May-29-2012
Press Releases
2012 Press Releases
Crown Point Announces Completion of Acquisition of Antrim Argentina S.A.
May 29, 2012
Crown Point Ventures Ltd. (“Crown Point”) (TSX-V: CWV), an Argentine focused exploration and production company, is pleased to announce the completion of Crown Point’s previously announced acquisition of Antrim Energy Inc.’s (“Antrim”) wholly owned subsidiary, Antrim Argentina S.A. (“Antrim Argentina”) pursuant to an arrangement under the Business Corporations Act (Alberta) (the “Arrangement”).
Under the terms of the Arrangement, Antrim received a cash payment of approximately CDN$9.25 million and was issued 35,761,307 shares of Crown Point (the “Crown Point Arrangement Shares”). The Crown Point Arrangement Shares will be distributed by Antrim to shareholders of record on June 4, 2012 on a pro rata basis. Crown Point now has approximately 104.5 million shares outstanding, approximately 66% of which are held by Crown Point’s existing shareholders and approximately 34% of which will be held by Antrim’s shareholders following Antrim’s distribution of such shares to its shareholders.
The principal assets of Antrim Argentina are three oil and gas focused producing concessions in the Tierra del Fuego portion of the Argentine Austral basin (the “TDF Assets”) and an operated 50.1% interest in the Cerro de Los Leones Exploration Concession. Antrim’s TDF Assets had average daily sales volumes during the quarter ended March 31, 2012 of approximately 1,424 boe/d comprised of 225 bbls of oil per day, 6.8 mmcf of natural gas per day and 66 bbls of natural gas liquids per day. Crown Point also acquired Antrim Argentina’s working capital surplus of approximately CDN$9 million.
Crown Point’s average daily sales volumes during the quarter ended February 29, 2012 were approximately 335 boe/d, with the result that Crown Point’s consolidated average daily sales volumes are now approximately 1,759 boe/d, weighted approximately 35% to crude oil and natural gas liquids and approximately 65% to natural gas. In accordance with the terms of the Arrangement, Crown Point has also appointed Dr. Brian Moss, Antrim’s Executive Vice President, Latin America and a member of Antrim’s board of directors, to Crown Point’s board of directors.
Since the end of the first quarter, a fracture stimulation program of five wells on the Las Violetas Concession on the TDF Asset has been under way and management is expecting increases in production arising from that program. A six well development drilling program is also planned for the last half of 2012 on this Concession. Crown Point is in the midst of a seven well program on its El Valle Concession, of which three wells have been drilled with one well completed and ready to commence production, a second well undergoing completion operations and a third well being cased as an oil well. Management is expecting this drilling program to start to have a positive impact on El Valle production levels as the new wells are placed on production.
Until recently, sales of oil and gas from the TGF Assets to the Argentina mainland generated value-added tax (“VAT”) of 21%, which Antrim Argentina was able to retain due to favorable tax laws pertaining to Tierra del Fuego. Antrim reported VAT income of US$2.2 million in 2011 and US$2.1 million in 2010. However, on May 16, 2012 the Federal Government of Argentina issued a decree removing the tax free status of the Province of Tierra del Fuego (the “TDF Policy Change”). Over the short to medium term, the TDF Policy Change is expected to have a modestly negative impact on the combined company’s income, although the TDF Policy Change is not expected to have a material impact on the combined company’s reserves. The TDF Policy Change’s impact on Crown Point may be mitigated to some degree by ongoing local efforts to have it reversed or revised, potential reductions in the conditions and terms of the TDF Assets Concession extensions currently being negotiated with the Tierra del Fuego government, the continuation of the trend in rising natural gas prices in Argentina, and/or an increase in the proportion of Crown Point’s production that is derived from natural gas production from the TDF Assets, which attracts the higher “Gas Plus” pricing. However, no assurances can be provided by Crown Point that any of these mitigating factors will materialize, or that if they do, that they will offset the effects of the TDF Policy Change in total, in part or at all.
For inquiries please contact
Murray McCartney Arthur J.G. Madden
President & CEO Vice-President & CFO
Ph: (403) 232-1150 Ph: (403) 232-1150
Crown Point Ventures Ltd.
m.mccartney@crownpointenergy.com
amadden@crownpointenergy.com
Website:www.crownpointenergy.com
About Crown Point
Crown Point Ventures Ltd. is an international oil and gas exploration and development Company headquartered in Calgary Canada, incorporated in Canada, trading on the TSX Venture Exchange and operating in South America. Crown Point’s exploration and development activities are focused in the Golfo San Jorge and Neuquén basins in Argentina. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a basis for future growth.
Advisory
Certain information regarding Crown Point set forth in this document, including our proposed acquisition of Antrim Argentina S.A., may constitute forward-looking statements under applicable securities laws. The forward-looking information is based on certain key expectations and assumptions made by Crown Point, including our assumption that all of the conditions precedent to closing such acquisition will be satisfied and that the acquisition will ultimately close. Although Crown Point believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Crown Point can give no assurances that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. There are risks inherent in the nature of the proposed acquisition, including failure to obtain the required shareholder, court, regulatory and other third party approvals. There are no assurances the acquisition will be completed. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. 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. 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.
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.
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.