{"id":1725,"date":"2018-08-30T11:53:53","date_gmt":"2018-08-30T15:53:53","guid":{"rendered":"https:\/\/crownpointenergy.com\/?p=1725"},"modified":"2018-08-30T11:53:53","modified_gmt":"2018-08-30T15:53:53","slug":"aug-30-2018","status":"publish","type":"post","link":"https:\/\/crownpointenergy.com\/?p=1725","title":{"rendered":"Aug-30-2018"},"content":{"rendered":"<p><a href=\"http:\/\/crownpointenergy.com\/wp-content\/uploads\/2018\/08\/CWV-Q2-2018-News-Release-final.pdf\"><strong>Crown Point Announces Operating and Financial Results\u00a0<\/strong><strong>for the Three and Six Months Ended June 30, 2018<\/strong><\/a><\/p>\n<p><strong>TSX-V:\u00a0 CWV: Crown Point Energy Inc. (\u201cCrown Point\u201d, <\/strong>the<strong> \u201cCompany\u201d <\/strong>or &#8220;<strong>we<\/strong>&#8220;<strong>)<\/strong> today announced its operating and financial results for the three and six months ended June 30, 2018.<\/p>\n<p>Copies of the Company\u2019s unaudited condensed interim consolidated financial statements and management\u2019s discussion and analysis (\u201c<strong>MD&amp;A<\/strong>\u201d) filings for the three and six months ended June 30, 2018 are being filed with Canadian securities regulatory authorities and will be made available under the Company\u2019s profile at <a href=\"http:\/\/www.sedar.com\">www.sedar.com<\/a> and on the Company\u2019s website at <a href=\"https:\/\/crownpointenergy.com\">www.crownpointenergy.com<\/a>. All dollar figures are expressed in United States dollars (&#8220;<strong>USD<\/strong>&#8220;) unless otherwise stated.<\/p>\n<p>In the following discussion, the three and the six months ended June 30, 2018 may be referred to as \u201cQ2 2018\u201d and \u201cthe June 2018 period\u201d, respectively, and the comparative three and six months ended June 30, 2017 may be referred to as \u201cQ2 2017\u201d and \u201cthe June 2017 period\u201d, respectively.<\/p>\n<p><strong>Highlights<\/strong><\/p>\n<p>During Q2 2018, the Company:<\/p>\n<ul>\n<li>Closed a rights offering pursuant to which the Company issued 40,000,000 common shares at a price of $0.30 per share for gross proceeds of $12 million;<\/li>\n<li>Obtained $11.5 million of new loans of which $7.5 million was repaid in June 2018;<\/li>\n<li>Closed the acquisition (the \u201c<strong>Acquisition<\/strong>\u201d) of all of the issued and outstanding shares of Apco Austral S.A. (\u201c<strong>Apco Austral<\/strong>\u201d) for $28.4 million of cash consideration plus up to $9 million of contingent royalty payments during a ten-year period commencing on January 1, 2018. Following the completion of the Acquisition, the Company holds a 51.56% interest in its Tierra del Fuego (\u201c<strong>TDF<\/strong>\u201d) concessions;<\/li>\n<li>Reported average daily production volumes of 1,846 BOE per day, up 33% from 1,385 BOE per day in Q2 2017;<\/li>\n<li>Earned $7.16 million of oil and gas revenue, up 79% from $4.01 million earned in Q2 2017;<\/li>\n<li>Received an average of $68.49 per bbl for its oil compared to $47.81 per bbl earned in Q2 2017, which represents a 43% increase;<\/li>\n<li>Sold gas at an average price of $4.68 per mcf as compared to $4.40 per mcf in Q2 2017, which represents an 6% increase;<\/li>\n<li>Reported an operating netback of $24.73 per BOE, up 74% from $14.25 per BOE in Q2 2017; and<\/li>\n<li>Drilled and cased SM a-1002, the first of two appraisal wells at the San Martin oil discovery in TDF.<\/li>\n<\/ul>\n<p>Subsequent to Q2 2018, the Company:<\/p>\n<ul>\n<li>Obtained $2.5 million of short-term working capital loans;<\/li>\n<li>Completed and placed on production SM a-1002;<\/li>\n<li>Drilled and cased SM a-1003, the second San Martin appraisal well, as a potential oil well; and<\/li>\n<li>Drilled and cased TDF exploration well LR x-1001 as a potential oil and gas well.<\/li>\n<\/ul>\n<p><strong>Operational update<\/strong><\/p>\n<p><strong>Tierra del Fuego Concession (&#8220;TDF&#8221;)<\/strong><\/p>\n<p><u>Rio Cullen and La Angostura Concessions<\/u><\/p>\n<p>During Q2 2018, the San Martin discovery well (SM x-1001), located on the La Angostura Concession, produced a total of 28,732 m3 (180,718 bbls) of 35 API gravity oil (gross) plus 86 m3 (540 bbls) of basic sediment and water. Daily oil production averaged 315 m3 (1,981 barrels) per day (net 162 m3 (1,022 bbls) per day). Total associated natural gas production during Q2 2018 was 985,724 m3 (34,811 mcf) (gross) or an average of 12,322 m3 (435 mcf) of gas per day (gross) (net 6,353 m3 (224 mcf) per day).\u00a0 Produced oil is trucked to the Company\u2019s TDF facilities for storage and sale.\u00a0 Associated gas is captured, compressed and injected into a YPF gas line approximately 1.5 km east of the SM x-1001 well site for transportation and sale at YPF\u2019s TDF San Sebastian gas plant.<\/p>\n<p>Two appraisal wells have been drilled on the San Martin structure. The first well (SM a-1002), located 0.8 km to the south of SM x-1001, was placed on production on August 15, 2018.\u00a0 Completion and testing of the second well (SM a-1003), located 0.9 km north and west of SM x-1001, commenced in August 2018 and is ongoing.\u00a0 See the Company\u2019s August 29, 2018 news release \u201cCrown Point Provides Update on Tierra del Fuego Operations\u201d for additional information.<\/p>\n<p><u>Las Violetas Concession<\/u><\/p>\n<p>During August 2018, the Company and its joint venture partners drilled and cased one exploration well (LR x-1001) as a potential Springhill formation oil and gas discovery.\u00a0 LR x-1001 is located on a structure approximately 6 km to the south and east of the Rio Chico gas processing facilities. Completion of this well will be undertaken in Q3 2018.<\/p>\n<p>Completion and testing operations on LFE-1004, the last well in the Company&#8217;s 2014-2015 drilling program, are scheduled during the second half of 2018. This well did not encounter the Springhill formation objective but was subsequently cased after recording oil and gas shows in the underlying Tob\u00edfera formation.<\/p>\n<p><strong>Cerro de Los Leones Concession <\/strong><\/p>\n<p>The Company has a 100% working interest in the 100,907 acre area covered by the Cerro de Los Leones (\u201c<strong>CLL<\/strong>\u201d) Concession Permit (the \u201c<strong>Permit<\/strong>\u201d), located in the northern portion of the Neuqu\u00e9n Basin in the Province of Mendoza, Argentina. The Company has received final environmental approval to acquire 214 km<sup>2<\/sup> of 3-D seismic. Seismic operations commenced in July 2018 and are expected to be completed in September 2018.<\/p>\n<p><strong>Outlook<\/strong><\/p>\n<p>The Company\u2019s capital spending for the last half of 2018 is budgeted at $12.9 million comprised of $8.6 million in TDF and $4.3 million in CLL based on expenditures for the following activities:<\/p>\n<ul>\n<li>Acquisition of 214 km<sup>2<\/sup> of 3-D seismic on the CLL Permit to partially fulfill the work commitment for the second exploration period;<\/li>\n<li>Completion and testing of the Tob\u00edfera formation in LFE-1004 which was drilled, cased and left standing in 2015;<\/li>\n<li>Completion and testing of the SM a-1002 appraisal well on the San Martin structure in the La Angostura concession;<\/li>\n<li>Drilling, completion and testing of the SM a-1003 appraisal well on the San Martin structure in the La Angostura concession;<\/li>\n<li>Drilling of one exploration well (LR x-1001) in the Las Violetas concession to test a Springhill structure located to the south and east of the Rio Chico gas pool; and<\/li>\n<li>Improvements to facilities in TDF.<\/li>\n<\/ul>\n<p>The Company expects to receive an average of $64.61 per bbl of crude oil and $4.36 per mcf of natural gas during the remaining six months of 2018.<\/p>\n<p><strong>SUMMARY OF FINANCIAL INFORMATION<\/strong><\/p>\n<table style=\"height: 492px;\" width=\"630\">\n<tbody>\n<tr>\n<td width=\"360\">(expressed in $, except shares outstanding)<\/td>\n<td width=\"96\">\n<p style=\"text-align: right;\"><strong>June 30<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>2018<\/strong><\/p>\n<\/td>\n<td width=\"96\">\n<p style=\"text-align: right;\"><strong>December 31<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>2017<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"360\">Working capital<\/td>\n<td style=\"text-align: right;\" width=\"96\">(7,626,412)<\/td>\n<td style=\"text-align: right;\" width=\"96\">685,653<\/td>\n<\/tr>\n<tr>\n<td width=\"360\">Exploration and evaluation assets<\/td>\n<td style=\"text-align: right;\" width=\"96\">6,064,699<\/td>\n<td style=\"text-align: right;\" width=\"96\">6,013,387<\/td>\n<\/tr>\n<tr>\n<td width=\"360\">Property and equipment<\/td>\n<td style=\"text-align: right;\" width=\"96\">48,467,718<\/td>\n<td style=\"text-align: right;\" width=\"96\">23,198,458<\/td>\n<\/tr>\n<tr>\n<td width=\"360\">Total assets<\/td>\n<td style=\"text-align: right;\" width=\"96\">68,984,644<\/td>\n<td style=\"text-align: right;\" width=\"96\">40,856,370<\/td>\n<\/tr>\n<tr>\n<td width=\"360\">Share capital<\/td>\n<td style=\"text-align: right;\" width=\"96\">131,745,987<\/td>\n<td style=\"text-align: right;\" width=\"96\">119,982,644<\/td>\n<\/tr>\n<tr>\n<td width=\"360\">Total common shares outstanding<\/td>\n<td style=\"text-align: right;\" width=\"96\">72,903,038<\/td>\n<td style=\"text-align: right;\" width=\"96\">32,903,038<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"height: 1078px;\" width=\"680\">\n<tbody>\n<tr>\n<td width=\"265\">(expressed in $, except shares outstanding)<\/td>\n<td colspan=\"2\" width=\"191\">\n<p style=\"text-align: right;\"><strong>Three months ended June 30<\/strong><\/p>\n<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"174\"><strong>Six months ended June 30<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"265\"><strong>\u00a0<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"93\"><strong>2018<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"98\"><strong>2017<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"87\"><strong>2018<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"87\"><strong>2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Oil and gas revenue<\/td>\n<td style=\"text-align: right;\" width=\"93\">7,158,826<\/td>\n<td style=\"text-align: right;\" width=\"98\">4,009,250<\/td>\n<td style=\"text-align: right;\" width=\"87\">12,700,272<\/td>\n<td style=\"text-align: right;\" width=\"87\">6,782,424<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Loss before taxes<\/td>\n<td style=\"text-align: right;\" width=\"93\">(2,819,514)<\/td>\n<td style=\"text-align: right;\" width=\"98\">(722,338)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(1,910,370)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(1,797,795)<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Adjusted income (loss) before taxes <sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"93\">1,618,736<\/td>\n<td style=\"text-align: right;\" width=\"98\">(722,338)<\/td>\n<td style=\"text-align: right;\" width=\"87\">2,551,879<\/td>\n<td style=\"text-align: right;\" width=\"87\">(1,797,795)<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Net loss<\/td>\n<td style=\"text-align: right;\" width=\"93\">(5,381,589)<\/td>\n<td style=\"text-align: right;\" width=\"98\">(1,038,338)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(5,108,810)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(1,605,795)<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Net loss per share <sup>(1)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"93\">(0.11)<\/td>\n<td style=\"text-align: right;\" width=\"98\">(0.06)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(0.12)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(0.10)<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Adjusted net loss <sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"93\">(943,339)<\/td>\n<td style=\"text-align: right;\" width=\"98\">(1,038,338)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(646,561)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(1,605,795)<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Adjusted net loss per share <sup>(1)(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"93\">(0.02)<\/td>\n<td style=\"text-align: right;\" width=\"98\">(0.06)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(0.02)<\/td>\n<td style=\"text-align: right;\" width=\"87\">(0.10)<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Cash flow from operations<\/td>\n<td style=\"text-align: right;\" width=\"93\">2,933,565<\/td>\n<td style=\"text-align: right;\" width=\"98\">173,954<\/td>\n<td style=\"text-align: right;\" width=\"87\">4,972,808<\/td>\n<td style=\"text-align: right;\" width=\"87\">808,078<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Cash flow per share \u2013 operations <sup>(1)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"93\">0.06<\/td>\n<td style=\"text-align: right;\" width=\"98\">0.01<\/td>\n<td style=\"text-align: right;\" width=\"87\">0.12<\/td>\n<td style=\"text-align: right;\" width=\"87\">0.05<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Funds flow from operations <sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"93\">(2,643,304)<\/td>\n<td style=\"text-align: right;\" width=\"98\">851,097<\/td>\n<td style=\"text-align: right;\" width=\"87\">(918,669)<\/td>\n<td style=\"text-align: right;\" width=\"87\">1,222,128<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Funds flow per share \u2013 operations <sup>(1)(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"93\">(0.05)<\/td>\n<td style=\"text-align: right;\" width=\"98\">0.05<\/td>\n<td style=\"text-align: right;\" width=\"87\">(0.02)<\/td>\n<td style=\"text-align: right;\" width=\"87\">0.07<\/td>\n<\/tr>\n<tr>\n<td width=\"265\">Weighted average number of shares<\/td>\n<td style=\"text-align: right;\" width=\"93\">49,606,335<\/td>\n<td style=\"text-align: right;\" width=\"98\">16,451,522<\/td>\n<td style=\"text-align: right;\" width=\"87\">41,300,828<\/td>\n<td style=\"text-align: right;\" width=\"87\">16,451,522<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><sup>(1)<\/sup> All per share figures are based on the basic weighted average number of shares outstanding in the period.\u00a0 The effect of options is anti-dilutive.\u00a0 Per share amounts may not add due to rounding.<\/p>\n<p><sup>(2)<\/sup> \u201cAdjusted income (loss) before taxes\u201d, \u201cAdjusted net loss\u201d, Adjusted net loss per share\u201d, &#8220;Funds flow from operations&#8221; and &#8220;Funds flow per share &#8211; operations&#8221; are non-IFRS measures.\u00a0 See &#8220;Non-IFRS Measures&#8221; in the &#8220;Advisory&#8221; section of this press release and in the Company\u2019s June 30, 2018 MD&amp;A for a reconciliation of these measures to the nearest comparable IFRS measures.<\/p>\n<p><strong>TDF Sales Volumes<\/strong><\/p>\n<table style=\"height: 235px;\" width=\"643\">\n<tbody>\n<tr>\n<td width=\"258\"><strong>\u00a0<\/strong><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"168\"><strong>Three months ended<\/strong><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"180\"><strong>Six months ended<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"258\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"168\"><strong>June 30<\/strong><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"180\"><strong>June 30<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"258\"><\/td>\n<td style=\"text-align: right;\" width=\"84\"><strong>2018<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"84\"><strong>2017<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"90\"><strong>2018<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"90\"><strong>2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"258\">Light oil bbls per day<\/td>\n<td style=\"text-align: right;\" width=\"84\">669<\/td>\n<td style=\"text-align: right;\" width=\"84\">358<\/td>\n<td style=\"text-align: right;\" width=\"90\">659<\/td>\n<td style=\"text-align: right;\" width=\"90\">226<\/td>\n<\/tr>\n<tr>\n<td width=\"258\">NGL bbls per day<\/td>\n<td style=\"text-align: right;\" width=\"84\">14<\/td>\n<td style=\"text-align: right;\" width=\"84\">17<\/td>\n<td style=\"text-align: right;\" width=\"90\">14<\/td>\n<td style=\"text-align: right;\" width=\"90\">26<\/td>\n<\/tr>\n<tr>\n<td width=\"258\">Natural gas mcf per day<\/td>\n<td style=\"text-align: right;\" width=\"84\">6,981<\/td>\n<td style=\"text-align: right;\" width=\"84\">6,063<\/td>\n<td style=\"text-align: right;\" width=\"90\">6,115<\/td>\n<td style=\"text-align: right;\" width=\"90\">6,242<\/td>\n<\/tr>\n<tr>\n<td width=\"258\">BOE per day <sup>(1)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"84\">1,846<\/td>\n<td style=\"text-align: right;\" width=\"84\">1,385<\/td>\n<td style=\"text-align: right;\" width=\"90\">1,692<\/td>\n<td style=\"text-align: right;\" width=\"90\">1,293<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><sup>(1)<\/sup>\u00a0 Total sales volumes for Q2 2018 and the June 2018 period are 167,994 BOE and 306,236 BOE, respectively (Q2 2017 and the June 2017 period \u2013 126,042 BOE and 234,039 BOE, respectively).\u00a0 Total sales volumes for Q2 2018 and the June 2018 period include 26,790 BOE of Apco Austral volumes for the 23-day period following the completion of the Acquisition.<\/p>\n<p><strong>TDF Operating Netback<\/strong><\/p>\n<p>The Company\u2019s operating netback was higher in the 2018 periods as compared to the 2017 periods due primarily to an increase in oil and gas revenue per BOE.<\/p>\n<table style=\"height: 265px;\" width=\"633\">\n<tbody>\n<tr>\n<td width=\"258\"><strong>\u00a0<\/strong><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"168\"><strong>Three months ended<\/strong><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"180\"><strong>Six months ended<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"258\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"168\"><strong>June 30<\/strong><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"180\"><strong>June 30<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"258\"><\/td>\n<td style=\"text-align: right;\" width=\"84\"><strong>2018<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"84\"><strong>2017<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"90\"><strong>2018<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"90\"><strong>2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"258\"><u>Per BOE<\/u><\/td>\n<td width=\"84\"><\/td>\n<td width=\"84\"><\/td>\n<td width=\"90\"><\/td>\n<td width=\"90\"><\/td>\n<\/tr>\n<tr>\n<td width=\"258\">Oil and gas revenue ($)<\/td>\n<td style=\"text-align: right;\" width=\"84\">42.61<\/td>\n<td style=\"text-align: right;\" width=\"84\">31.81<\/td>\n<td style=\"text-align: right;\" width=\"90\">41.47<\/td>\n<td style=\"text-align: right;\" width=\"90\">28.98<\/td>\n<\/tr>\n<tr>\n<td width=\"258\">Royalties ($)<\/td>\n<td style=\"text-align: right;\" width=\"84\">(6.90)<\/td>\n<td style=\"text-align: right;\" width=\"84\">(5.70)<\/td>\n<td style=\"text-align: right;\" width=\"90\">(6.63)<\/td>\n<td style=\"text-align: right;\" width=\"90\">(5.25)<\/td>\n<\/tr>\n<tr>\n<td width=\"258\">Operating costs ($)<\/td>\n<td style=\"text-align: right;\" width=\"84\">(10.98)<\/td>\n<td style=\"text-align: right;\" width=\"84\">(11.86)<\/td>\n<td style=\"text-align: right;\" width=\"90\">(11.29)<\/td>\n<td style=\"text-align: right;\" width=\"90\">(11.58)<\/td>\n<\/tr>\n<tr>\n<td width=\"258\">Operating netback <sup>(1)<\/sup> ($)<\/td>\n<td style=\"text-align: right;\" width=\"84\">24.73<\/td>\n<td style=\"text-align: right;\" width=\"84\">14.25<\/td>\n<td style=\"text-align: right;\" width=\"90\">23.55<\/td>\n<td style=\"text-align: right;\" width=\"90\">12.15<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><sup>(1)<\/sup> \u00a0&#8220;Operating netback&#8221; is a non-IFRS measure.\u00a0 See &#8220;Non-IFRS Measures&#8221;.<\/p>\n<p>For inquiries please contact:<\/p>\n<table style=\"height: 149px;\" width=\"547\">\n<tbody>\n<tr>\n<td>Brian Moss<\/td>\n<td>Marisa Tormakh<\/td>\n<\/tr>\n<tr>\n<td>President &amp; CEO<\/td>\n<td>Vice-President &amp; CFO<\/td>\n<\/tr>\n<tr>\n<td>Ph: (403) 232-1150<\/td>\n<td>Ph: (403) 232-1150<\/td>\n<\/tr>\n<tr>\n<td>Crown Point Energy Inc.<\/td>\n<td>Crown Point Energy Inc.<\/td>\n<\/tr>\n<tr>\n<td><a href=\"mailto:bmoss@crownpointenergy.com\">bmoss@crownpointenergy.com<\/a><\/td>\n<td><a href=\"mailto:amadden@crownpointenergy.com\">mtormakh@crownpointenergy.com<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong><em>About Crown Point<\/em><\/strong><\/p>\n<p>Crown Point Energy Inc. 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\u2019s exploration and development activities are focused in two of the largest producing basins in Argentina, the Austral basin in the province of Tierra del Fuego and the Neuqu\u00e9n basin, in the province of Mendoza. 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.<\/p>\n<p><strong><em>Advisory<\/em><\/strong><\/p>\n<p><em><u>Non-IFRS Measures<\/u><\/em><em>: <\/em><em>Non-IFRS measures do not have any standardized meanings prescribed by IFRS and may not be comparable with the calculation of similar measures used by other entities.\u00a0 Non-IFRS measures should not be considered alternatives to, or more meaningful than, measures determined in accordance with IFRS as indicators of the Company\u2019s performance.<\/em><\/p>\n<p><em>This press release contains the terms \u201cadjusted income (loss) before taxes\u201d, \u201cadjusted net loss\u201d and \u201cadjusted net loss per share\u201d which management considers to be key measures of performance before the effect of certain expenses that, although classified as operating activities in accordance with IFRS, are not expected to recur with the same magnitude or frequency and\/or for which there are no similar expenses in the comparative periods.\u00a0 For a reconciliation of adjusted income (loss) before taxes, adjusted net loss and adjusted net loss per share to the most directly comparable measures calculated in accordance with IFRS, see the Company&#8217;s MD&amp;A.<\/em><\/p>\n<p><em>This press release contains the terms \u201cfunds flow from (used by) operations\u201d and &#8220;funds flow per share \u2013 operations&#8221; which should not be considered alternatives to, or more meaningful than, cash flow from (used by) operations and cash flow per share \u2013 operations as determined in accordance with IFRS as an indicator of the Company\u2019s performance.\u00a0 Management uses funds flow from (used by) operations to analyze operating performance and considers funds flow from (used by) operations to be a key measure as it demonstrates the Company\u2019s ability to generate cash necessary to fund future capital investment.\u00a0 Funds flow per share \u2013 operations is calculated using the basic and diluted weighted average number of shares for the period consistent with the calculations of earnings per share.\u00a0 For a reconciliation of funds flow from (used by) operations to cash flow from (used by) operations, which is the most directly comparable measure calculated in accordance with IFRS, see the Company&#8217;s MD&amp;A.<\/em><\/p>\n<p><em>This press release also contains other industry benchmarks and terms, including \u201coperating netbacks\u201d (calculated on a per unit basis as oil, natural gas and NGL revenues less royalties, transportation and operating costs), which is a non-IFRS measure.\u00a0 See &#8220;TDF Operating Netback&#8221; for the calculation of operating netback.\u00a0 Management believes this measure is a useful supplemental measure of the Company\u2019s profitability relative to commodity prices.\u00a0 Readers are cautioned, however, that operating netbacks should not be construed as an alternative to other terms such as net income as determined in accordance with IFRS as measures of performance. \u00a0Crown Point\u2019s method of calculating this measure may differ from other companies, and accordingly, may not be comparable to similar measures used by other companies.<\/em><\/p>\n<p><em><u>Abbreviations and BOE Presentation<\/u><\/em><em>: &#8220;3-D&#8221; means three dimensional. &#8220;API&#8221; means <\/em><em>American Petroleum Institute gravity, being an indication of the specific gravity of crude oil measured on the API gravity scale.\u00a0 &#8220;bbl&#8221; means barrel.<\/em><em> &#8220;bbls&#8221; means barrels.\u00a0 <\/em><em>\u00a0&#8220;BOE&#8221; means barrels of oil equivalent. &#8220;km&#8221; means kilometres; &#8220;km<sup>2<\/sup>&#8221; means square kilometres; &#8220;m3&#8221; means cubic metres. \u201cmcf\u201d means thousand cubic feet. &#8220;NGL&#8221; means natural gas liquids.\u00a0 <\/em><em>&#8220;Q1&#8221; means the three months ended March 31.\u00a0 &#8220;Q2&#8221; means the three months ended June 30.\u00a0 &#8220;Q3&#8221; means the three months ended September 30.\u00a0 &#8220;Q4&#8221; means the three months ended December 31. <\/em><em>&#8220;YPF&#8221; means <\/em><em>Yacimientos Petrol\u00edferos Fiscales S.A.<\/em> <em>All BOE conversions in this press release are derived by converting natural gas to oil in the ratio of six mcf of gas to one bbl of oil.\u00a0 BOE may be misleading, particularly if used in isolation.\u00a0 A BOE conversion ratio of six mcf of gas to one bbl of oil (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.\u00a0 Given that the value ratio based on the current price of crude oil as compared to natural gas in Argentina is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.<\/em><\/p>\n<p><em><u>Forward-looking Information<\/u><\/em><em>: <\/em><em>This document contains forward-looking information.\u00a0 This information relates to future events and the Company\u2019s future performance.\u00a0 All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words \u201cmay\u201d, \u201cwill\u201d, \u201cshould\u201d, \u201ccould\u201d, \u201cexpect\u201d, \u201cplan\u201d, \u201cintend\u201d, \u201canticipate\u201d, \u201cbelieve\u201d, \u201cestimate\u201d, \u201cpropose\u201d, \u201cpredict\u201d, \u201cpotential\u201d, \u201ccontinue\u201d, \u201caim\u201d, <\/em><em>&#8220;budget&#8221; <\/em><em>or the negative of these terms or other comparable terminology are generally intended to identify forward-looking information.\u00a0 Such information represents the Company\u2019s internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance.\u00a0 This information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.\u00a0 In\u00a0addition, this document may contain forward-looking information attributed to third party industry sources.\u00a0 Crown Point believes that the expectations reflected in this forward-looking information are reasonable; however, undue reliance should not be placed on this forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. This press release contains forward-looking information concerning, among other things, the following: under &#8220;<\/em><em>Highlights&#8221; and &#8220;<\/em><em>Operational Update \u2013 Tierra del Fuego Concession&#8221;,<\/em><em> our belief that SM a-1002 has the potential to be a Tob\u00edfera formation oil well, our belief that SM a-1003 has the potential to be a Tob\u00edfera formation oil well, our belief that LR x-1001 has the potential to be a Springhill formation oil and gas discovery well,<\/em><em> the operations that the Company intends to conduct on certain of its TDF assets and the expected timing of certain operations; under &#8220;Operational Update \u2013 Cerro de Los Leones Concession&#8221;, the operations that the Company intends to conduct on certain of its CLL assets and the expected timing of certain operations; under &#8220;Outlook&#8221;, our estimated capital expenditures for <\/em><em>the last half of<\/em><em> 2018, the allocation of such capital expenditures between our TDF and CLL concessions, the anticipated elements of this capital program, and the average crude oil and natural gas prices that the Company expects to receive for the <\/em><em>six<\/em><em> months ended December 31, 2018; under &#8220;<\/em><em>About Crown Point&#8221;, all elements<\/em><em> of the <\/em><em>Company\u2019s business strategy<\/em><em>. The reader is cautioned that such information, although considered reasonable by the Company, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided in this document as a result of numerous known and unknown risks and uncertainties and other factors. A number of risks and other factors could cause actual results to differ materially from those expressed in the forward-looking information contained in this document including, but not limited to, the following: the risks and other factors described under \u201cBusiness Risks and Uncertainties\u201d in our MD&amp;A for the three <\/em><em>and six <\/em><em>months ended <\/em><em>June 30<\/em><em>, 2018 and under \u201cRisk Factors\u201d in the Company\u2019s most recently filed Annual Information Form, which is available for viewing on SEDAR at <a href=\"http:\/\/www.sedar.com\">www.sedar.com<\/a>. In addition, note that information relating to reserves <\/em><em>and resources <\/em><em>is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions that the reserves <\/em><em>and resources <\/em><em>described can be economically produced in the future. With respect to forward-looking information contained in this document, the Company has made assumptions regarding, among other things: that <\/em><em>the arbitration launched by Roch S.A. in connection with the Acquisition of Apco Austral will not expose the Company to any losses; the impact of inflation rates in Argentina and the devaluation of the Argentine peso against the USD on the Company; the amount of royalties that the Company will have to pay under the royal agreement entered in to in connection with the Acquisition; the performance of Apco Austral and its underlying assets<\/em><em>; the impact of increasing competition; the general stability of the economic and political environment in which the Company operates, including operating under a consistent regulatory and legal framework in Argentina; future oil, natural gas and NGL prices (including the effects of governmental incentive programs thereon); the timely receipt of any required regulatory approvals; the ability of the Company to continue as a going concern without the loss of any assets; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the costs of obtaining equipment and personnel to complete the Company\u2019s capital expenditure program; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms when and if needed; the ability of the Company to service its debt repayments when required; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration activities; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products.\u00a0 Management of Crown Point has included the above summary of assumptions and risks related to forward-looking information included in this document in order to provide investors with a more complete perspective on the Company\u2019s future operations.\u00a0 Readers are cautioned that this information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive.\u00a0 The forward-looking information contained in this document are expressly qualified by this cautionary statement. The forward-looking information contained herein is made as of the date of this document and the Company disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws.<\/em><\/p>\n<p><strong><em>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.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crown Point Announces Operating and Financial Results\u00a0for the Three and Six Months Ended June 30, 2018<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[26,8],"tags":[],"_links":{"self":[{"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/posts\/1725"}],"collection":[{"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1725"}],"version-history":[{"count":4,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/posts\/1725\/revisions"}],"predecessor-version":[{"id":1730,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/posts\/1725\/revisions\/1730"}],"wp:attachment":[{"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}