CROWN POINT VENTURES (V-CWV) $1.33 +0.21
Okay I take it back...all those months we thought that
Murray McCartney was becoming a slacker...what with Madalena
Ventures (MVN) creating all that excitement in Argentina
and Crown Point doing...well nothing?
Turns out he was quite busy after all as the deal with Antrim
Energy (AEN) and Crown Point now gives Crown Point a
much bigger presence in Argentina and makes it overnight,
one of the key players. (Apparently, the deal took almost a
year to put together). So far all the analysts like the deal, but
with work starting in a couple of weeks, we will be finding out
finally whether Crown Point has the goods...or not. So many
suggest that of all the shale plays in the world, Argentina is in
the “Big Three” along with China and the U.S., but for the rest
of this year Crown Point will become one of the major players.
Fred Kozak ups his target and writes:
• “High impact exploration and production acquired.
Through the acquisition of Antrim Energy’s Argentina
assets, Crown Point now has 100% of the Cerro Los
Leones block in the Neuquen Basin and has acquired a
25.78% interest in three blocks in the Austral Basin
which are producing approximately 1,500 boe/d net to
the company.
• Cerro Los Leones has exposure to both conventional
and unconventional Vaca Muerta exploration. Drilling
will be undertaken on this block in the second half of
2012 for both conventional and unconventional prospects.
• Believe Tierra del Fuego offers significant upside. While
the working interest is non-operated, the production
comes from only one block with the other two needing
more seismic to properly assess. We have not factored
these two blocks into our upside.”
Keith Schaefer of the Oil and Gas Investments Bulletin
adds in, “The size of the prize is now focused in one junior
public company, which will hopefully attract a lot more market
attention—it will have to, to chew through that extra stock
that Antrim shareholders have. It’s tough to say if those new
shareholders—who could essentially consider their CWV
stock FREE, with no cost base—will have some loyalty or
appetite to hold an Argentinean play or not. That’s the risk in
the deal, short term. Right now, in this market, I don’t see this transaction
creating a higher speculative premium without positive
drill results. If my market thesis is correct, in May a rising
market tide may lift all boats, but be prepared for the
stock to go sideways until positive news is made at
Cerro Los Leones.”