|November 07, 2011|
TSX-V: CWV: Crown Point Ventures Ltd. ("Crown Point" or the "Company") is pleased to announce the ramp up of our drilling plans across four key concessions covering 288,000 net acres in Argentina's two most prolific basins - the Golfo San Jorge
and Neuquén Basins.
El Valle – San Jorge Basin
In January 2012 Crown Point plans to commence a steady drilling campaign with 10 to 24 wells to be drilled at El Valle over the next 24 months. The first 3-4 wells in this program will be focused on the drilling of oil development wells with multiple-zones in the Cañadón Seco and Caleta Olivia formations. A portion of this drilling program will also focus on exploration targets in the south west area of El Valle which shows promising leads on seismic.
Our current net production is approximately 600 bbls of oil per day with another estimated 400 bbls of oil per day behind pipe. Crown Point anticipates having 200 bbls of this behind pipe productive capacity on stream in the first quarter of 2012 with the balance coming on after facility enhancements and field electrification is completed.This will allow for the installation of some high volume progressive cavity pumps on some of the new wells.
Cañadón Ramirez – San Jorge Basin
Once the drilling of the prior El Valle program is completed the Company plans to move the drilling rig to its 100% interest Cañadón Ramirez Concession and drill a 2-3 well development program. Cañadón Ramirez is located on the North-West side of the San Jorge Basin. The wells are to be drilled on a 3-d seismically defined western extension of the Mata Magallanes Oeste Field. This pool extension had a confirming well bore drilled on it in 2008. Cañadón Ramirez is immediately to the West of Mata Magallanes Oeste Field which has produced 5.4 million barrels of oil. This concession, like many areas within Argentina, has easy access to existing infrastructure allowing production from this area to have a quick cycle time to market.
Laguna De Piedra - Neuquén Basin
At Laguna de Piedra, Crown Point plans on drilling one to two high impact exploration wells in the Neuquén Basin starting in the second quarter of 2012. Laguna de Piedra's primary targets are 3-D seismically defined targets focused on light oil objectives in the Punta Rosada and Quintuco Sandstones. Laguna De Piedra is located in the south flank of Neuquén basin close to the Flor de Roca field and South East of the Estación Fernandez Oro field.
Cerro Los Leones - Neuquén Basin
At Cerro Los Leones located in the North Neuquén Basin, Crown Point anticipates receiving the required environmental permits in the near term and plans to commence the shooting of its planned 3-D and 2-D programs shortly after receiving these permits in the first quarter of 2012. Drilling on various high impact conventional plays and the unconventional Vaca Muerta shale is expected to commence late in the second quarter of 2012 following interpretation and processing of the seismic data.
Initially, Crown Point plans to kick-off a two to four well drilling program targeting the Neuquén group, Vaca Muerta formation and the igneous intrusive rocks contained in the base of the Vaca Muerta on the western area of the concession and then drill an additional two to four wells targeting the Loncoche, Neuquén group, and Huitrin formation resource type plays located on the North East area of the concession. With multiple play types at Cerro Los Leones, Crown Point has the ability to ramp up its exploration and development programs post drilling results of these initial wells.
As part of the planned drilling Crown Point plans to evaluate the Unconventional Vaca Muerta shale via perforation and fracture stimulation operations on vertical wellbores initially. Following these initial prove-up operations, Crown will look to drill additional vertical and horizontal tests in the Vaca Muerta shale depending on the successful confirmation of key reservoir characteristics of the play.
Existing production in close proximity to Cerro Los Leones provides an understanding of the concessions exploration potential. The productive fields range from the Tertiary (Loncoche) to the Precuyo, with strong productive history of the Igneous intrusive in the Vaca Muerta immediately to the south of the concession in the Valle de Rio Grande oil pools. These pools have produced 89 million barrels of oil (current production is 5,200 bbls. of oil per day), from the igneous intrusives in the base of the Vaca Muerta. Other nearby fields include Llancanelo, the largest heavy oil accumulation in Argentina , as well as the Cerro Fortunoso field producing 3,250 bbls per day of oil, and Cajón de los Caballos with production of 483 bbls per day of oil.
Crown Point has a very active year planned for 2012, starting with a low risk ramp up of oil production and cash flow from our operations in the San Jorge Basin. Later in the first half Crown Point will commence the drilling of some high impact wells in Laguna de Piedra and Cerro Los Leones which have, based on production history from analogous nearby fields, the potential to deliver strong rates of production and reserves.
For inquiries please contact
Murray McCartney Arthur J.G. Madden
President & CEO Vice-President & CFO
Ph: (403) 232-1150 Ph: (403) 232-1150
Crown Point Ventures Ltd.
About Crown Point
This news release contains certain forward-looking statements, which are based on numerous assumptions including but limited to (i) drilling success; (ii) production; (iii) future capital expenditures; and (iv) cash flow from operating activities. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.