VANCOUVER, BRITISH COLUMBIA, Oct. 14, 2010 (Marketwire) --
Crown Point Ventures Ltd. (TSX VENTURE:CWV) (the "Company") is pleased
to announce that it has entered into an agreement to acquire a 49.9%
interest in a 307,000 acre exploration and production concession in the
Neuquen Basin in the Province of Mendoza. "We have been focused on
acquiring an opportunity of this magnitude since 2009," commented Murray
McCartney, CEO. "The exploration and development potential contained in
these lands is excellent. To put this in perspective, our interest in
the El Valle field in the Golfo San Jorge basin, where we have five
producing wells and a strong development drilling inventory, is 15,814
acres. The Neuquen block at 307,000 acres has seven distinct areas of
interest with play types ranging from anticlinal features in the deeper
western portion to the shallow resource type heavy oil plays on the
eastern side. It is an exciting acquisition."
Crown Point's interest in the block is being acquired from
several private Argentine companies for purchase consideration of
approximately CAD$1,000,000 of exploration and development expenses
(netapprox.$500,000) to be reimbursed and for the reservation to the
vendors of a 2.5% gross overriding royalty (net 1.25% to the CWV
interest). The terms of the concession provide for a state royalty of
16% and require the expenditure of CAD$13.85 million (net to CWV - $6.93
million) to be spent on 3-D seismic and drilling over a three year
To view accompanying map, please click on the following link: http://media3.marketwire.com/docs/CerroMap.jpg
Cerro de los Leones, as labeled in the map above, is
situated in the northern portion of the Neuquen Basin in the Province of
Mendoza, and has adjacent producing oil fields operated by YPF,
Occidental Petroleum and others. It is jointly being acquired with
another Canadian exploration and production company. The joint venture
agreement will provide for active roles for both companies in the
operation of the joint venture as well as in the management and
execution of the exploration and production activities. The two
companies are going to jointly execute the operations focusing on the
strengths which each company brings to the joint venture.
Mateo Turic, President of Crown Point's Argentina
operations reported on the timeline as follows, "We expect to close this
transaction within the next 30 days. After that, our first plans are to
obtain the necessary environmental approvals, which should occur by
January 2011, shoot a 3-D seismic program in the first half of 2011 and
drill the first wells later in 2011."
Mr. Turic continued, "The block is geologically diverse
with seven different exploration plays and prospects. The principal
geologic targets are contained in the Lower Tertiary and Cretaceous
Periods and focused on the Malargue, Neuquen, Huitrin and Vaca Muerta
Formations. Drilling depths on the block are expected to range from 800
metres on the eastern side to 2,500 metres in the South Western portion.
In this latter area, we anticipate wells with rates of initial
production of 350-500 bbls. of oil per day and reserves per well in
excess of 500,000 barrels per well. Pool size estimates are based on
nearby analogous fields that indicate we can expect to find unrisked
pool sizes ranging from 5-9 million barrels of oil per pool."
Crown Point continues to evaluate other growth
opportunities in Argentina. The successful conclusion of these would
continue to add new dimensions to Crown Point in Argentina and expand
the depth, breadth and size of our operations and asset base.
About Crown Point
Crown Point Ventures Ltd. is an oil and gas exploration,
development and production company with production in Argentina. The
Company's main activities are focused in the onshore Golfo San Jorge and
Neuquen Basins in Argentina.
This news release contains cert ain 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.
The statements in the second paragraph concerning the test
production rates from three different zones. Management cautions this
is a preliminary measure and could differ from actual production rates
when the well is placed on commercial production, and it is expected
that the production rates will be impacted by normal field decline
rates. Certain other information regarding Crown Point set forth in this
document, including management's assessment of Crown Point's future
plans and operations, number, type and timing of wells to be drilled,
the planning and development of certain prospects, production estimates,
and expected production growth may constitute forward-looking
statements under applicable securities laws and necessarily involve
substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond Crown Point's control,
including without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices,
environmental risks, inability to obtain drilling rigs or other
services, capital expenditure costs, including drilling, completion and
facility costs, unexpected decline rates in wells, wells not performing
as expected, delays resulting from or inability to obtain required
regulatory approvals and ability to access sufficient capital from
internal and external sources, the impact of general economic conditions
in Canada, Argentina, the United States and overseas, industry
conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are
interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, and stock market volatility and
market valuations of companies with respect to announced transactions
and the final valuations thereof. Readers are cautioned that the
foregoing list of factors is not exhaustive. Crown Point's actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or occur,
or if any of them do so, what benefits, including the amount of
proceeds, that the Company will derive there from. Readers are cautioned
that the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable to the
Company or persons acting on its beh alf are expressly qualified in
their entirety by these cautionary statements.
Additional information on these and other factors that
could affect Crown Point's operations and financial results are included
in reports on file with Canadian securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com) or Crown
Point's website (www.crownpointventures.ca).
The forward-looking statements contained in this document
are made as at the date of this news release and Crown Point does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by
applicable securities laws.
BOEs may be misleading, particularly if used in isolation.
A BOE conversion ratio of 6 Mcf: 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.
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
Crown Point Ventures Ltd.
President & CEO
Crown Point Ventures Ltd.
Arthur J.G. Madden
Vice-President & CFO
Crown Point Ventures Ltd.
Manager Investor Relations
SOURCE: Crown Point Ventures Ltd.