CWV: TSX.V
CALGARY,
AB, Oct. 31, 2024 /CNW/ - Crown Point Energy
Inc. (TSXV: CWV) ("Crown Point" or the "Company") is
pleased to announce that it has closed the previously announced
acquisition of a 100% operating interest in the Piedra Clavada and
Koluel Kaike hydrocarbon exploitation concessions (the "Santa
Cruz Concessions") from PAN AMERICAN ENERGY S.L., SUCURSAL
ARGENTINA (the "Seller").
The Santa Cruz Concessions are located in the Santa Cruz Province, on the southern flank
of Golfo San Jorge basin, approximately 200 km southwest of
Comodoro Rivadavia.
The Santa Cruz Concessions, comprising a total of 71,593 acres,
include Company owned extensive infrastructure in place capable of
handling larger than current production volumes, which averaged
production of 3,223 barrels per day ("bbl/d") during the first half
of 2024.
The purchase price payable by Crown Point to the Seller was
US$12,000,000 cash base
consideration, subject to closing adjustments, plus certain
contingent in-kind consideration that is payable throughout a
fifteen-year period following the closing date. With respect to the
in-kind consideration, Crown Point will deliver to the Seller a
monthly quantity of oil produced from the Santa Cruz Concessions
that may range from zero up to 600 bbl/d, subject to the oil
market price so determined for each month. The effective date of
the acquisition is January 1,
2024.
Crown Point funded the base cash portion of the purchase price
using its existing cash resources, operating cash flows, and
proceeds from the previously announced debt financing that closed
on October 30.
For further information regarding the Santa Cruz Concessions,
include reserves information, see the press release issued by the
Company on April 15, 2024.
About Crown Point
Crown Point is an international oil and gas exploration and
development company incorporated in Alberta, Canada, trading on the TSX Venture
Exchange and operating in Argentina. Crown Point's exploration and
development activities are focused in four producing basins in
Argentina, the Austral basin in
the province of Tierra del Fuego, the Neuquén and Cuyano basins in
the province of Mendoza, and the Golfo San Jorge basin in the
province of Santa Cruz. 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.
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.
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SOURCE Crown Point Energy Inc.