CWV Crown Point Energy Inc

Crown Point Energy Inc. (TSX VENTURE:CWV) ("Crown Point" or the "Company"), a
company focused on oil and gas development in the Austral and Neuquen Basins of
Argentina, today announced the completion of the sale of its 50% interest in the
El Valle Exploitation Concession ("El Valle") for consideration of approximately
US$525,000 to its former joint interest participants in El Valle. The purchase
price will be paid in 20 equal monthly installments commencing in August 2014.
This sale is part of an ongoing effort to focus human and capital resources on
areas that Company believes will provide the greatest return for our
shareholders and drive growth in the future.


In the first quarter of 2014, El Valle working interest production volumes
averaged 153 bopd, or 10.9% of Crown Point's average daily production volumes on
a boe/d basis. For the months of April and May, average daily oil production
volumes at El Valle had declined to approximately 120 bopd. El Valle has
continued to experience higher than predicted production declines and increasing
costs of operation which were increasingly damaging El Valle's financial
performance. In addition, Crown Point was engaged in various disputes with its
working interest partners at El Valle, some of which had become the subject of
formal arbitration proceedings. As part of the sale, all arbitration proceedings
have been discontinued and the parties have released one another from all
claims.


Crown Point and its joint venture participants had restricted capital
expenditures at El Valle due to the rising costs of operation and the lack of
economic exploration and development opportunities present on the concession. As
part of the sale agreement the purchasers have assumed Crown Point's US$13
million of net future capital commitments in respect of El Valle.


In the first quarter of 2014, revenues from El Valle totaled US$999,632 or 22%
of Crown Point's total revenues for the quarter (year ended December 31, 2013 -
US$6,029,997 or 28%) and operating netbacks from El Valle totaled US$362,838 or
18% of Crown Point's total revenues for the quarter (year ended December 31,
2013 - US$1,909,179 or 21%).


Crown Point's independent reserves report dated effective December 31, 2013 (the
"Reserves Report") assigned El Valle: gross proved developed producing reserves
of 90.2 Mboe (5% of Crown Point's gross proved developed producing reserves);
total gross proved reserves of 289.8 Mboe (8% of Crown Point's total gross
proved reserves); and total gross proved plus probable reserves of 777.2 Mboe
(13% of Crown Point's total gross proved plus probable reserves). The Reserves
Report assigned El Valle a net present value of future net revenue (before
income taxes and discounted at 15%) ("NPV") of: US$0.4 million on a proved
developed producing basis (4% of Crown Point's proved developed producing NPVs);
US$3.2 million on a total proved basis (16% of Crown Point's total proved NPVs);
and US$10.9 million on a total proved plus probable basis (25% of Crown Point's
total proved plus probable NPVs).


The Company's current efforts are focused principally on two areas in Argentina:
the Tierra del Fuego ("TDF") area in the Austral Basin for low risk natural gas
focused repeatable drilling and the Cerro de Los Leones Exploration Concession
in the Neuquen Basin for oil exploration. The current TDF 10 well drilling
program has to date resulted in two potential natural gas wells. The balance of
the 10 well program on the Las Violetas Exploitation Concession in TDF will
consist of six 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 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.


Crown Point expects that production additions from the TDF drilling and fracture
stimulation program commencing in July will result in rising production volumes
and field sales receipts from the TDF area. Financially, this is expected to
have a positive impact on the Company's net operating income as spot market
natural gas prices continue to rise in Argentina.


At Cerro de Los Leones, the Company has terminated testing operations on the La
Hoyada x-1 well due to winter conditions. Future plans for the well are to
install pumping equipment and to conduct a long term production test.


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 New Gas Subsidy Program that
has been applied for by Crown Point. The New Gas Subsidy Program provides an
incentive for producers to effectively earn higher gas prices for increases in
natural gas production above base production levels.


Crown Point continues to focus its efforts in the Austral and Neuquen Basins
where there is a history of delivering high quality reserves and production.
Crown Point is pursuing a strategy of organic growth through the drill bit and
growth through consolidation and acquisition.


The Company believes that Argentina represents a unique economic opportunity.
Argentina has a large hydrocarbon resource base capable of delivering increased
levels of production and reserves and also possesses a petroleum infrastructure
developed for historically higher levels of production.


Crown Point will focus on developing and growing its high quality asset base in
Argentina during a time of expected rising oil and gas prices. Argentine oil and
gas metrics and valuations, relative to other South American countries, continue
to be negatively impacted by macro-economic and political forces. The country
has an acute need for higher levels of production of natural gas and oil driven
by growing energy import deficits. The Argentine government has indicated that
it is committed to encouraging oil and gas development and production. Crown
Point believes that this commitment is evidenced by the rising domestic oil and
natural gas prices and the introduction of the New Gas Subsidy Program. Crown
Point believes that Argentina is also making the required political and economic
policy changes to improve the economy and to reduce its dependence on imported
natural gas. Crown Point views the Repsol/YPF settlement agreement and the New
Gas Subsidy Program as good examples of the ongoing changes in Argentina.


Crown Point believes that this continued process of positive change in the
economic and political landscape of Argentina is creating the potential for
substantially improved Argentine oil and gas metrics and valuations relative to
other countries. Growing Crown Point's production, reserve and asset base during
this time of economic change is the center of Crown Point's vision and strategy.


Crown Point's interests in the TDF area of the Austral Basin consist of a 25.78%
working interest in approximately 489,000 acres (126,000 net acres) pursuant to
three producing exploitation concessions, which include the Rio Cullen
Exploitation Concession, the La Angostura Exploitation Concession and the Las
Violetas Exploitation Concession. Crown Point's interests in the Cerro de Los
Leones area of the Neuquen Basin consists of a 100% working interest in an
approximate 306,646 acre area pursuant to the Cerro de Los Leones Exploration
Permit.


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 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.


Advisory

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. "boe/d" means barrels of oil equivalent
per day. "Mboe" means thousands of barrels of oil equivalent. "bopd" means
barrels of oil per day. "Mcf" means thousand cubic feet.


Non-IFRS Measures: This press release discloses "operating netbacks", which does
not have a standardized meaning under International Financial Reporting
Standards ("IFRS") and as such may not be comparable with the calculation of
similar measures used by other entities. 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 "Non-IFRS Measures" in the Company's most recent
management's discussion and analysis, which may be accessed through the SEDAR
website (www.sedar.com).


Forward-looking information: Certain information set forth in this document,
including: the Company's intent to focus on oil and gas development in the
Austral and Neuquen Basins of Argentina and the Company's belief that the focus
on these areas will provide the greatest return for our shareholders and drive
growth in the future; expected details and timing of the drilling and fracture
stimulation programs in the TDF area, including our belief that the drilling
program has resulted in two potential natural gas wells; our expectations that
production additions from the TDF drilling and the fracture stimulation program
commencing in July will result in rising production volumes and field sales
receipts from the TDF area; our expectation that production increases will have
a positive impact on the Company's net operating income as spot market natural
gas prices continue to rise in Argentina; future plans for the La Hoyada x-1
well; our belief that market conditions will continue to have a positive impact
on oil and natural gas prices in Argentina; our expectation to realize benefits
from certain new natural gas subsidy programs; our strategy for growth; our
expectations about future economic, financial and regulatory conditions for the
Argentina oil and gas industry, including our belief that the continued process
of positive change in the economic and political landscape of Argentina is
creating the potential for substantially improved Argentine oil and gas metrics
and valuations relative to other countries; and our strategy to grow Crown
Point's production, reserve and asset base; 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Crown Point Energy Inc.
Murray McCartney
President & CEO
(403) 232-1150
mmccartney@crownpointenergy.com


Crown Point Energy Inc.
Arthur J.G. Madden
Vice-President & CFO
(403) 232-1150
amadden@crownpointenergy.com


Crown Point Energy Inc.
Brian J. Moss
Executive Vice-President & COO
(403) 232-1150
bmoss@crownpointenergy.com
www.crownpointenergy.com

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