Crown Point Energy (TSX:V.CWV,Stock Forum) ran into emulsion blockage issues at its La Hoyada x-1 well which affected formation fluid inflow and stymieing efforts to improve performance during production testing and as a result the company has decided to shut down the well for the Argentine winter and return to it afterward to install pumping equipment and to conduct a long term production test.
According to the new release, production experience in the area has shown that with continuous pumping oil production, rates and volumes may improve as the effects of the emulsion blockage lessen.
The Calgary-based company has yet to receive full results of the lab work conducted on the drilling samples retreived from the penetrated Vaca Muerta shale in the La Hoyada well, however intial analysis indicates that the Vaca Muerta shales in the well have a total organic content ranging between 2-3%.
The release went on to note that tests were also carried out on a deeper interval in the PreCuyo Formation and on two shallower intervals in the Chachao and Agrio Formations respectively. All the aforementioned intervals tested dry with no fluid entry.
Crown Point Energy was in the news recently when the company announced quarterly financial results at the end of May.
Shares fell 44.18% on the news to $0.408 per share.
Currently there are 104.5m outstanding shares with a market cap of $42.6 million.