|By Marketwired .||
|February 27, 2014 06:00 AM EST||
CALGARY, ALBERTA -- (Marketwired) -- 02/27/14 -- Crown Point Energy Inc. (TSX VENTURE: CWV) ("Crown Point" or "the Company") is pleased to announce that a drilling contract has been signed with San Antonio International to provide a drilling rig for our initial ten well drilling program in Tierra del Fuego (25.78% Working Interest).
The drilling rig is expected to arrive in Tierra del Fuego in March with drilling operations on the Las Violetas concession expected to commence in early April. The term of the contract is one year with provisions for extending the term.
The initial ten well program on the Las Violetas concession will consist of eight development wells in the Los Flamencos gas pool and two exploration wells, one on the Puesto Quince prospect and another near the southern San Luis natural gas pool. All of the drilling locations have been fully imaged with 3-d seismic. The Puesto Quince prospect lies up dip of the Los Flamencos and Los Patos producing pools and is adjacent to the Rio Chico gas pool. The feature has a seismically mapped areal extent of approximately 50 km2. The San Luis exploration prospect has been defined with 3-d seismic and is located on a separate fault block near the San Luis gas pool which to date has produced approximately 32 BCF of Natural Gas.
Concurrent with the commencement of drilling operations a fracture stimulation program will be performed on four producing wells in the Los Flamencos natural gas pool and on well in the San Luis Field. A similar program undertaken in 2010 significantly improved deliverability from five wells in the Los Flamencos pool.
Crown Point in March will be re-submitting its application to participate in the New Gas Natural Gas Incentive program. This program provides financial incentives to producers who increase their production of natural gas. Incremental natural gas production above an agreed production decline curve can receive up to $7.50/mcf under the program.
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 operating in South America. Crown Point's exploration and development activities are focused in the Golfo San Jorge, Neuquen 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.
Analogous Information: Certain information contained herein may be considered "analogous information" as defined in National Instrument 51-101 - Standards of Disclosure of Oil and Gas Activities ("NI 51-101"). Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. In particular, this press release: notes that the Puesto Quince prospect lies up dip of the Los Flamencos and Los Patos producing pools and is adjacent to the Rio Chico gas pool; notes that the San Luis exploration prospect is located on a separate fault block near the San Luis gas pool which to date has produced 32 BCF of natural gas; and notes that a fracture stimulation program similar to the one to be undertaken on five producing wells in the Los Flamencos natural gas pool was undertaken in 2010 and significantly improved deliverability from five adjacent wells in the pool. Such information is based on independent public data and public information recently obtained from government sources and the Company has no way of verifying the accuracy of such information and cannot determine whether the source of the information is independent. Such information has been presented to help demonstrate that: hydrocarbons may be present in commercially recoverable quantities in the Puesto Quince prospect and the San Luis prospect; and that the fracture stimulation program to be performed on four wells in the Los Flamencos pool and one well in the San Luis pool may improve deliverability. There is no certainty that such results will be achieved by the Company and such information should not be construed as an estimate of future reserves or resources or future production levels.
Anticipated Results: Certain information contained herein may be considered to be "anticipated results" as defined in NI 51-101. In particular, this press release discloses details regarding the seismically mapped areal extent of the Puesto Quince prospect. For a discussion of the risks and the level of uncertainty associated with the potential recovery of resources from our interests in the Las Violetas concession, see our annual information form dated April 24, 2013.
Forward looking information: Certain information set forth in this document, including: the details of our proposed drilling program in Tierra del Fuego, including the number, type and location of wells to be drilled and the timing for commencement of drilling; the details of our proposed fracture stimulation program in the Los Flamencos natural gas pool; and the proposed timing for submitting our application to participate in the New Gas Natural Gas Incentive program and the anticipated terms of such program; is considered forward-looking information, 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 us), expropriation/nationalization of assets, price controls on commodity prices, inability to enforce contracts in certain circumstances, the potential for a sovereign debt default or a hyperinflationary economic environment, and other economic and political risks; loss of markets and other economic and industry conditions; volatility of commodity prices; currency fluctuations; and economic or industry condition changes.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits that we will derive therefrom. With respect to forward-looking information contained herein, the Company has made assumptions regarding: the general stability of the economic and political environment in Argentina; 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; the ability of the Company to obtain financing on acceptable terms when and if needed; 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 us are included in reports on file with Canadian securities regulatory authorities, including under the heading "Risk Factors" in our annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this document are made as of the date of this document, and we do 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.
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.
Crown Point Energy Inc.
President & CEO
Crown Point Energy Inc.
Arthur J.G. Madden
Vice-President & CFO
Crown Point Energy Inc.
Brian J. Moss
Executive Vice-President & COO