{"id":447,"date":"2014-12-08T21:53:52","date_gmt":"2014-12-08T21:53:52","guid":{"rendered":"https:\/\/crownpointenergy.com\/?p=447"},"modified":"2014-12-15T16:12:04","modified_gmt":"2014-12-15T16:12:04","slug":"apr-29-2013","status":"publish","type":"post","link":"https:\/\/crownpointenergy.com\/?p=447","title":{"rendered":"Apr-29-2013"},"content":{"rendered":"

Press Releases
\n2013 Press Releases<\/h4>
<\/div> Crown Point Announces Financial and Operating Results for the Four Months Ended December 31, 2012\u00a0<\/span><\/a><\/strong><\/p>\n

April 29, 2013<\/p>\n

\n

TSX-V: CWV: Crown Point Energy Inc. (“Crown Point” or the “Company”)today announces its operating and financial results for the four months ended December 31, 2012.Crown Point changed its financial <\/span>year-end<\/span> from August 31 to December 31 and therefore the audited results presented herein are with respect to the four month transition year ended December 31, 2012 and the comparative prior twelve month fiscal year ended August 31, 2012.Copies of the Company’s audited consolidated financial statements for the four months endedDecember 31, 2012, the related Management’s Discussion and Analysis(“MD&A”) and the Annual Information Form (containing the Company’s National Instrument <\/span>51-101\u2013<\/span> Standards of Disclosure for Oil and Gas Activities <\/span>(“NI 51- 101”)disclosure for the period ended December 31, 2012) have been filed with Canadian securities regulatory authorities and will be made available under the Company’s profile at www.sedar.com and on the Company’s website at <\/span>www.crownpointenergy.com<\/span>. All amounts are in Canadian ‘$’ unless otherwise stated.<\/span><\/p>\n

FINANCIAL AND OPERATING HIGHLIGHTS<\/p>\n

Highlights in the four months ended December 31, 2012 include:<\/p>\n

Cerro de Los Leones SeismicProgram Completed:142 square kilometres of 3D and 122 kilometres of 2D seismic was recorded on the Company’s 100% owned 306,646 acre concession in the Neuqu\u00e9n Basin during the period. Drilling at Cerro de Los Leones is expected to commence inlate 2013.<\/span><\/p>\n

Argentine New Gas Price Announcement: Argentina announced a “New Gas” program at $7.50\/MMBtu(approximately $7.75\/Mcf) to encourage the development of incremental natural gas production and reserves. Crown Point’s average natural gas sale price for the four months ended December 31, 2012 was $2.95 per Mcf.<\/span><\/p>\n

Average Sales Volume:<\/span>2,053 BOE per day for the four month period endedDecember 2012 and 1,888 BOEPD for the three month period endedAugust31, 2012.<\/p>\n

Funds Flow from Operations: <\/span>$2.6 millionfor the four months ended December 31, 2012 as compared to $.3 million for the three monthsended August 31, 2012.<\/p>\n

Total Corporate Proved Reserves:<\/span>4,334 million BOE (grossworking interest).<\/p>\n

Total Proved plus Probable Reserves:<\/span>7,155 million BOE(grossworking interest).<\/p>\n

2012 Drilling Program:<\/span>Five successful oil wells drilled at El Valle, with stratigraphic correlations and production performance pointing to a pool of significant size with water flood potential.<\/p>\n

Petroleo Plus Payment: <\/span>Subsequent to year end, Crown Point received its first cash proceeds of US$1.25 million from the sale of Petroleo Plus credits derived from the PetroleoPlus Program which was established to encourage oil development.<\/p>\n<\/div>\n

<\/div>\n
\n

FINANCIAL AND OPERATING INFORMATION<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n\n

Four months ended December 31, 2012<\/strong><\/p>\n<\/td>\n

\n

Three months ended August 31, 2012<\/strong><\/p>\n<\/td>\n

\n

Year ended August 31, 2012<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Total sales volumes (BOE)
\nAverage daily sales volumes<\/p>\n<\/td>\n

<\/td>\n\n

250,411<\/p>\n<\/td>\n

<\/td>\n\n

173,696<\/p>\n<\/td>\n

<\/td>\n\n

266,215<\/p>\n<\/td>\n<\/tr>\n

\n

(BOEPD)<\/p>\n<\/td>\n

<\/td>\n\n

2,053<\/p>\n<\/td>\n

<\/td>\n\n

1,888<\/p>\n<\/td>\n

<\/td>\n\n

727<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

Per BOE<\/span><\/p>\n<\/td>\n

<\/td>\n\n

Per BOE<\/span><\/p>\n<\/td>\n

<\/td>\n\n

Per BOE<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Oil and gas revenue<\/p>\n<\/td>\n

\n

$ 8,206,914<\/p>\n<\/td>\n

\n

$ 32.77<\/p>\n<\/td>\n

\n

$ 4,914,604<\/p>\n<\/td>\n

\n

$ 28.29<\/p>\n<\/td>\n

\n

$10,772,942<\/p>\n<\/td>\n

\n

$ 40.47<\/p>\n<\/td>\n<\/tr>\n

\n

Royalties<\/p>\n<\/td>\n

\n

(1,460,984)<\/p>\n<\/td>\n

\n

(5.83)<\/p>\n<\/td>\n

\n

(989,844)<\/p>\n<\/td>\n

\n

(5.70)<\/p>\n<\/td>\n

\n

(2,387,282)<\/p>\n<\/td>\n

\n

(8.97)<\/p>\n<\/td>\n<\/tr>\n

\n

Operating costs<\/strong><\/p>\n<\/td>\n

\n

(2,825,897)<\/strong><\/p>\n<\/td>\n

\n

(11.29)<\/strong><\/p>\n<\/td>\n

\n

(1,471,908)<\/strong><\/p>\n<\/td>\n

\n

(8.47)<\/strong><\/p>\n<\/td>\n

\n

(2,820,736)<\/strong><\/p>\n<\/td>\n

\n

(10.60)<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Operating netback<\/strong><\/p>\n<\/td>\n

\n

$ 3,920,033<\/strong><\/p>\n<\/td>\n

\n

$ 15.65<\/strong><\/p>\n<\/td>\n

\n

$ 2,452,852<\/strong><\/p>\n<\/td>\n

\n

$ 14.12<\/strong><\/p>\n<\/td>\n

\n

$ 5,564,924<\/strong><\/p>\n<\/td>\n

\n

$ 20.90<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Net loss<\/p>\n<\/td>\n

\n

$(813,778)<\/p>\n<\/td>\n

<\/td>\n\n

$(1,831,364)<\/p>\n<\/td>\n

<\/td>\n\n

$(5,093,023)<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Per share \u2013 basic and diluted<\/p>\n<\/td>\n

\n

$ (0.01)<\/p>\n<\/td>\n

<\/td>\n\n

$ (0.02)<\/p>\n<\/td>\n

<\/td>\n\n

$ (0.07)<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Working capital<\/p>\n<\/td>\n

\n

$14,846,843<\/p>\n<\/td>\n

<\/td>\n\n

$ 17,736,716<\/p>\n<\/td>\n

<\/td>\n\n

$ 17,736,716<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Total assets<\/p>\n<\/td>\n

\n

$83,751,460<\/p>\n<\/td>\n

<\/td>\n\n

$ 86,745,872<\/p>\n<\/td>\n

<\/td>\n\n

$ 86,745,872<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Common shares outstanding<\/p>\n<\/td>\n

\n

104,515,222<\/p>\n<\/td>\n

<\/td>\n\n

104,515,222<\/p>\n<\/td>\n

<\/td>\n\n

104,515,222<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

RESERVES<\/p>\n

McDaniel & Associates Consultants Ltd. (“McDaniel<\/span>“), an independent qualified reserves evaluator, evaluated the oil and natural gas reserves attributable to all of Crown Point’s properties as at December 31, 2012 based on forecast prices and costs and in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook.McDaniel’s evaluation also presents the estimated net present value of future net revenue of Crown Point and the dollar amounts of such future net revenue are expressed in United States dollars (“US$”, and “MUS$” means thousands of United States dollars) unless otherwise indicated. McDaniel’s report dated April 12, 2013 on Crown Point’soil and gas reserves as at December 31, 2012 is summarized below:<\/p>\n

SUMMARY OF RESERVES AS OF December 31, 2012AS COMPARED TO AUGUST 31, 2012<\/p>\n

(Forecast Prices & Costs)<\/p>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Reserves Category<\/p>\n<\/td>\n

\n

Company Gross Oil and Liquids\u00a0<\/strong><\/p>\n

(Mbbls)<\/strong><\/p>\n<\/td>\n

\n

% Change<\/p>\n<\/td>\n

\n

Company Gross Natural Gas\u00a0<\/strong><\/p>\n

(Mmcf)<\/strong><\/p>\n<\/td>\n

\n

% Change<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n\n

December 2012<\/strong><\/p>\n<\/td>\n

\n

August 2012<\/p>\n<\/td>\n

<\/td>\n\n

December 2012<\/strong><\/p>\n<\/td>\n

\n

August 2012<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Proved developed producing<\/p>\n<\/td>\n

\n

845<\/strong><\/p>\n<\/td>\n

\n

1,100<\/p>\n<\/td>\n

\n

-22%<\/p>\n<\/td>\n

\n

8,575<\/strong><\/p>\n<\/td>\n

\n

9,068<\/p>\n<\/td>\n

\n

-5%<\/p>\n<\/td>\n<\/tr>\n

\n

Proved developed non-producing<\/p>\n<\/td>\n

\n

265<\/strong><\/p>\n<\/td>\n

\n

242<\/p>\n<\/td>\n

\n

+9%<\/p>\n<\/td>\n

\n

364<\/strong><\/p>\n<\/td>\n

\n

272<\/p>\n<\/td>\n

\n

+34%<\/p>\n<\/td>\n<\/tr>\n

\n

Proved undeveloped<\/p>\n<\/td>\n

\n

417<\/strong><\/p>\n<\/td>\n

\n

332<\/p>\n<\/td>\n

\n

+26%<\/p>\n<\/td>\n

\n

7,860<\/strong><\/p>\n<\/td>\n

\n

7,140<\/p>\n<\/td>\n

\n

+10%<\/p>\n<\/td>\n<\/tr>\n

\n

Total proved<\/p>\n<\/td>\n

\n

1,535<\/strong><\/p>\n<\/td>\n

\n

1,674<\/p>\n<\/td>\n

\n

-8%<\/p>\n<\/td>\n

\n

16,799<\/strong><\/p>\n<\/td>\n

\n

16,479<\/p>\n<\/td>\n

\n

+2%<\/p>\n<\/td>\n<\/tr>\n

\n

Total probable<\/p>\n<\/td>\n

\n

1,250<\/strong><\/p>\n<\/td>\n

\n

1,517<\/p>\n<\/td>\n

\n

-18%<\/p>\n<\/td>\n

\n

9,423<\/strong><\/p>\n<\/td>\n

\n

11,230<\/p>\n<\/td>\n

\n

-16%<\/p>\n<\/td>\n<\/tr>\n

\n

Total proved plus probable<\/p>\n<\/td>\n

\n

2,785<\/strong><\/p>\n<\/td>\n

\n

3,192<\/p>\n<\/td>\n

\n

-13%<\/p>\n<\/td>\n

\n

26,222<\/strong><\/p>\n<\/td>\n

\n

27,709<\/p>\n<\/td>\n

\n

-5%<\/p>\n<\/td>\n<\/tr>\n

\n

Total possible<\/p>\n<\/td>\n

\n

992<\/strong><\/p>\n<\/td>\n

\n

1,009<\/p>\n<\/td>\n

\n

-2%<\/p>\n<\/td>\n

\n

4,492<\/strong><\/p>\n<\/td>\n

\n

4,755<\/p>\n<\/td>\n

\n

-6%<\/p>\n<\/td>\n<\/tr>\n

\n

Total provided plus probable plus possible<\/p>\n<\/td>\n

\n

3,778<\/strong><\/p>\n<\/td>\n

\n

4,201<\/p>\n<\/td>\n

\n

+10%<\/p>\n<\/td>\n

\n

30,714<\/strong><\/p>\n<\/td>\n

\n

32,464<\/p>\n<\/td>\n

\n

-5%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Reserves Category<\/strong><\/p>\n<\/td>\n

\n

Company Gross Total Reserves\u00a0<\/strong><\/p>\n

MBOE<\/strong><\/p>\n<\/td>\n

\n

% Change<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n\n

December 2012<\/strong><\/p>\n<\/td>\n

\n

August 2012<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
\n

Proved developed producing<\/p>\n<\/td>\n

\n

2,283<\/strong><\/p>\n<\/td>\n

\n

2,611<\/p>\n<\/td>\n

\n

-13%<\/p>\n<\/td>\n<\/tr>\n

\n

Proved developed non-producing<\/p>\n<\/td>\n

\n

325<\/strong><\/p>\n<\/td>\n

\n

288<\/p>\n<\/td>\n

\n

+34%<\/p>\n<\/td>\n<\/tr>\n

\n

Proved undeveloped<\/p>\n<\/td>\n

\n

1,727<\/strong><\/p>\n<\/td>\n

\n

1,522<\/p>\n<\/td>\n

\n

+13%<\/p>\n<\/td>\n<\/tr>\n

\n

Total proved<\/p>\n<\/td>\n

\n

4,334<\/strong><\/p>\n<\/td>\n

\n

4,421<\/p>\n<\/td>\n

\n

-2%<\/p>\n<\/td>\n<\/tr>\n

\n

Total probable<\/p>\n<\/td>\n

\n

2,821<\/strong><\/p>\n<\/td>\n

\n

3,389<\/p>\n<\/td>\n

\n

-17%<\/p>\n<\/td>\n<\/tr>\n

\n

Total proved plus probable<\/p>\n<\/td>\n

\n

7,155<\/strong><\/p>\n<\/td>\n

\n

7,810<\/p>\n<\/td>\n

\n

-8%<\/p>\n<\/td>\n<\/tr>\n

\n

Total possible<\/p>\n<\/td>\n

\n

1,741<\/strong><\/p>\n<\/td>\n

\n

1,802<\/p>\n<\/td>\n

\n

-3%<\/p>\n<\/td>\n<\/tr>\n

\n

Total provided plus probable plus possible<\/p>\n<\/td>\n

\n

8,897<\/strong><\/p>\n<\/td>\n

\n

9,611<\/p>\n<\/td>\n

\n

-7%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nNet Present Values of Future Net Revenue Before Income Taxes Discounted at (%\/year)<\/strong><\/td>\n<\/tr>\n
Reserves Category<\/strong><\/td>\n0%\u00a0MUS$<\/td>\n5%\u00a0MUS$<\/td>\n10%\u00a0MUS$<\/td>\n15%\u00a0MUS$<\/td>\n20% MUS$<\/td>\n<\/tr>\n
Proved developed producing<\/td>\n18,083<\/td>\n16,971<\/td>\n15,969<\/td>\n15,077<\/td>\n14,287<\/td>\n<\/tr>\n
Proved developed non-producing<\/td>\n8,113<\/td>\n6,891<\/td>\n5,943<\/td>\n5,193<\/td>\n4,588<\/td>\n<\/tr>\n
Proved undeveloped<\/td>\n12,326<\/td>\n9,317<\/td>\n7,038<\/td>\n5,296<\/td>\n3,949<\/td>\n<\/tr>\n
Total proved<\/td>\n38,522<\/td>\n33,179<\/td>\n28,950<\/td>\n25,565<\/td>\n22,824<\/td>\n<\/tr>\n
Total probable<\/td>\n56,013<\/td>\n42,732<\/td>\n33,485<\/td>\n26,838<\/td>\n21,919<\/td>\n<\/tr>\n
Total proved plus probable<\/td>\n94,536<\/td>\n75,910<\/td>\n62,435<\/td>\n52,403<\/td>\n44,743<\/td>\n<\/tr>\n
Total possible<\/td>\n50,356<\/td>\n36,616<\/td>\n27,601<\/td>\n21,446<\/td>\n17,092<\/td>\n<\/tr>\n
Total proved plus probable plus possible<\/td>\n144,891<\/td>\n112,526<\/td>\n90,036<\/td>\n73,848<\/td>\n61,835<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

(Forecast Prices & Costs)<\/p>\n<\/div>\n

\n

SUMMARY OF NET PRESENT VALUE OF FUTURE NET REVENUE<\/p>\n

AS OF December 31, 2012<\/p>\n

(Forecast Prices & Costs)<\/p>\n

(1)<\/span>Possible reserves” are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.<\/p>\n

(2)<\/span>The estimated net present values of future net revenues disclosed do not represent fair market value.<\/span><\/p>\n

Sales of oil and natural gas during the four month transition year ended December 31, 2012 were 250,411 BOE comprised 39% of oil and liquids and 61% of natural gas. Oil and liquids sales for the four month transition year ended December 31, 2012 were 97,919 barrels of oil and liquids. Natural gas sales for the four month transition year ended December 31, 2012 were 914,951 Mcf of natural gas.<\/p>\n

Reserve volumes and net present values of Crown Point’s reserves were impacted by several factors. Crown Point’s sales volumes for the period were 250,411 BOE with sales revenue of $8,206,914. During the period Crown Point did not drill any wells. Technical revisions were primarily due to depleted reservoir pressure in the south east area of El Valle resulting in a negative revision to primary oil recovery on proved plus probable reserves of 273,000 barrels comprised of a negative revision of 80,000 barrels of proved reserves and of 192,000 barrels of probable reserves. Increased<\/p>\n<\/div>\n

<\/div>\n
\n

operating costs experienced at El Valle and on the Tierra del Fuego (“TDF<\/span>“) concession coupled with reserve revisions impacted net present values.<\/p>\n

Further details of the evaluation of the Company’s reserves as at December 31, 2012 are contained in the Company’s NI 51-101 filings for the period ended December 31, 2012 included in the Annual Information Form which has been filed with Canadian securities regulatory authorities and will be made available under the Company’s profile atwww.sedar.com<\/span>and on the Company’s website at www.crownpointenergy.com<\/span>.<\/p>\n

OPERATIONS<\/p>\n

TIERRA DEL FUEGO, ARGENTINA<\/p>\n

The Company’s 25.78% working interest in the Tierra del Fuego area of Argentina covers approximately 489,000 acres (126,000 net acres) in the Austral Basin and includes the Las Violetas, Angostura Sur and Rio Cullen exploitation concessions. The primary term of all three concessionsexpires in November 2016; however, the Company and its partners have negotiated a ten year extension (to November 2026) with the provincial government authorities of TDF. The extension and its terms are currently awaiting ratification by the provincial legislature.<\/p>\n

Crown Point’s TDF concessions are high quality natural gas weighted assets possessing the capability to deliver increased levels of production and reserves in an expected increasing natural gas price market.<\/p>\n

NEW GAS INCENTIVE IMPACT ON CROWN POINT<\/p>\n

On January 18, 2013, the Government of Argentina issued a resolution to increase the price to US$7.50\/MMbtu (approximately US$7.75\/Mcf)for natural gas production in excess of a “base” production rate determined for each company (the “New Gas Incentive<\/span>“). The New Gas Incentive provides that participating companies will receive, on a payment basis to be determined from the National Government, cash compensation equal to the difference between US$7.50\/MMbtu(approximately US$7.75\/mcf) and the price received for gas produced in excess of the base production rate. Certain details are still pending to fully clarify how the New Gas Incentive will be implemented. The implementation of this program or one similar may have a significant and positive impact on Crown Point’s capital programs and its financial netbacks from production from the TDF concessions.<\/p>\n

In the event that Crown Point and its joint venture partners participate in the “New Gas” program, it is likely that the Tierra del Fuego capital spending plans would be revised to include additional drilling and 3D seismic acquisition designed to accelerate growth in production and reserves.<\/p>\n

DEVELOPMENT AND DRILLING PLANS<\/p>\n

Development and drilling operations will commence in TDF after the ten year extension to 2026 has been approved.<\/p>\n

The Company plans to acquire additional 3D seismic on the Las Violetas, Angostura Sur and Rio Cullen concessions starting in 2014. The proposed Las Violetas 3D seismic program is designed to fully evaluate and identify drilling targets over areas and trends, which have been mapped using older 2D seismic. The Angostura Sur and Rio Cullen seismic programs are following up exploration leads from existing 2D seismic and geological information.<\/p>\n<\/div>\n

<\/div>\n
\n

CERRO DE LOS LEONES, NEUQUEN BASIN, ARGENTINA<\/p>\n

The Company’s 100% interest in the Cerro de Los Leones exploration concession covers approximately 306,646 acres in the Mendoza portion of the Neuqu\u00e9n Basin.<\/p>\n

EXPLORATION, DEVELOPMENT AND DRILLING PLANS<\/p>\n

Crown Point has completed the Cerro de los Leones seismic programs comprised of 122 kilometers of 2D seismic and 143 square kilometers of 3D seismic. Field recording of both seismic programs has been completed, the processing of data is nearing completion and interpretation of the data has commenced.The total cost of the two seismic programs is estimated to be $6 million.<\/p>\n

Drilling on various conventional plays is expected to commence in late 2013, following interpretation of the seismic programs. Information obtained from these wells will assist Crown Point in determining the economic viability of the VacaMuertashale play on the Cerro de Los Leones concession.A second 3D seismic program is planned for the eastern portion of the concession targeting both structural plays and stratigraphic resource type plays. This program may be shot in 2014 and would be followed up with the drilling of one to two wells targeting the above mentioned plays.<\/p>\n

Following the initial drilling phase, Crown Point may consider additional exploration and development drilling in the area, including the possibility of drilling vertical and horizontal tests in the VacaMuerta shale play.<\/p>\n

EL VALLE, SAN JORGE BASIN, ARGENTINA<\/p>\n

Crown Point has a 50% working interest in an approximate 15,864 acre area in the El Valle area of the Golfo San Jorge Basin. The Company has an 80% interest in the production of all wells drilled by Crown Point on this concession until payout of 300% of the costs to drill, complete, equip and tie in each well. El Valle has three distinct productive sedimentary formations, which, in descending order from shallow to deep, are the Ca\u00f1adonSeco, Caleta Olivia and Mina el Carmen. Each of these formations may contain multiple discrete hydrocarbon bearing sandstone zones. Typically, the Ca\u00f1adonSeco oil produces medium grade oil (API gravity that ranges from 24 to 28\u00b0), while the Caleta Olivia and Mina el Carmen produce lighter oil (API gravity of approximately 30\u00b0). The Company has developed a drilling inventory consisting of 12 development drilling and eight new exploration drilling targets in the El Valle field. Additionally, potential exists for secondary recovery programs such as water flood or horizontal drilling, plus workovers and recompletions on existing wells.<\/p>\n

2012 DRILLING PROGRAM<\/p>\n

Since Crown Point commenced drilling operations on the El Valle concession, the Company has drilled and completed 18 wells (16 oil wells, 1 suspended potential oil well and 1 non-producing natural gas well) with no dry holes.<\/p>\n

During calendar 2012, Crown Point drilled 5 successful oil wells on the El Valle concession for a total cost of $12.7 million. This program, which commenced in April 2012, was focused on the drilling of development oil wells with multiple-zones targeted in the Ca\u00f1ad\u00f3nSeco and Caleta Olivia formations in the south east and south central areas of El Valle.<\/p>\n

Crown Point has identified additional drilling locations in this pool and is in the early conceptual planning stage of a waterflood secondary recovery scheme to increase reservoir pressure and the ultimate reserve recovery of the pool. Waterflood secondary recovery schemes are used throughout the San Jorge Basin and consistently demonstrate improved rates of production and higher ultimate recoveries of oil in place from equivalent reservoirs.<\/p>\n<\/div>\n

<\/div>\n
\n

For inquiries please contact:<\/p>\n

Murray McCartney
\nPresident & CEO
\nPh: (403) 232-1150
\nCrown Point Energy Inc.
\nmmccartney@crownpointenergy.com<\/a><\/p>\n

Arthur J.G. Madden
\nVice-President & CFO
\nPh: (403) 232-1150
\nCrown Point Energy Inc.
\namadden@crownpointenergy.com<\/a><\/p>\n

Brian J. Moss
\nExecutive Vice-President & COO
\nPh: (403) 232-1150
\nCrown Point Energy Inc.
\nbmoss@crownpointenergy.com<\/a><\/p>\n

Website: <\/span>www.crownpointenergy.com<\/span><\/p>\n

About Crown Point<\/p>\n

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’s exploration and development activities are focused in the Golfo San Jorge, Neuqu\u00e9n and Austral 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.<\/p>\n<\/div>\n

<\/div>\n
\n

Advisory<\/p>\n

Certain Oil and Gas Disclosures: Barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 Mcf) to one barrel (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. In addition, given that the value ratio based on the current price of crude oil in Argentina as compared to the current price of natural gas in Argentina is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.”MBOE” means thousands of barrels of oil equivalent. “BOEPD” means barrels of oil equivalent per day. “MMBtu” means million British thermal units. “Mcf” means thousand cubic feet. “Mmcf” means million cubic feet. “Mbbls” means thousands of barrels.<\/p>\n

Non-IFRS Measures: This press release discloses “funds flow from operations” and “operating netbacks”, which do not have standardized meanings under International Financial Reporting Standards (“IFRS<\/span>“) and as such may not be comparable with the calculation of similar measures used by other entities. Funds flow from operations should not be considered an alternative to or more meaningful than, cash flow from operating activities as determined in accordance with IFRS as an indicator of the Company’s performance. Management uses funds flow from operations to analyze operating performance and considers funds flow from operations to be a key measure as it demonstrates the Company’s ability to generate cash necessary to fund future capital investment. A reconciliation of funds flow from operations to cash flow from operating activities is presented in the MD&A. Operating netbacks are calculated on a per unit basis as oil, natural gas and natural gas liquids revenues less royalties, transportation and operating costs. Management believes this measure is a useful supplemental measures of the Company’s profitability relative to commodity prices.<\/p>\n

Forward looking information: Certain information set forth in this document, including: our expectation that drilling will commence in Cerro de Los Leones in late 2013; belief that we have identified an oil pool of significant size with waterflood potential on our El Valle concession; belief that its interests in the TDF area possess the capability of delivering increased levels of production and reserves in an expected increasing natural gas price market; the expected plans for the TDF concessions if the New Gas program is implemented and Crown Point participates in such program; the anticipation that development and drilling operations will commence in TDF when and if the TDF concessions are extended; expected plans and timing for a seismic program on the TDF concession; timing for commencement of the interpretation of seismic data from the Cerro de Los Leones concession; the expectation that additional exploration and development drilling in the Cerro de Los Leones area may be considered; belief that Crown Point has a drilling inventory of 12 development wells and 8 exploration wells in the El Valle area; expectations for waterflood potential on our El Valle concession, and the expectations for the impact such a waterflood program could have on production and recovery rates; is considered forward-lookinginformation, and necessarily involve risks and uncertainties, certain of which are beyond Crown Point’s control. Such risks include but are not limited to: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; risks associated with operating in Argentina, including risks of changing government regulations (including the adoption of, amendments to, or the cancellation of government incentive programs or other laws and regulations relating to commodity prices, taxation, currency controls and export restrictions, in each case that may adversely impact Crown Point), expropriation\/nationalization of assets, price controls on commodity prices, inability to enforce contracts in certain circumstances, the potential for a sovereign debt default, and other economic and political risks; loss of markets and other economic and industry conditions; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling services; incorrect assessment of value of acquisitions and failure to realize the benefits therefrom; delays resulting from or inability to obtain required regulatory approvals; the lack of availability of qualified personnel or management; stock market volatility and ability to access sufficient capital from internal and external sources; and economic or industry condition changes. Actual results, performance or achievements could differ materially from those expressed in, or implied by, theforward-looking information and, accordingly, no assurance can be given that any events anticipated by theforward-looking information will transpire or occur, or if any of them do so,<\/p>\n<\/div>\n

<\/div>\n
\n

what benefits that Crown Point will derive therefrom. In addition, the information relating to reserves is deemed to be forward-looking information, as such information involves the implied assessment, based on certain estimates and assumptions, that the reserves described can be economically produced in the future. With respect toforward-looking information contained herein, the Company has made assumptions regarding: the impact of increasing competition; the general stability of the economic and political environment in which the Company operates; the timely receipt of any required regulatory approvals; 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’s 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; 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; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, commodity price controls, import\/export matters, taxes and environmental matters in Argentina; and the ability of the Company to successfully market its oil and natural gas products. Additional information on these and other factors that could affect Crown Point are included in reports on file with Canadian securities regulatory authorities, including under the heading “Risk Factors” in the Company’s annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking information contained in this document are made as of the date of this document, and Crown Point does not undertake any obligation to update publicly or to revise any of the included forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities law.<\/p>\n

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.<\/p>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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