Yahoo Finance Crown Point Makes Economic Offer for Chañares Herrados Concession
CALGARY, Alberta, Dec. 28, 2020 (GLOBE NEWSWIRE) -- (TSX-V:CWV): Crown Point Energy Inc. ("Crown Point" or the "Company") announces that the Province of Mendoza is reviewing the Company’s economic offer to acquire a 25 year exploitation concession for the Chañares Herrados block, located in the Cuyo Basin, Province of Mendoza.
Crown Point (50% WI), together with partner Petrolera Aconcagua Energía ("Aconcagua") (50% WI) (collectively, the "Joint Venture"), had previously registered to participate in an auction process arranged and conducted by the Province of Mendoza to bid for a 25 year exploitation license covering the 40.6 square kilometer Chañares Herrados concession, located approximately 50 kilometers south of Mendoza City in the Cuyo basin.
The Joint Venture offer was opened on December 23rd and is now being reviewed by the Province. The bid includes a cash payment of US$8.3 million (US$4.15 million net to Crown Point), a 13% royalty on oil production and a 10 year, US$85.7 million work program which includes well work overs, infrastructure optimization and a multi- well drilling program. No competing bid was accepted by the Province.
Based on information published by the Secretaría de Energía, in November 2020 the Chañares Herrados concession produced an average of approximately 130 m3 per day (820 barrels per day) of low to medium gravity crude oil. The concession is covered by 3D seismic, is easily accessible, and is close to pipeline infrastructure which delivers oil to the YPF refinery located on the southern outskirts of Mendoza City.
The Province's review process is expected to take several weeks before the auction result is confirmed. If the Joint Venture is awarded the concession it will be operated by Aconcagua, a private Argentine oil and gas company with an extensive and successful record in mature oil field operations. Crown Point will provide geological and geophysical support to the work program implementation.
About Crown Point
Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in Calgary, Canada, incorporated in Canada, trading on the TSX Venture Exchange and with operations in Argentina. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a basis for future growth.
Abbreviations: "WI" means working interest; "m3" means cubic meters; "3D" means three dimensional; "YPF" means YPF S.A.; "US$" means United States dollars.
Production Rates: Any references herein to production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Production rates may be estimated based on third party estimates or limited data available at this time. In all cases herein, production rates are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.
Forward-looking Information: This document contains forward-looking information. This information relates to future events and the Company’s future performance. All information and statements contained herein that are not clearly historical in nature may constitute forward-looking information. Such information represents the Company’s internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. 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. 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: that the Province's review process is expected to take several weeks before the auction result is confirmed; and the Company's business strategies. 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 risk that Crown Point does not ultimately acquire its 50% working interest in the concession or that such acquisition is delayed, whether because the Province does not confirm the award of the concession to the Joint Venture or for other reasons that the Company cannot predict; the risk that the terms of the Joint Venture's offer described herein are amended in a manner that are less favorable to the Company; the risk that the Company changes its business strategies; and the risks and other factors described under “Risk Factors” in the Company’s most recently filed Annual Information Form, which is available for viewing on SEDAR at www.sedar.com. With respect to forward-looking information contained in this document, the Company has made assumptions regarding, among other things: that the Province will ultimately confirm the award of the concession to the Joint Venture on the terms described herein and the timing thereof; and the ability of the Company to obtain the financing required on acceptable terms to pay its share of the initial cash payment noted herein and to fund its share of future work commitments on the concession. Management of Crown Point has included the above summary of assumptions and risks related to forward-looking information in order to provide investors with a more complete perspective on the Company’s future operations. 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. 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
CONTACT: For inquiries please contact: Brian Moss President & CEO Ph: (403) 232-1150 Crown Point Energy Inc. bmoss@crownpointenergy.com Marisa Tormakh Vice-President, Finance & CFO Ph: (403) 232-1150 Crown Point Energy Inc. mtormakh@crownpointenergy.com
