Crown Point Energy (TSX-V:CWV, StockForum), a Calgary-based oil and gas exploration firm engaged in the identification, acquisition and development of oil and gas deposits in Argentina, announced today that the company had signed a drilling contract with San Antonio International to supply a drilling rig for the initial ten well drilling program scheduled for Tierra del Fuego in which Crown Point holds 25.78% working interest.
According to the news release, the drilling rig is anticipated to arrive at Tierra de Fuego in March with actual operations on the Las Violetas concession expected to take place in early April. The term of the contract limited to one year with provisions for extending the term.
The company's program will consist of eight development wells in the Los Flamencos gas pool and two other exploration wells, one on the Puesto Quince prospect and the other near the southern San Luis natural gas pool.
Also, simultaneously with the start of drilling operations, a fracture simulation program will be carried out on four producing wells in the Los Flamencos natural gas pool and one well in the San Luis Field.
The release went on to note that, “Crown Point in March will be re-submitting its application to participate in the New Gas Natural Gas Incentive program. This program provides financial incentives to producers who increase their production of natural gas. Incremental natural gas production above an agreed production decline curve can receive up to $7.50/mcf under the program.”
Crown Point was in the news recently when the company cased its La Hoyada well and shares jumped 22%.
Shares climbed 8.70% on the news to $0.75 per share.
Currently there are 104.5m outstanding shares with a market cap of $78.4 million.