|By Marketwired .||
|May 28, 2014 07:05 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 05/28/14 -- Crown Point Energy Inc. ("Crown Point" or the "Company") (TSX VENTURE:CWV) today announces its operating and financial results for the three months ended March 31, 2014. Copies of the Company's unaudited condensed interim consolidated financial statements and related Management's Discussion and Analysis ("MD&A") are being filed with Canadian securities regulatory authorities and will be made available under the Company's profile at www.sedar.com and on the Company's website at www.crownpointenergy.com. All dollar figures are expressed in United States dollars unless otherwise stated.
FINANCIAL AND OPERATING HIGHLIGHTS
"During the first quarter Crown Point focused on advancing initiatives designed to grow production and capture exploration upside from our core operating regions," said Murray McCartney, CEO of Crown Point Energy. "In the near-term, our core objectives include drilling additional wells in our 10-well development and exploration drilling program at Tierra del Fuego and completing and testing the La Hoyada x-1 exploration well at Cerro de Los Leones to assess its potential as conventional Vaca Muerta discovery."
-- Cerro de Los Leones: Drilled, logged and cased the La Hoyada x-1 exploration well as a potential conventional Vaca Muerta oil discovery. Completion operations for the La Hoyada x-1 well commenced in late May. -- Tierra del Fuego: Signed a drilling contract with San Antonio International to provide a drilling rig for our initial 10 well drilling program. Contract is extendable for three years. The first well drilled LF-1008 has been cased as a potential natural gas well with 11 metres of gross sand in the Springhill. -- Argentina New Gas Incentive Program: On March 30, 2014, Crown Point submitted to the Argentine Government its formal proposal for participation in the New Gas Incentive Program for smaller companies announced in November 2013. -- Average Daily Sales Volumes: 1,571 BOEPD. -- Operating Netback per BOE: $14.19. Q1 FINANCIAL AND OPERATING RESULTS Results for the three months ended March 31, 2014 include: -- Average Daily Sales Volumes: 1,571 BOEPD for the three months ended March 31, 2014, as compared to 1,994 BOEPD for the three months ended March 31, 2013. This decrease was in part a result of the termination of NGL exports in mid-May 2013 in connection with the Company's decision to leave the majority of NGL production in the gas stream, the effect of staged compressor maintenance and natural declines in oil and gas production. -- Operating Netback per BOE: $14.19 for the three months ended March 31, 2014, as compared to $15.53 for the three months ended March 31, 2013. Total Company operating netbacks decreased in the 2014 period compared to the 2013 period due mainly to a decrease in NGL and gas prices earned in the 2014 period which were partially offset by lower royalties and operating costs. -- Funds Flow From Operations: $0.75 million for the three months ended March 31, 2014, compared to $2.32 million for the three months ended March 31, 2013. The Company did not receive any proceeds from the sale of Petroleo Plus Credits in the 2014 period as compared to $1.2 million received and recognized in the 2013 period. Operating Netbacks - Total Company ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months ended March 31 2014 2013 ---------------------------------------------------------------------------- Total sales volumes (BOE) 141,430 179,461 Average daily sales volumes (BOEPD) 1,571 1,994 Per BOE Per BOE --------- --------- Total oil and gas revenue ($) 4,443,425 31.42 6,384,168 35.57 Total royalties ($) (827,858) (5.85) (1,242,077) (6.92) Total operating costs ($) (1,609,201) (11.38) (2,354,872) (13.13) ---------------------------------------------------------------------------- Total operating netback ($) 2,006,366 14.19 2,787,219 15.53 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
CERRO DE LOS LEONES, NEUQUEN BASIN, ARGENTINA
The Company's 100% interest in the Cerro de Los Leones exploration concession covers approximately 306,646 acres in the Mendoza portion of the Neuquen Basin.
On February 12, 2014 the Company announced that it had drilled, logged, cased and rig released the La Hoyada x-1 exploration well as a potential Vaca Muerta oil discovery. The La Hoyada x-1 well was drilled to a total depth of 1,953 metres and encountered persistent oil shows and gas while drilling through the Vaca Muerta formation which consisted of 125 metres of shale and 84 metres of imbedded fractured igneous intrusives. Completion operations on the La Hoyada well commenced in late May. If the well is successfully completed it will be placed on a production test with the potential for further drilling at Cerro de Los Leones later in 2014.
TIERRA DEL FUEGO, ARGENTINA
The Company's 25.78% working interest in the Tierra del Fuego area of Argentina covers approximately 489,000 acres (126,000 net acres) in the Austral Basin and includes the Las Violetas, Angostura Sur and Rio Cullen exploitation concessions. The primary term of all three concessions expires in November 2026.
Crown Point's Tierra del Fuego Concessions are high quality natural gas weighted assets possessing the capability to deliver increased levels of production and reserves in an expected increasing natural gas price market.
Drilling of the first well of the initial ten well program commenced on May 8, 2014. The well has been drilled to total depth and has been cased as a potential gas well. The well encountered approximately 11 metres of sand in the Springhill formation. Drilling of the second well LF-1027 is expected to commence in a few days.
Commencing late in June, a fracture stimulation program will be performed on four producing wells in the Los Flamencos natural gas pool. A similar program undertaken in 2010 significantly improved deliverability from five wells in the Los Flamencos pool.
The Company's efforts over the next few quarters will be focused principally on two areas in Argentina: Tierra del Fuego for lower risk natural gas focused repeatable drilling and Cerro de Los Leones for completion and testing of the La Hoyada X-1 exploration well, the first in a potential high impact oil exploration program in the Neuquen basin.
Management expects that production additions from the drilling and fracture stimulation program will commence in July and, as a result, management expects to see rising production volumes and field sales receipts through to the end of the year. Financially, this is expected to have a positive impact on the Company's income statement as spot market natural gas prices continue to rise in Argentina. The balance of the 10 well program on the Las Violetas Exploitation Concession will consist of seven more 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 to the northeast of the Los Flamencos and Los Patos producing pools and is adjacent to the Rio Chico gas pool. The feature has a seismically mapped aerial 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.
At Cerro de Los Leones the Company has commenced completion operations on the La Hoyada x-1 well. If the completion operations are successful, the Company plans to place the well on a production test with the potential for further drilling at Cerro de Los Leones in late 2014.
Oil price realizations in Argentina were temporarily impacted by the peso devaluation and economic conditions during the first quarter of 2014. In May, oil prices were negotiated to be greater than the price received prior to the peso devaluation of early 2014, or approximately $9 per barrel greater than the price realized in the first quarter. The Company believes market conditions will continue to have a positive impact on oil and natural gas prices as there is not sufficient hydrocarbon production in Argentina to meet the demand for energy consumption in the country. The Company also expects to realize benefits from the Gas Plan II natural gas subsidy program that has been applied for by Crown Point. This new hydrocarbon subsidy program provides an incentive for producers to effectively earn higher gas prices for increases in natural gas production above base production levels.
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.
Certain Oil and Gas Disclosures: Barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 Mcf) to one barrel (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. In addition, given that the value ratio based on the current price of crude oil in Argentina as compared to the current price of natural gas in Argentina is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. "BOEPD" means barrels of oil equivalent per day. "Mcf" means thousand cubic feet. "Mbbls" means thousands of barrels.
Non-IFRS Measures: This press release discloses "funds flow from operations" and "operating netbacks", which do not have standardized meanings under International Financial Reporting Standards ("IFRS") and as such may not be comparable with the calculation of similar measures used by other entities. Funds flow from operations should not be considered an alternative to or more meaningful than, cash flow from operating activities as determined in accordance with IFRS as an indicator of the Company's performance. Management uses funds flow from operations to analyze operating performance and considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate cash necessary to fund future capital investment. A reconciliation of funds flow from operations to cash flow from operating activities is presented in the MD&A under "Non-IFRS Measures". Operating netbacks are calculated on a per unit basis as oil, natural gas and natural gas liquids revenues less royalties, transportation and operating costs. Management believes this measure is a useful supplemental measures of the Company's profitability relative to commodity prices. See "Operating Netbacks - Total Company".
Forward looking information: Certain information set forth in this document, including: our belief that the La Hoyada x-1 well is a potential Vaca Muerta oil discovery; our intention to perform a fracture stimulation program on four producing wells in the Los Flamencos natural gas pool and the timing thereof and our expectations for the results thereof; the ability of our first quarter initiatives to grow production and capture exploration upside from our core operating regions; our core objectives to drill additional wells in our 10-well development and exploration drilling program at Tierra del Fuego ("TDF") and complete and test the La Hoyada x-1 exploration well at Cerro de Los Leones to assess its potential as a conventional Vaca Muerta discovery; our belief that the LF-1008 well is a potential natural gas well and our expectations regarding when completion operations will commence; our belief that our interests in the TDF area possess the capability of delivering increased levels of production and reserves in an expected increasing natural gas price market; our expectation that a second well will commence drilling at TDF in a few days; our expectation that if the La Hoyada x-1 well is successfully completed it will be placed on a production test with the potential for further drilling at Cerro de Los Leones later in 2014; our intention to focus our efforts over the next few quarters principally on TDF for lower risk natural gas focused repeatable drilling and Cerro de Los Leones for completion and testing of the La Hoyada x-1 exploration well, the first in a potential high impact oil exploration program in the basin; the details of our initial 10 well drilling program on the Las Violetas Exploitation Concession at TDF, including the type and general location of wells to be drilled; our expectation that production additions from the drilling and fracture stimulation program at TDF will commence in July, that we will see rising production volumes and field sales receipts through to the end of the year, and that this will have a positive impact on our income statement as spot market natural gas prices continue to rise in Argentina; our belief that if we access the New Gas Subsidy Program it could further increase pricing received; and our belief that market conditions will continue to have a positive impact on oil and natural gas prices; 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 Crown Point), 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; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling services; incorrect assessment of value of acquisitions and failure to realize the benefits therefrom; delays resulting from or inability to obtain required regulatory approvals; the lack of availability of qualified personnel or management; stock market volatility and ability to access sufficient capital from internal and external sources; 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 so, what benefits that Crown Point will derive therefrom. With respect to forward-looking information contained herein, the Company has made assumptions regarding: the impact of increasing competition; 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 to complete the Company's capital expenditure program; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms when and if needed; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration activities; 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 Crown Point are included in reports on file with Canadian securities regulatory authorities, including under the heading "Risk Factors" in the Company's annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking information contained in this document are made as of the date of this document, and Crown Point does 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
(403) 232-1158 (FAX)
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Apr. 25, 2017 10:30 PM EDT Reads: 1,829
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 25, 2017 10:30 PM EDT Reads: 561
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Apr. 25, 2017 10:30 PM EDT Reads: 7,106
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 25, 2017 10:15 PM EDT Reads: 1,155
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 25, 2017 10:15 PM EDT Reads: 1,268
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Apr. 25, 2017 10:00 PM EDT Reads: 3,686
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Apr. 25, 2017 09:45 PM EDT Reads: 1,240
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 25, 2017 08:30 PM EDT Reads: 2,487
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Apr. 25, 2017 08:15 PM EDT Reads: 486
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
Apr. 25, 2017 07:45 PM EDT Reads: 1,750
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls ...
Apr. 25, 2017 07:15 PM EDT Reads: 3,098
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
Apr. 25, 2017 06:15 PM EDT Reads: 1,154
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Apr. 25, 2017 06:15 PM EDT Reads: 2,186
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
Apr. 25, 2017 06:15 PM EDT Reads: 333
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 25, 2017 06:15 PM EDT Reads: 960