CALGARY, ALBERTA--(Marketwire - Dec 10, 2012) - Crown Point Energy Inc. (TSX VENTURE:CWV) ("Crown Point" or "the Company") is pleased to announce that it and its partners have obtained a 10 year extension of the El Valle (Lago del Desierto) Exploitation Concession to January 2026. The terms of the extension are set forth below:
El Valle Concession
On October 25, 2012, the Parliament of Santa Cruz Province issued Law 3293 approving the extension of El Valle Concession until January 2026. The extension involved the negotiation of a number of financial and work commitments. The financial commitments required the Company to pay (net to its interest) US$66,953 on November 25, 2012; two further payments of US$18,321 each will be made prior to January 4, 2013 and July 3, 2013. The extension also included the work commitments set forth in the table below on the Lago de Desierto (El Valle) UTE (100% working interest). Crown Point''s share of these commitments is 50%. Capital spending previously made by the Company has already fulfilled the 2011 and 2012 capital expenditure commitment:
|(in millions of $)(1)||2011 to 2012||2013 to 2016||2017 to 2020||2021 to 2024||2025 to 2026||Total|
|(1)||In the applicable agreements, the work commitments are expressed in US$. Crown Point has converted the US$ work commitment figures to Cdn$ using an exchange rate of US$1.00 = Cdn$1.00.|
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, Neuquén 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 information regarding Crown Point set forth in this document may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties, including information relating to the future payments and work commitments of Crown Point on its El Valle Concession. These forward-looking statements are based on numerous assumptions including but not limited to the following: drilling success, expectations with respect to future production levels, future capital expenditure levels, expectations of cash flow from operating activities, commodity prices, costs associated with capital expenditures, the availability of personnel and equipment when expected, the timely receipt of applicable regulatory and other governmental approvals, and the continuance of existing laws and regulations. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. 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 the following: 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 cost increases, 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, 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 to tax laws) and changes in how they are interpreted and enforced, political risks (including the risk of the expropriation of the Company''s assets), increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility.
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 that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf 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.
- Investment & Company Information
- capital expenditure
Murray D. McCartney
President & CEO
Crown Point Energy Inc.
Arthur J.G. Madden
Vice-President & CFO
Crown Point Energy Inc.
Brian J. Moss
Executive Vice-President & COO