Crown Point Energy (TSX-V:CWV, StockForum), a Calgary-based oil and gas exploration firm engaged in identifying, acquiring and developing Argentinian oil and gas deposits, announced today that the company had drilled, logged, cased and rig-released the La Hoyada x-1 exploration well as a potential Vaca Muerta oil well in the Neuquen Basin, Province of Mendoza, Argentina.
According to the news release, the La Hoyada well went to a final depth of 1,953 metres and intersected persistent oil shows and gas while traveling through the Vaca Muerta formation, consisting of 125 metres shales and 84 metres embedded fractured igneous intrusives.
Company officials are of the belief that oil shows and background gas illustrates that the Vaca Muerta formation at Cerro de los Leones is mature and creating oil with analogous wells in the area indicating the fractured intrusive igneous rocks in the Vaca Muerta could act as a conventional fractured reservoir sourcing oil from the surrounding Vaca Muerta shale.
Crown Point has shipped the aforementioned Vaca Muerta drill samples off for laboratory analysis in order to obtain data on the total organic content and thermal maturity.
The company feels these drilling results confirm the conventional and unconventional potential of Vaca Muerta formation on Crown Point's wholly-owned Cerro de Los Leones Concession and notes that its geological model for Cerro has shown an area of 350 sq km in the oil generation window.
Crown Point Energy was in the news recently when the company announced the commencement of drilling at Cerro de Los Leones Concession.
Shares climbed 22.22% on the news to $0.55 per share.
Currently there are 104.5m outstanding shares with a market cap of $57.5 million.