{"id":1820,"date":"2019-04-01T10:26:29","date_gmt":"2019-04-01T14:26:29","guid":{"rendered":"https:\/\/crownpointenergy.com\/?p=1820"},"modified":"2019-04-01T10:29:56","modified_gmt":"2019-04-01T14:29:56","slug":"april-1-2019","status":"publish","type":"post","link":"https:\/\/crownpointenergy.com\/?p=1820","title":{"rendered":"April-1-2019"},"content":{"rendered":"\n<p><strong><a href=\"http:\/\/crownpointenergy.com\/wp-content\/uploads\/2019\/04\/Crown-Point-Q4-2018-News-Release.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Crown Point Announces Operating and Financial Results for the Three Months and Year Ended December 31, 2018 (opens in a new tab)\">Crown Point Announces Operating and Financial Results for the Three Months and Year Ended December 31, 2018<\/a><\/strong><\/p>\n\n\n\n<p><strong>TSX-V:&nbsp; CWV: Crown Point Energy Inc. (\u201cCrown Point\u201d, <\/strong>the<strong> \u201cCompany\u201d <\/strong>or&#8221;<strong>we<\/strong>&#8220;<strong>)<\/strong> today announced its operating and\nfinancial results for the three months and year ended December 31, 2018.&nbsp; <\/p>\n\n\n\n<p>Copies of the Company\u2019s audited consolidated\nfinancial statements and management\u2019s discussion and analysis (\u201c<strong>MD&amp;A<\/strong>\u201d) filings for the year ended December\n31, 2018 are being filed with Canadian securities regulatory authorities and\nwill be made available under the Company\u2019s profile at <a href=\"http:\/\/www.sedar.com\">www.sedar.com<\/a> and on the\nCompany\u2019s website at <a href=\"https:\/\/crownpointenergy.com\">www.crownpointenergy.com<\/a>. <strong>All dollar figures are expressed in United\nStates dollars (&#8220;USD&#8221;) unless otherwise stated. <\/strong><\/p>\n\n\n\n<p>In the following discussion, the three months\nand year ended December 31, 2018 may be referred to as \u201cQ4 2018\u201d and \u201cYE 2018\u201d\nor \u201c2018\u201d, respectively, and the comparative three months and year ended\nDecember 31, 2017 may be referred to as \u201cQ4 2017\u201d and \u201cYE 2017\u201d or \u201c2017\u201d,\nrespectively.<\/p>\n\n\n\n<p><strong>Highlights<\/strong><\/p>\n\n\n\n<p>During Q4\n2018, the Company:<\/p>\n\n\n\n<ul><li>Reported net\ncash flows from operating activities of $7.7 million;<\/li><li>Earned $19.4\nmillion of oil and gas revenue, up 520% from $3.1 million earned in Q4 2017;<\/li><li>Reported\naverage daily sales volumes of 4,915 BOE per day, up 314%\nfrom 1,187 BOE per day in Q4 2017; reported production volumes during the\nquarter averaged 4,046 BOE per day, up 178% from 1,457 BOE per day in Q4 2017;<\/li><li>Received an\naverage of $55.59 per bbl for its oil compared to $47.50 per bbl earned in Q4\n2017, which represents a 17% increase;<\/li><li>Reported an\noperating netback of $20.90 per BOE, up 84% from $11.36 per BOE in Q4 2017; <\/li><li>Placed\nLFE-1004, the last well of the Company&#8217;s 2014-2015 drilling program, on\nproduction; and<\/li><li>Obtained\nand repaid $2.3 million (net) of short-term working capital loans.<\/li><\/ul>\n\n\n\n<p>Subsequent\nto Q4 2018, the Company:<\/p>\n\n\n\n<ul><li>Repaid\nall bank debt consisting of a $1.7 million short-term working capital loan; <\/li><li>Fracture\nstimulated and tied-in SM a-1003; and<\/li><li>Received\nformal approval from the Province of Mendoza extending the January 22, 2019\ndeadline to complete its outstanding Phase Two work obligations in Cerro de Los\nLeones to October 22, 2019.<\/li><\/ul>\n\n\n\n<p><strong>Operational\nupdate<\/strong><\/p>\n\n\n\n<p><strong>Tierra del Fuego\nConcession (&#8220;TDF&#8221;)<\/strong><\/p>\n\n\n\n<p>Rio Cullen and La Angostura Concessions<\/p>\n\n\n\n<p>During\nQ4 2018, the San Martin discovery well (SM x-1001), located on the La Angostura\nconcession, produced a total of 184,435 bbls of 35 API gravity oil (gross) plus\n566 bbls of basic sediment and water. Daily oil production averaged 2,025 bbls\nper day (net 1,033 bbls per day). Total associated natural gas production\nduring Q4 2018 was 63.1 mmcf (gross) or an average of 693 mcf of gas per day\n(gross) (net 353 mcf per day).<\/p>\n\n\n\n<p>The\nSM a-1002 appraisal well produced a total of 189,429 bbls of 35 API gravity oil\n(gross) plus 572 bbls of basic sediment and water. Daily oil production\naveraged 2,075 bbls per day (net 1,058 bbls per day). Total associated natural\ngas production during Q4 2018 was 64.8 mmcf (gross) or an average of 705 mcf of\ngas per day (gross) (net 364 mcf per day).&nbsp;\nThe natural gas produced from SM a-1002 was flared during Q4 2018 but\nwas subsequently tied in during February 2019.<\/p>\n\n\n\n<p>A\nlower Tob\u00edfera zone was fracture stimulated on the SM a-1003 appraisal well in\nDecember 2018, subsequently recovering an average of 96 bbls of oil per day (960\nbbls of oil in total) plus 64 barrels of water per day (639 bbls of water in\ntotal) during a swab test over 14 days. The upper Tob\u00edfera zone was fracture\nstimulated in February 2019 recovering minor amounts of oil. SM a-1003 was\nplaced on pump on March 14, 2019 with co-mingled production from the upper and\nlower Tob\u00edfera zones and averaged 125 barrels of oil per day (net 63 bbls per\nday) plus 57 bbls of water per day (net 29 bbls per day) over the following 10\ndays.<\/p>\n\n\n\n<p>Las Violetas Concession<\/p>\n\n\n\n<p>LFE-1004,\nthe last well in the Company&#8217;s 2014-2015 drilling program, was completed as a Tob\u00edfera\ngas well and placed on production in October 2018.&nbsp; <\/p>\n\n\n\n<p><strong>Cerro de Los Leones Concession <\/strong><\/p>\n\n\n\n<p>The Company\nhas a 100% working interest in the 100,907 acre area covered by the Cerro de\nLos Leones (\u201c<strong>CLL<\/strong>\u201d) Concession Permit,\nlocated in the northern portion of the Neuqu\u00e9n Basin in the Province of\nMendoza, Argentina. The Company acquired 214 km2 of 3-D seismic in September\n2018. Processed data was delivered for interpretation in February 2019.<\/p>\n\n\n\n<p>In\nMarch, Crown Point received formal approval from the Province of Mendoza\nextending the January 22, 2019 deadline to complete its outstanding Phase Two\nwork obligation in CLL (the drilling of one exploration well) to October 22,\n2019 and accepted an additional work obligation to drill a second exploration\nwell before the new deadline.<\/p>\n\n\n\n<p><strong>Outlook<\/strong><\/p>\n\n\n\n<p>The\nCompany\u2019s capital expenditure budget for 2019 is $17.3 million comprised of\n$13.6 million in TDF and $3.7 million in CLL based on expenditures for the\nfollowing proposed activities:<\/p>\n\n\n\n<ul><li>Drill two\nappraisal wells on San Martin structure in the La Angostura concession;<\/li><li>Three well\nworkovers; one in the La Angostura concession, one in the Rio Cullen concession\nand one in the Las Violetas concession;<\/li><li>Install oil\ntreatment and water handling facilities at San Martin to improve production\ncapacity and reduce trucking costs;<\/li><li>Other\nimprovements to facilities in TDF; and<\/li><li>Drill two\nexploration wells in CLL.<\/li><\/ul>\n\n\n\n<p>The\n$13.6 million budget for TDF is based on the Company\u2019s share of the budget\nproposed by the UTE\u00b4s operator.&nbsp; The\nCompany is currently evaluating the budget proposal. <strong><br>\n<\/strong><\/p>\n\n\n\n<p><strong>SUMMARY OF FINANCIAL INFORMATION<\/strong><\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  (expressed\n  in $, except shares outstanding)\n  <\/td><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <strong>2018<\/strong>\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <strong>2017<\/strong>\n  <\/td><\/tr><tr><td>\n  Working\n  capital (deficit)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  (1,562,992)\n  <\/td><td>\n  685,653\n  <\/td><\/tr><tr><td>\n  Exploration and evaluation assets\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  9,032,994\n  <\/td><td>\n  6,013,387\n  <\/td><\/tr><tr><td>\n  Property and equipment\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  54,750,958\n  <\/td><td>\n  23,198,458\n  <\/td><\/tr><tr><td>\n  Total assets\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  85,128,625\n  <\/td><td>\n  40,856,370\n  <\/td><\/tr><tr><td>\n  Share capital\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  131,745,215\n  <\/td><td>\n  119,982,644\n  <\/td><\/tr><tr><td>\n  Total common shares outstanding \n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  72,903,038\n  <\/td><td>\n  32,903,038\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  (expressed in $,\n  except shares outstanding)\n  <\/td><td>\n  <strong>Three months ended<\/strong>\n  <\/td><td>\n  <strong>Year ended<\/strong>\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  <strong>2018<\/strong>\n  <\/td><td>\n  <strong>2017<\/strong>\n  <\/td><td>\n  <strong>2018<\/strong>\n  <\/td><td>\n  <strong>2017<\/strong>\n  <\/td><\/tr><tr><td>\n  Oil and gas revenue \n  <\/td><td>\n  19,406,279\n  <\/td><td>\n  3,132,145\n  <\/td><td>\n  48,667,242\n  <\/td><td>\n  12,986,821\n  <\/td><\/tr><tr><td>\n  Income (loss) before taxes\n  <\/td><td>\n  2,623,965\n  <\/td><td>\n  (562,802)\n  <\/td><td>\n  10,027,122\n  <\/td><td>\n  (414,034)\n  <\/td><\/tr><tr><td>\n  Net income (loss)\n  <\/td><td>\n  2,567,130\n  <\/td><td>\n  (743,709)\n  <\/td><td>\n  5,965,837\n  <\/td><td>\n  (1,545,265)\n  <\/td><\/tr><tr><td>\n  Net income (loss) per share <sup>(1)<\/sup> \n  <\/td><td>\n  0.04\n  <\/td><td>\n  (0.03)\n  <\/td><td>\n  0.10\n  <\/td><td>\n  (0.08)\n  <\/td><\/tr><tr><td>\n  Cash flow from operations \n  <\/td><td>\n  7,713,567\n  <\/td><td>\n  2,294,650\n  <\/td><td>\n  21,635,531\n  <\/td><td>\n  4,733,323\n  <\/td><\/tr><tr><td>\n  Cash flow per share \u2013 operations <sup>(1)<\/sup>\n  <\/td><td>\n  0.11\n  <\/td><td>\n  0.08\n  <\/td><td>\n  0.38\n  <\/td><td>\n  0.24\n  <\/td><\/tr><tr><td>\n  Adjusted funds flow from operations <sup>(2)<\/sup> \n  <\/td><td>\n  5,305,263\n  <\/td><td>\n  1,985,649\n  <\/td><td>\n  19,220,789\n  <\/td><td>\n  4,312,984\n  <\/td><\/tr><tr><td>\n  Adjusted funds flow per share \u2013\n  operations <sup>(1)(2)<\/sup>\n  <\/td><td>\n  0.07\n  <\/td><td>\n  0.07\n  <\/td><td>\n  0.34\n  <\/td><td>\n  0.22\n  <\/td><\/tr><tr><td>\n  Weighted average number of\n  shares\n  <\/td><td>\n  72,903,038\n  <\/td><td>\n  28,790,164\n  <\/td><td>\n  58,209,170\n  <\/td><td>\n  19,561,536\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><sup>(1)<\/sup> All per share\nfigures are based on the basic weighted average number of shares outstanding in\nthe period.&nbsp; The effect of options is\nanti-dilutive.&nbsp; Per share amounts may not\nadd due to rounding.<\/p>\n\n\n\n<p><sup>(2)<\/sup> &#8220;Adjusted funds\nflow from operations&#8221; and &#8220;Adjusted funds flow per share &#8211; operations&#8221;\nare non-IFRS measures.&nbsp; See &#8220;Non-IFRS\nMeasures&#8221; in the &#8220;Advisory&#8221; section of this press release and in\nthe Company\u2019s December 31, 2018 MD&amp;A for a reconciliation of these measures\nto the nearest comparable IFRS measures.<\/p>\n\n\n\n<p><strong>TDF Sales Volumes<\/strong> <\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>Three months ended<\/strong>\n  <\/td><td>\n  <strong>Year ended<\/strong>\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>2018<\/strong>\n  <\/td><td>\n  <strong>2017<\/strong>\n  <\/td><td>\n  <strong>2018<\/strong>\n  <\/td><td>\n  <strong>2017<\/strong>\n  <\/td><\/tr><tr><td>\n  Light oil bbls per day \n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  2,986\n  <\/td><td>\n  240\n  <\/td><td>\n  1,579\n  <\/td><td>\n  202\n  <\/td><\/tr><tr><td>\n  NGL bbls per day \n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  20\n  <\/td><td>\n  15\n  <\/td><td>\n  16\n  <\/td><td>\n  22\n  <\/td><\/tr><tr><td>\n  Natural gas mcf per day \n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  11,457\n  <\/td><td>\n  5,593\n  <\/td><td>\n  8,449\n  <\/td><td>\n  6,028\n  <\/td><\/tr><tr><td>\n  BOE per day \n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  4,915\n  <\/td><td>\n  1,187\n  <\/td><td>\n  3,002\n  <\/td><td>\n  1,228\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><strong>TDF Operating Netback<\/strong><\/p>\n\n\n\n<p>The Company\u2019s operating\nnetback was higher in the 2018 periods as compared to the 2017 periods due\nprimarily to an increase in oil and gas revenue per BOE.<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>Three months ended<\/strong>\n  <\/td><td>\n  <strong>Year ended<\/strong>\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <\/td><td>\n  <strong>December 31<\/strong>\n  <\/td><\/tr><tr><td>\n  Per BOE\n  <\/td><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>2018<\/strong>\n  <\/td><td>\n  <strong>2017<\/strong>\n  <\/td><td>\n  <strong>2018<\/strong>\n  <\/td><td>\n  <strong>2017<\/strong>\n  <\/td><\/tr><tr><td>\n  Oil and gas revenue ($)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  42.91\n  <\/td><td>\n  28.67\n  <\/td><td>\n  44.41\n  <\/td><td>\n  28.97\n  <\/td><\/tr><tr><td>\n  Export tax ($)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  (4.03)\n  <\/td><td>\n  \u2013\n  <\/td><td>\n  (1.71)\n  <\/td><td>\n  \u2013\n  <\/td><\/tr><tr><td>\n  Royalties ($)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  (7.00)\n  <\/td><td>\n  (5.40)\n  <\/td><td>\n  (7.37)\n  <\/td><td>\n  (5.37)\n  <\/td><\/tr><tr><td>\n  Operating costs ($)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  (10.98)\n  <\/td><td>\n  (11.91)\n  <\/td><td>\n  (10.46)\n  <\/td><td>\n  (11.77)\n  <\/td><\/tr><tr><td>\n  Operating netback <sup>(1)<\/sup>\n  ($)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  20.90\n  <\/td><td>\n  11.36\n  <\/td><td>\n  24.87\n  <\/td><td>\n  11.83\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>&nbsp;<sup>(1)<\/sup> &nbsp;&#8220;Operating netback&#8221; is a non-IFRS\nmeasure.&nbsp; See &#8220;Non-IFRS Measures&#8221;.<\/p>\n\n\n\n<p><strong>RESERVES<\/strong><\/p>\n\n\n\n<p>The Company\u2019s reserve information for the year\nended December 31, 2018 was disclosed in the Company\u2019s press release dated\nMarch 6, 2019. The Company\u2019s Annual Information Form and National Instrument\n51-101 Standards of Disclosure for Oil and Gas Activities filings for the year ended\nDecember 31, 2018 will be filed with Canadian securities regulatory authorities\nin due course and will be made available under the Company\u2019s profile at <a href=\"http:\/\/www.sedar.com\">www.sedar.com<\/a> and on the\nCompany\u2019s website at <a href=\"https:\/\/crownpointenergy.com\">www.crownpointenergy.com<\/a>.<\/p>\n\n\n\n<p>For inquiries please\ncontact:<\/p>\n\n\n\n<p>Brian Moss&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marisa\nTormakh<\/p>\n\n\n\n<p>President\n&amp; CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vice-President\n&amp; CFO<\/p>\n\n\n\n<p>Ph: (403) 232-1150&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ph:\n(403) 232-1150<\/p>\n\n\n\n<p>Crown Point Energy Inc.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Crown Point Energy Inc.<\/p>\n\n\n\n<p><a href=\"mailto:bmoss@crownpointenergy.com\">bmoss@crownpointenergy.com<\/a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a href=\"mailto:amadden@crownpointenergy.com\">mtormakh@crownpointenergy.com<\/a> <\/p>\n\n\n\n<p><strong><em>About Crown Point<\/em><\/strong><\/p>\n\n\n\n<p>Crown Point\nEnergy Inc. is an international oil and gas exploration and development company\nheadquartered in Calgary, Canada, incorporated in Canada, trading on the TSX\nVenture Exchange and operating in South America. Crown Point\u2019s exploration and\ndevelopment activities are focused in two of the largest producing basins in\nArgentina, the Austral basin in the province of Tierra del Fuego and the\nNeuqu\u00e9n basin, in the province of Mendoza. Crown Point has a strategy that\nfocuses on establishing a portfolio of producing properties, plus production\nenhancement and exploration opportunities to provide a basis for future growth.<\/p>\n\n\n\n<p><strong><em>Advisory<\/em><\/strong><\/p>\n\n\n\n<p><em>Non-IFRS\nMeasures<\/em><em>: <\/em><em>Non-IFRS measures do not\nhave any standardized meanings prescribed by IFRS and may not be comparable\nwith the calculation of similar measures used by other entities.&nbsp; Non-IFRS measures should not be considered\nalternatives to, or more meaningful than, measures determined in accordance\nwith IFRS as indicators of the Company\u2019s performance.<\/em><\/p>\n\n\n\n<p><em>This press release contains the terms \u201cadjusted\nfunds flow from operations\u201d and &#8220;adjusted funds flow per share \u2013\noperations&#8221; which should not be considered alternatives to, or more meaningful\nthan, cash flow from operations and cash flow per share \u2013 operations as\ndetermined in accordance with IFRS as an indicator of the Company\u2019s\nperformance.&nbsp; Management uses adjusted\nfunds flow from operations to analyze operating performance and considers adjusted\nfunds flow from operations to be a key measure as it demonstrates the Company\u2019s\nability to generate cash necessary to fund future capital investment.&nbsp; Adjusted funds flow per share \u2013 operations is\ncalculated using the basic and diluted weighted average number of shares for\nthe period consistent with the calculations of earnings per share.&nbsp; For a reconciliation of adjusted funds flow\nfrom operations to cash flow from operations, which is the most directly\ncomparable measure calculated in accordance with IFRS, see the Company&#8217;s\nMD&amp;A.<\/em><\/p>\n\n\n\n<p><em>This\npress release also contains other industry benchmarks and terms, including\n\u201coperating netbacks\u201d (calculated on a per unit basis as oil, natural gas and\nNGL revenues less royalties, transportation and operating costs), which is a\nnon-IFRS measure.&nbsp; See &#8220;TDF\nOperating Netback&#8221; for the calculation of operating netback.&nbsp; Management believes this measure is a useful\nsupplemental measure of the Company\u2019s profitability relative to commodity\nprices.&nbsp; Readers are cautioned, however,\nthat operating netbacks should not be construed as an alternative to other\nterms such as net income as determined in accordance with IFRS as measures of\nperformance.&nbsp; Crown Point\u2019s method of\ncalculating this measure may differ from other companies, and accordingly, may\nnot be comparable to similar measures used by other companies.<\/em><\/p>\n\n\n\n<p><em>Abbreviations and BOE Presentation<\/em><em>: &#8220;3-D&#8221; means three dimensional,\n&#8220;API&#8221; means <\/em><em>American\nPetroleum Institute gravity, being an indication of the specific gravity of\ncrude oil measured on the API gravity scale, &#8220;bbl&#8221; means barrel,<\/em><em> &#8220;bbls&#8221; means barrels,\n<\/em><em>&#8220;BOE&#8221; means barrels of oil equivalent, &nbsp;&#8220;km<sup>2<\/sup>&#8221; means square\nkilometres; &#8220;m3&#8221; means cubic metres, &nbsp;\u201cmcf\u201d means thousand cubic feet, &#8220;mmcf&#8221;\nmeans millions cubic feet, &#8220;NGL&#8221; means natural gas liquids,<\/em><em> And &#8220;Q4&#8221; means the\nthree months ended December 31<\/em><em>.<\/em><em> <\/em><em>All BOE conversions in this press release are\nderived by converting natural gas to oil in the ratio of six mcf of gas to one\nbbl of oil.&nbsp; BOE may be misleading,\nparticularly if used in isolation.&nbsp; A BOE\nconversion ratio of six mcf of gas to one bbl of oil (6 mcf: 1 bbl) is based on\nan energy equivalency conversion method primarily applicable at the burner tip\nand does not represent a value equivalency at the wellhead.&nbsp; Given that the value ratio based on the\ncurrent price of crude oil as compared to natural gas in Argentina is\nsignificantly different from the energy equivalency conversion ratio of 6:1,\nutilizing a conversion on a 6:1 basis is misleading as an indication of value.<\/em><em><\/em><\/p>\n\n\n\n<p><em>Forward-looking Information<\/em><em>: <\/em><em>This document\ncontains forward-looking information.&nbsp;\nThis information relates to future events and the Company\u2019s future\nperformance.&nbsp; All information and\nstatements contained herein that are not clearly historical in nature\nconstitute forward-looking information, and the words \u201cmay\u201d, \u201cwill\u201d, \u201cshould\u201d,\n\u201ccould\u201d, \u201cexpect\u201d, \u201cplan\u201d, \u201cintend\u201d, \u201canticipate\u201d, \u201cbelieve\u201d, \u201cestimate\u201d,\n\u201cpropose\u201d, \u201cpredict\u201d, \u201cpotential\u201d, \u201ccontinue\u201d, \u201caim\u201d, <\/em><em>&#8220;budget&#8221; <\/em><em>or the negative of\nthese terms or other comparable terminology are generally intended to identify\nforward-looking information.&nbsp; Such\ninformation represents the Company\u2019s internal projections, estimates,\nexpectations, beliefs, plans, objectives, assumptions, intentions or statements\nabout future events or performance.&nbsp; This\ninformation involves known or unknown risks, uncertainties and other factors\nthat may cause actual results or events to differ materially from those\nanticipated in such forward-looking information.&nbsp; In&nbsp;addition, this document may contain\nforward-looking information attributed to third party industry sources.&nbsp; Crown Point believes that the expectations\nreflected in this forward-looking information are reasonable; however, undue\nreliance should not be placed on this forward-looking information, as there can\nbe no assurance that the plans, intentions or expectations upon which they are\nbased will occur. This press release contains forward-looking information\nconcerning, among other things, the following: under &#8220;Outlook&#8221;, our\nestimated capital expenditures for fiscal 2019, the allocation of such capital\nexpenditures between our TDF and CLL concessions, the anticipated elements of\nthis capital program, and the Company\u2019s continued evaluation of its fiscal 2019\nbudget proposal; under &#8220;<\/em><em>About Crown Point&#8221;,\nall elements<\/em><em> of the <\/em><em>Company\u2019s\nbusiness strategy<\/em><em>. The reader is cautioned that such\ninformation, although considered reasonable by the Company, may prove to be\nincorrect. Actual results achieved during the forecast period will vary from\nthe information provided in this document as a result of numerous known and\nunknown risks and uncertainties and other factors. A number of risks and other\nfactors could cause actual results to differ materially from those expressed in\nthe forward-looking information contained in this document including, but not\nlimited to, the following: the risks and other factors described under\n\u201cBusiness Risks and Uncertainties\u201d in our MD&amp;A for the year ended December\n31, 2018 and under \u201cRisk Factors\u201d in the Company\u2019s most recently filed Annual\nInformation Form, which is available for viewing on SEDAR at <\/em><a href=\"http:\/\/www.sedar.com\"><em>www.sedar.com<\/em><\/a><em>.\nIn addition, note that information relating to reserves <\/em><em>and resources <\/em><em>is deemed to be\nforward-looking information, as it involves the implied assessment, based on\ncertain estimates and assumptions that the reserves <\/em><em>and resources <\/em><em>described can be\neconomically produced in the future. With respect to forward-looking\ninformation contained in this document, the Company has made assumptions\nregarding, among other things: the outcome of the ongoing right of first\nrefusal sale process in respect of the acquisition of St. Patrick Oil &amp; Gas\nS.A.<\/em><em>; the impact of inflation rates in\nArgentina and the devaluation of the Argentine peso against the USD on the\nCompany<\/em><em>; the impact of increasing competition; the general\nstability of the economic and political environment in which the Company\noperates, including operating under a consistent regulatory and legal framework\nin Argentina; future oil, natural gas and NGL prices (including the effects of\ngovernmental incentive programs thereon); the timely receipt of any required\nregulatory approvals; the ability of the Company to obtain qualified staff,\nequipment and services in a timely and cost efficient manner; drilling results;\nthe costs of obtaining equipment and personnel to complete the Company\u2019s\ncapital expenditure program; the ability of the operator of the projects which\nthe Company has an interest in to operate the field in a safe, efficient and\neffective manner; the ability of the Company to obtain financing on acceptable\nterms when and if needed; the ability of the Company to service its debt\nrepayments when required; field production rates and decline rates; the ability\nto replace and expand oil and natural gas reserves through acquisition,\ndevelopment and exploration activities; the timing and costs of pipeline,\nstorage and facility construction and expansion and the ability of the Company\nto secure adequate product transportation; currency, exchange and interest\nrates; the regulatory framework regarding royalties, taxes and environmental\nmatters in the jurisdictions in which the Company operates; and the ability of\nthe Company to successfully market its oil and natural gas products.&nbsp; Management of Crown Point has included the\nabove summary of assumptions and risks related to forward-looking information\nincluded in this document in order to provide investors with a more complete\nperspective on the Company\u2019s future operations.&nbsp;\nReaders are cautioned that this information may not be appropriate for\nother purposes. Readers are cautioned that the foregoing lists of factors are\nnot exhaustive.&nbsp; The forward-looking\ninformation contained in this document are expressly qualified by this\ncautionary statement. The forward-looking information contained herein is made\nas of the date of this document and the Company disclaims any intent or\nobligation to update publicly any such forward-looking information, whether as\na result of new information, future events or results or otherwise, other than\nas required by applicable Canadian securities laws.<\/em><\/p>\n\n\n\n<p><em>Well-Flow Test Results and\nInitial Production Rates:<\/em><em>&nbsp; <\/em><em>Any references in this\ndocument to well-flow test results, swab test rates and\/or initial production\nrates are useful in confirming the presence of hydrocarbons, however, such test\nresults and rates are not determinative of the rates at which such wells will\ncontinue production and decline thereafter. While encouraging, readers are\ncautioned not to place reliance on such test results and rates in calculating\nthe aggregate production for the Company. Well-flow test results, swab test\nrates and initial production rates may be estimated based on other third party\nestimates or limited data available at the time. Well-flow test result data\nshould be considered to be preliminary until a pressure transient analysis\nand\/or well-test interpretation has been carried out. In all cases in this\ndocument, well-flow test results and initial production results are not\nnecessarily indicative of long-term performance of the relevant well or fields\nor of ultimate recovery of hydrocarbons.<\/em><\/p>\n\n\n\n<p><strong><em>Neither\nTSX Venture Exchange nor its Regulation Services Provider (as that term is\ndefined in the policies of the TSX Venture Exchange) accepts responsibility for\nthe adequacy or accuracy of this news release.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crown Point Announces Operating and Financial Results for the Three Months and Year Ended December 31, 2018\ufeff<\/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":[27,8],"tags":[],"_links":{"self":[{"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/posts\/1820"}],"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=1820"}],"version-history":[{"count":5,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/posts\/1820\/revisions"}],"predecessor-version":[{"id":1837,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=\/wp\/v2\/posts\/1820\/revisions\/1837"}],"wp:attachment":[{"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crownpointenergy.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}