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The Company wishes to announce that the first two wells in the new drilling season at Sinclair
Manitoba have been drilled, completed, and both wells exceeded management expectations in
their five day initial production tests.
The wells are netting over 50 barrels of oil per day to the Company interests which, at current
sale price conditions translate to about $100,000 per month to earnings.
A third well is being drilled now and a fourth is scheduled for September. It is management’s
plan to complete eight wells in this new area by January. Budget for the development of these
wells is about $1,700,000 cost to Crown Point of which $710,000 has been paid and the balance
will be generated from cash flow.
The Company project northeast of Houston, Texas, (called the North Cleveland project) is
scheduled to spud next week. Crown Point has paid 8% of cost to earn a 6% working interest in
the initial test well. The lease comprises of over 1,200 acres and carries considerable shallow
production.
The Company well will test the depths from about 9,000 feet to 11,000 feet. 3-D seismic has
indicated positive structure for hydrocarbon accumulation in at least three sands in the lands at
that depth.
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