Press Releases Crown Point Cases First of Three Wells as a Potential Oil Well in the El Valle Field of the Golfo San Jorge Basin in Argentina
2010 Press Releases
July 13, 2010
CALGARY, ALBERTA, Jul 13, 2010 (MARKETWIRE via COMTEX) — Crown Point Ventures Ltd. (CWV) (the “Company”) advises that it has completed the drilling of the first of three onshore oil wells to be drilled in sequence at El Valle in the Golfo San Jorge basin of Argentina.
The EV-22 well has been logged, evaluated, and cased as a potential oil well. Logs and drilling samples have identified five separate potential hydrocarbon bearing zones in the well bore. Most significant are two zones in the Caleta Olivia. The well encountered two separate three metre showings in the Caleta Olivia which, if productive, will produce light to medium quality oil (25-30 degrees API gravity). We anticipate that this well will be completed and be production tested in early August. The well also intersected three potentially productive zones in the Canadon Seco formation, which if productive, will produce oil in the heavy-medium range of oil quality (16-22 degrees API gravity) oil.
Crown Point is currently drilling the second well and anticipates that it will finish drilling next weekend. Once this well has been drilled and logged, Crown Point plans to bring in a service rig to complete the first well and to sequentially complete the two later wells, if warranted.
Funding for this program derives from the recently completed non-brokered private placement, which raised gross proceeds of approximately $4.4 million, and closed in May and early June 2010.
El Valle has three distinct productive sedimentary formations, which, in order of surface to deepest, are the Canadon Seco, Caleta Olivia and Mina el Carmen. Each of these formations may contain multiple discrete hydrocarbon bearing zones. Typically, the Canadon Seco oil produces medium grade oil (API gravity that ranges from 16-22 degrees), while the Caleta Olivia and Mina el Carmen produce light oil (API gravity of approx. 30 degrees).
Management estimates a timeframe of another 21 – 40 days to drill, complete, test and equip the three wells depending on the complexity of the completion program for each well.
Crown Point continues to evaluate other growth opportunities in Argentina. The successful conclusion of these would add a new dimension to Crown Point in Argentina and expand the depth, breadth and size of our operations and asset base.
About Crown Point
Crown Point Ventures Ltd. is an oil and gas exploration, development and production company with production in Argentina. The Company’s exploration, development and production activities are focused in the Golfo San Jorge and Neuquen Basins in Argentina.
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.
Crown Point Ventures Ltd.
President & CEO
Crown Point Ventures Ltd.
Arthur J.G. Madden
Vice-President & CFO
Crown Point Ventures Ltd.
Manager Investor Relations
SOURCE: Crown Point Ventures Ltd.
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