Press Releases Crown Point Announces 2012 Drilling Plans Across Four Key Concessions Focused on Conventional Oil Development & Exploration Alongside the Prove-up of Unconventional Vaca Muerta Shale
2011 Press Releases
November 07, 2011
TSX-V: CWV: Crown Point Ventures Ltd. (“Crown Point” or the “Company”) is pleased to announce the ramp up of our drilling plans across four key concessions covering 288,000 net acres in Argentina’s two most prolific basins – the Golfo San Jorge and Neuquén Basins.
El Valle – San Jorge Basin
In January 2012 Crown Point plans to commence a steady drilling campaign with 10 to 24 wells to be drilled at El Valle over the next 24 months. The first 3-4 wells in this program will be focused on the drilling of oil development wells with multiple-zones in the Cañadón Seco and Caleta Olivia formations. A portion of this drilling program will also focus on exploration targets in the south west area of El Valle which shows promising leads on seismic.
Our current net production is approximately 600 bbls of oil per day with another estimated 400 bbls of oil per day behind pipe. Crown Point anticipates having 200 bbls of this behind pipe productive capacity on stream in the first quarter of 2012 with the balance coming on after facility enhancements and field electrification is completed.This will allow for the installation of some high volume progressive cavity pumps on some of the new wells.
Cañadón Ramirez – San Jorge Basin
Once the drilling of the prior El Valle program is completed the Company plans to move the drilling rig to its 100% interest Cañadón Ramirez Concession and drill a 2-3 well development program. Cañadón Ramirez is located on the North-West side of the San Jorge Basin. The wells are to be drilled on a 3-d seismically defined western extension of the Mata Magallanes Oeste Field. This pool extension had a confirming well bore drilled on it in 2008. Cañadón Ramirez is immediately to the West of Mata Magallanes Oeste Field which has produced 5.4 million barrels of oil. This concession, like many areas within Argentina, has easy access to existing infrastructure allowing production from this area to have a quick cycle time to market.
Laguna De Piedra – Neuquén Basin
At Laguna de Piedra, Crown Point plans on drilling one to two high impact exploration wells in the Neuquén Basin starting in the second quarter of 2012. Laguna de Piedra’s primary targets are 3-D seismically defined targets focused on light oil objectives in the Punta Rosada and Quintuco Sandstones. Laguna De Piedra is located in the south flank of Neuquén basin close to the Flor de Roca field and South East of the Estación Fernandez Oro field.
Cerro Los Leones – Neuquén Basin
At Cerro Los Leones located in the North Neuquén Basin, Crown Point anticipates receiving the required environmental permits in the near term and plans to commence the shooting of its planned 3-D and 2-D programs shortly after receiving these permits in the first quarter of 2012. Drilling on various high impact conventional plays and the unconventional Vaca Muerta shale is expected to commence late in the second quarter of 2012 following interpretation and processing of the seismic data.
Initially, Crown Point plans to kick-off a two to four well drilling program targeting the Neuquén group, Vaca Muerta formation and the igneous intrusive rocks contained in the base of the Vaca Muerta on the western area of the concession and then drill an additional two to four wells targeting the Loncoche, Neuquén group, and Huitrin formation resource type plays located on the North East area of the concession. With multiple play types at Cerro Los Leones, Crown Point has the ability to ramp up its exploration and development programs post drilling results of these initial wells.
As part of the planned drilling Crown Point plans to evaluate the Unconventional Vaca Muerta shale via perforation and fracture stimulation operations on vertical wellbores initially. Following these initial prove-up operations, Crown will look to drill additional vertical and horizontal tests in the Vaca Muerta shale depending on the successful confirmation of key reservoir characteristics of the play.
Existing production in close proximity to Cerro Los Leones provides an understanding of the concessions exploration potential. The productive fields range from the Tertiary (Loncoche) to the Precuyo, with strong productive history of the Igneous intrusive in the Vaca Muerta immediately to the south of the concession in the Valle de Rio Grande oil pools. These pools have produced 89 million barrels of oil (current production is 5,200 bbls. of oil per day), from the igneous intrusives in the base of the Vaca Muerta. Other nearby fields include Llancanelo, the largest heavy oil accumulation in Argentina , as well as the Cerro Fortunoso field producing 3,250 bbls per day of oil, and Cajón de los Caballos with production of 483 bbls per day of oil.
Crown Point has a very active year planned for 2012, starting with a low risk ramp up of oil production and cash flow from our operations in the San Jorge Basin. Later in the first half Crown Point will commence the drilling of some high impact wells in Laguna de Piedra and Cerro Los Leones which have, based on production history from analogous nearby fields, the potential to deliver strong rates of production and reserves.
President & CEO
Ph: (403) 232-1150
Crown Point Energy Inc.
Arthur J.G. Madden
Vice-President & CFO
Ph: (403) 232-1150
Crown Point Energy Inc.
About Crown Point
Crown Point Ventures Ltd. is an oil and gas exploration and development company with production in Argentina. The Companies exploration and development 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.
For further information concerning the Company, please contact us directly.