Press Releases Crown Point Releases First Quarter Results for the Period ended November 30, 2010
2011 Press Releases
February 1st, 2011
TSX-V: CWV: Crown Point Ventures Ltd. (“Crown Point”, “We” or “the Company”) during the First Quarter for the period ended November 30, 2010 continued its evolution as a pure Argentina oil and gas company. The Company continues to focus its business plan of being an aggregator and developer of oil and natural gas properties in Argentina. During the past calendar year the Company experienced many highlights and accomplished many of its goals. Some of the highlights are:
During July and August of 2010, Crown Point continued with the development of the El Valle field by drilling and completing three successful new oil wells. These wells have proved up a new development drilling program for 2011. Crown Point has a 100% drilling success rate at El Valle.
New Drilling Program
The Company is preparing to commence a new 3-5 well development drilling program at El Valle in mid February 2011.
Cerro los Leones
Crown Point acquired a 49.9% interest in the Cerro los Leones 307,000 acre exploration concession in the Neuquén basin in the Province of Mendoza. A combination program of 3-D and 2-D seismic program is planned to be shot in the first half of 2011. This block has numerous different play types on it ranging from the potential for light oil pools on the western portion, to medium and heavy oil type resource pools on the eastern side.
Subsequent to year end, the Company acquired a 100% interest in the 6,318 acre Cañadon Ramirez exploitation concession located in the Province of Chubut on the North West side of the San Jorge Basin. With this acquisition came an additional 25% interest in the 241,000 acre Laguna de Piedra exploration concession bringing Crown Points’ total interest to 50% (120,500 net acres).
During the past year Crown Point completed three financings by way of private placement, as follows:
During the first half of calendar 2010 the Company issued a total of 5,924,850 units at a price of $0.75 per unit, for gross proceeds of $4,443,638. Each unit consisted of one common share and one-half (1/2) of a Series A warrant, with each whole Series A warrant entitling the holder to purchase one additional common share at a price of $1.00 for two years from the date of issuance (subject to potential earlier expiry as disclosed in the Company’s April 26, 2010 News Release). Upon the exercise of any Series A warrants, the Company will issue to that holder that number of Series B warrants equal to the number of Series A warrants exercised, with each Series B warrant to entitle the holder to purchase one additional common share at a price of $1.50 for three years from the date of issuance of the Series A warrants (subject again to potential earlier expiry as disclosed in the Company’s April 26, 2010 News Release).
In December 2010, two further financings were completed, primarily with institutional investors, and served to bring a lot of attention and awarenes to Crown Point and its Argentina-focused business plan:
(a) a 7,716,594 common share “bought deal” and a concurrent non-brokered issuance of 34,000 common shares, each at a price of $1.55 per share, for gross proceeds of $12,013,421; and
(b) a second issuance of 1,417,323 common shares at a price of $1.55 per share, for gross proceeds of $2,196,851.
We are pleased with the early indications of the hydrocarbon resource potential on our Argentina land holdings and feel confident that with the recent financings that we will be able to move quickly to initiate the exploitation of some of the very attractive opportunities present on our lands.
Crown Point is at a turning point as we continue the development drilling program at El Valle and commence our exploration and exploitation efforts at Cerro los Leones and Cañadon Ramirez. I would like to thank all of our staff for the tremendous efforts they have made; I would also like to thank our shareholders for their continued support through the early growth phases of the Company.
Crown Point’s first quarter unaudited consolidated financial statements and Management Discussion and Analysis of Operations were SEDAR filed on January 28, 2011 and posted to the Company website at www.crownpointenergy.com.
On behalf of the Board of Directors of Crown Point Ventures Ltd.
Murray D. McCartney
President & CEO
ABOUT CROWN POINT VENTURES
Crown Point Ventures Ltd. is a junior oil and gas exploration and development company whose shares trade on the TSX Venture Exchange under the symbol “CWV”. The Company’s business plan is to be an aggregator of and exploiter of oil and natural gas properties in Argentina.
For inquiries please contact
President & CEO
Crown Point Ventures Ltd.
Ph: (403) 232-1150
Arthur J.G. Madden
Vice-President & CFO
Crown Point Ventures Ltd.
Ph: (403) 232-1150
This news release contains certain forward-looking statements, which are based on numerous assumptions including but limited to (i) drilling success; (ii) production; (iii) future capital expenditures; and (iv) cash flow from operating activities. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.
Certain information regarding Crown Point set forth in this document, including management’s assessment of Crown Point’s future plans and operations, number, type and timing of wells to be drilled, the planning and development of certain prospects, production estimates, and expected production growth may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Crown Point’s control, including without limitation, 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, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and 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. Crown Point’s 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, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
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 the SEDAR website (www.sedar.com) 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.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 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.
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 further information concerning the Company, please contact us directly.