Crown Point Energy Inc. (TSX: V.CWV, Stock Forum) said that it and its partners have obtained a 10-year extension of the El Valle exploitation concession to January 2026.
The El Valle exploitation concession, located in the San Jorge basin, is currently made up of five producing oil wells and one gas well.
According to the Crown Point Energy press release, the extension involved the negotiation of a number of financial and work commitments.
Financial commitments required the company to pay US$66,953 on Nov. 25, 2012 and will require two further payments of US$18,321 each to be made prior to Jan. 4, 2013 and July 3, 2013 respectively.
The extension also included a capital expenditure spending program of $9.3 million between 2013 and 2016, $8.8 million between 2017 and 2020, $5.1 million between 2021 and 2024 and $3.5 million between 2025 and 2026 for a total of $47.1 million.
Crown Point's share of these commitments is 50%.
Crown Point Energy is an international oil and gas exploration and development company operating in South America.
On Monday morning, Crown Point Energy was trading at $0.305 a share. The company has a market cap of $31.9 million, based on 104.5 million shares outstanding. The 52-week high and low was $1.46 and $0.305 respectively.