May-05-2010
Press Releases
2010 Press Releases
Crown Point Releases Second Quarter 2010 Results
May 5, 2010
VANCOUVER, BRITISH COLUMBIA, May 05, 2010 (MARKETWIRE via COMTEX) — Crown Point Ventures Ltd. (CWV) (“Crown Point”, “We” or “the Company”) during the second quarter 2010 continued its evolution as an Argentina based oil and gas producer, developer and explorer. Highlights of the second quarter were:
— Sustained oil production at El Valle, in the Golfo San Jorge Basin;
— Development of a new six well drilling program to follow up success offirst three wells and target higher production and cash flow;
— Sale of the majority of Canadian Daly producing properties for $707,000,to concentrate on Argentina operations;
— First financing since February 2007 initiated to fund the new wellprogram and raise up to $6 million.
Crown Point’s second quarter unaudited consolidated financial statements and Management Discussion and Analysis of Operations were SEDAR filed on April 29, 2010, and can also be found on the Company website at www.crownpointenergy.com.
In the second quarter, Crown Point’s technical team continued to identify areas of operation and equipment configurations to optimize production in El Valle and prepare for the drilling program. The Company has identified some equipment and materials which were not available during the last drilling and completion program and is either importing the needed equipment or is stockpiling the materials required for new drilling program. This should make our drilling and completion operations more time efficient and cost effective.
Crown Point has two producing oil wells (EVX-21 and EVX-19) and a currently shut in natural gas well (EVX-20) in the El Valle Field in Golfo San Jorge Basin in Argentina. A drilling inventory of eight new exploration targets has been developed, in addition to an expansion of the development drilling locations. Murray McCartney, CEO, commented, “Our second quarter work on evaluating the 3-D seismic program and applying different processing and interpretive techniques has assisted us in generating the drilling locations for our next six wells to be drilled and beyond that, has helped us to expand our inventory of development drilling locations. When we complete our current financing, we plan to start drilling three wells in May, and will sequentially drill, complete, equip and evaluate the wells. Our next wells should follow roughly three to six months after. We look forward to reporting our progress on these wells to the market.”
Successful results on any or all of the wells will result in new development and exploitation drilling targets being defined, adding to our present drilling inventory.
Sale of Daly Assets
Subsequent to the quarter end, Crown Point sold the majority of its interest in the Daly area of Manitoba. Total proceeds from the sale were $707,000. The reserve report dated August 30, 2009 gave the assets a value of $397,000. This sale allows Crown Point to focus on its operations in Argentina.
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 the Company’s operations and asset base.
ABOUT CROWN POINT VENTURES
Crown Point Ventures Ltd. is an oil and gas development company with production in Argentina. Two of Crown Point’s three wells drilled in the San Jorge Basin (Santa Cruz, Argentina) are currently in production, with a three well program planned in 2010 to expand production and follow up discovery data gained in the first drilling program.
Crown Point Ventures Ltd. is a junior Canadian oil and gas exploration company that trades on the TSX Venture Exchange under the symbols “CWV. Crown Point has 23,952,958 common shares, and 1,585,000 options (at an average price of $0.61 per share) issued and outstanding. Crown Point has various working interests in oil and gas properties in Argentina and Canada.
Forward Looking Information
Advisory
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.
Contact:
Crown Point Ventures Ltd.
Murray McCartney
President & CEO
(403) 232-1150
m.mccartney@crownpointenergy.com
Crown Point Ventures Ltd.
Arthur J.G. Madden
Vice-President & CFO
(403) 232-1150
amadden@crownpointenergy.com
Crown Point Ventures Ltd.
Flora Wood
Manager Investor Relations
(416) 304-0032
fwood@crownpointenergy.com
www.crownpointenergy.com
SOURCE: Crown Point Ventures Ltd.
For further information concerning the Company, please contact us directly.