Jun-16-2010
Press Releases
2010 Press Releases
Crown Point Prepares for Upcoming Drill Program in Golfo San Jorge Basin, Argentina
June 16, 2010
CALGARY, ALBERTA, Jun 16, 2010 (MARKETWIRE via COMTEX) — Crown Point Ventures Ltd. (“Crown Point” or “the Company”) (CWV) expects to commence an oil targeted development drilling program during the week of June 21, 2010. Crown Point plans to drill three wells at its El Valle oilfield in the Golfo San Jorge Basin, Argentina. 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 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 that ranges from 16-22 degrees), while the Caleta Olivia and Mina el Carmen produce light oil (API of approximately 30 degrees).
The objectives of the three wells are as follows:
EV-22: (TD anticipated to be 1050m subsurface) is a twin of a well drilled in the 1969 which was abandoned despite displaying excellent petro-physical properties on logs in the sandstone layers of the middle Canadon Seco and Caleta Olivia formations. Another well in close proximity (drilled in the early 1960’s) produced light oil from the Caleta Olivia formation at rates up to 650 barrels of oil per day for a period of approximately 6 months, after which time the well was abandoned when the casing collapsed due to poor cementing of the production casing.
EV-23: (TD anticipated to be 1150m subsurface) has three primary geological objectives; the first (in order of drilling depth) is medium grade oil in the discrete sandstone layers in the upper and middle sections of the Canadon Seco formation. The second objective is light oil in sandstone layers in the middle Caleta Olivia formation and the third is targeting light oil in tuffaceous sandstones in the Mina el Carmen formation.
EV-24: (TD anticipated to be 1080m subsurface) Like EV-23, we are targeting the upper and middle Canadon Seco and the middle Caleta Olivia formations, with a secondary target in the tuffaceous layers of the Mina el Carmen formation. This well is located 200 metres from previously drilled well EV-20, which encountered numerous prospective zones and a natural gas cap during the 2008 drilling program.
Management estimates that it will take between 35 and 50 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.
Private Placement Update
Crown Point also reports that it has received TSX-Venture approval for one final closing of the previously announced non-brokered private placement (see press release dated April 26 2010), in order to accommodate two purchasers whose funds were advanced but whose subscription agreement were delayed due to administrative error. This final closing consisted of the sale of 68,000 units at $0.75 per unit, for gross proceeds of $51,000.00. Each unit consisted of one common share and one-half (1/2) of one Series A warrant, each whole Series A warrant exercisable at $1.00 until June 14, 2012 (subject to potential earlier expiry as disclosed in Crown Point’s April 26, 2010 press release), with each Series A warrant to be replaced upon exercise with a Series B warrant, details of which were also disclosed in the April 26, 2010 press release. All of the securities issued in connection with this closing are subject to a hold period in Canada until October 15, 2010.
About Crown Point
Crown Point Ventures Ltd. is an oil and gas exploration, development and production company with production in argentina. The companies exploration, development and production activities are focused in the Golfo San Jorge and Neuquen Basins in Argentina.
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
SOURCE: Crown Point Ventures Ltd.
For further information concerning the Company, please contact us directly.