability of the Company to fully complete its proposed $15 million financing in a timely manner (or at all) or on the terms it presently contemplates; the ability of the Company to continue as a going concern without the loss or forfeiture of any assets; 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 of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company 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 the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; 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 press release 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 forwardlooking information contained in this press release are expressly qualified by this cautionary statement.
The forward-looking information contained herein is made as of the date of this press release 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.