Crown Point Announces Financial and Operating Results for the Three Months Ended March 31, 2013

CALGARY, ALBERTA--(Marketwired - May 28, 2013) - Crown Point Energy Inc. (TSX VENTURE:CWV) ("Crown Point" or the "Company") today announces its operating and financial results for the three months ended March 31, 2013. Copies of the Company's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2013 and the related Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2013 have been filed with Canadian securities regulatory authorities and will be made available under the Company's profile at www.sedar.com and on the Company's website at www.crownpointenergy.com. All amounts are in Canadian '$' unless otherwise stated.

FINANCIAL AND OPERATING RESULTS

Results for the three months ended March 31, 2013 include:

• Average Sales Volumes: 1,994 BOEPD for the three month period ended March 31, 2013, as
  compared to 2,053 BOEPD for the previous four month period ended December 31, 2012 and 335 BOEPD for the comparative three month period ended February 29, 2012 (1).
• Operating Netback per BOE: $15.70 for the three month period ended March 31, 2013, as
  compared to $15.65 for the previous four month period ended December 31, 2012 and $36.65 for the comparative three month period ended February 29, 2012 (1). As Tierra del Fuego volumes, which are largely natural gas, are not included in the February 29, 2012 period, the operating netback is higher for the February 29, 2012 period as natural gas volumes earn a lower operating net back than oil volumes.
• Funds Flow From Operations: $2.65 million for the three month period ended March 31,
  2013, as compared to $2.57 million for the previous four month period ended December 31, 2012 and $0.1 million for the comparative three month period ended February 29, 2012 (1).
• Petroleo Plus Payment: In March 2013, Crown Point received its first cash proceeds of US$1.25 million from the sale of Petroleo Plus credits derived from the Petroleo Plus Program which was established to encourage oil development.

(1) Financial and operating results for the three month period ended February 29, 2012 do not include results from the Tierra del Fuego area as the Company's interests in the area were not acquired until May 28, 2012.

OPERATIONS

TIERRA DEL FUEGO, ARGENTINA

The Company's 25.78% working interest in the Tierra del Fuego ("TDF") area of Argentina covers approximately 489,000 acres (126,000 net acres) in the Austral Basin and includes the Las Violetas, Angostura Sur and Rio Cullen exploitation concessions. The primary term of all three concessions expires in November 2016; however, the Company and its partners have negotiated a ten year extension (to November 2026) with the provincial government authorities of TDF. The extension and its terms are currently awaiting ratification by the provincial legislature.

Crown Point's TDF concessions are high quality natural gas weighted assets possessing the capability to deliver increased levels of production and reserves in an expected increasing natural gas price market.

NEW GAS INCENTIVE IMPACT ON CROWN POINT

On January 18, 2013, the Government of Argentina issued a resolution to increase the price to US$7.50/MMbtu (approximately US$7.75/Mcf) for natural gas production in excess of a "base" production rate determined for each company (the "New Gas Incentive"). The New Gas Incentive provides that participating companies will receive, on a payment basis to be determined from the National Government, cash compensation equal to the difference between US$7.50/MMbtu (approximately US$7.75/Mcf) and the price received for gas produced in excess of the base production rate. Certain details are still pending to fully clarify how the New Gas Incentive will be implemented. The implementation of this program or one similar may have a significant and positive impact on Crown Point's capital programs and its financial netbacks from production from the TDF concessions.

In the event that Crown Point and its joint venture partners participate in the "New Gas" program, it is likely that the TDF capital spending plans would be revised to include additional drilling and 3D seismic acquisition designed to accelerate growth in production and reserves.

DEVELOPMENT AND DRILLING PLANS

Development and drilling operations will commence in TDF after the ten year extension to 2026 has been approved.

The Company plans to acquire additional 3D seismic on the Las Violetas, Angostura Sur and Rio Cullen concessions starting in 2014. The proposed Las Violetas 3D seismic program is designed to fully evaluate and identify drilling targets over areas and trends, which have been mapped using older 2D seismic. The Angostura Sur and Rio Cullen seismic programs are following up exploration leads from existing 2D seismic and geological information.

CERRO DE LOS LEONES, NEUQUEN BASIN, ARGENTINA

The Company's 100% interest in the Cerro de Los Leones exploration concession covers approximately 306,646 acres in the Mendoza portion of the Neuquén Basin.

EXPLORATION, DEVELOPMENT AND DRILLING PLANS

Crown Point has completed the Cerro de los Leones seismic programs comprised of 122 kilometers of 2D seismic and 143 square kilometers of 3D seismic. Field recording of both seismic programs has been completed, the processing of data is nearing completion and interpretation of the data has commenced. The total cost of the two seismic programs is estimated to be $6 million.

Drilling on various conventional plays is expected to commence in late 2013, following interpretation of the seismic programs. Information obtained from these wells will assist Crown Point in determining the economic viability of the Vaca Muerta shale play on the Cerro de Los Leones concession. A second 3D seismic program is planned for the eastern portion of the concession targeting both structural plays and stratigraphic resource type plays. This program may be shot in 2014 and would be followed up with the drilling of one to two wells targeting the above mentioned plays.

Following the initial drilling phase, Crown Point may consider additional exploration and development drilling in the area, including the possibility of drilling vertical and horizontal tests in the Vaca Muerta shale play.

EL VALLE, SAN JORGE BASIN, ARGENTINA

Crown Point has identified additional drilling locations in this pool and is in the early conceptual planning stage of a waterflood secondary recovery scheme to increase reservoir pressure and the ultimate reserve recovery of the pool. Waterflood secondary recovery schemes are used throughout the San Jorge Basin and consistently demonstrate improved rates of production and higher ultimate recoveries of oil in place from equivalent reservoirs.

About Crown Point

Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in Calgary, Canada, incorporated in Canada, trading on the TSX Venture Exchange and operating in South America. Crown Point's exploration and development activities are focused in the Golfo San Jorge, Neuquén and Austral basins in Argentina. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a basis for future growth.

Advisory

Certain Oil and Gas Disclosures: Barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 Mcf) to one barrel (1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil in Argentina as compared to the current price of natural gas in Argentina is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. "BOEPD" means barrels of oil equivalent per day. "MMBtu" means million British thermal units. "Mcf" means thousand cubic feet. "2D" means two dimensional. "3D" means three dimensional.

Non-IFRS Measures: This press release discloses "funds flow from operations" and "operating netbacks", which do not have standardized meanings under International Financial Reporting Standards ("IFRS") and as such may not be comparable with the calculation of similar measures used by other entities. Funds flow from operations should not be considered an alternative to or more meaningful than, cash flow from operating activities as determined in accordance with IFRS as an indicator of the Company's performance. Management uses funds flow from operations to analyze operating performance and considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate cash necessary to fund future capital investment. A reconciliation of funds flow from operations to cash flow from operating activities is presented in the MD&A. Operating netbacks are calculated on a per unit basis as oil, natural gas and natural gas liquids revenues less royalties, transportation and operating costs. Management believes this measure is a useful supplemental measures of the Company's profitability relative to commodity prices.

Forward looking information: Certain information set forth in this document, including: (i) with respect to our TDF concessions: our belief that our interests in the area possess the capability of delivering increased levels of production and reserves in an expected increasing natural gas price market; our belief that the implementation of the New Gas Incentive program or one similar may have a significant and positive impact on our capital programs and our financial netbacks from production from the TDF concessions; our belief that if we and our joint venture partners participate in the New Gas Incentive program, it is likely that the TDF capital spending plans would be revised to include additional drilling and 3D seismic acquisition designed to accelerate growth in production and reserves; our intention that development and drilling operations will commence in TDF after the ten year extension to 2026 has been approved, and our belief that approval will ultimately be obtained; our plan to acquire additional 3D seismic on the Las Violetas, Angostura Sur and Rio Cullen concessions starting in 2014 and the objectives of the seismic program; (ii) with respect to our Cerro de Los Leones concession: the estimated total cost of the two seismic programs being completed on the concession; our belief that drilling on various conventional plays in the concession is expected to commence in late 2013 and our belief that information obtained from these wells will assist us in determining the economic viability of the Vaca Muerta shale play on the concession; that a second 3D seismic program is planned for 2014 for the eastern portion of the concession targeting both structural plays and stratigraphic resource type plays, and that the program would be followed up with the drilling of one to two wells targeting the aforementioned plays; that following the initial drilling phase, we may consider additional exploration and development drilling in the area, including the possibility of drilling vertical and horizontal tests in the Vaca Muerta shale play; and (iii) with respect to our El Valle concessions: our intention to drill additional wells in the area; our intention to undertake a waterflood secondary recovery scheme to increase reservoir pressure and the ultimate reserve recovery of the pool; and our belief that a waterflood secondary recovery scheme can improve rates of production and result in higher ultimate recoveries of oil in place; is considered forward-looking information, and necessarily involve risks and uncertainties, certain of which are beyond Crown Point's control.

Such risks include but are not limited to: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; risks associated with operating in Argentina, including risks of changing government regulations (including the adoption of, amendments to, or the cancellation of government incentive programs or other laws and regulations relating to commodity prices, taxation, currency controls and export restrictions, in each case that may adversely impact Crown Point), expropriation/nationalization of assets, price controls on commodity prices, inability to enforce contracts in certain circumstances, the potential for a sovereign debt default, and other economic and political risks; loss of markets and other economic and industry conditions; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling services; incorrect assessment of value of acquisitions and failure to realize the benefits therefrom; delays resulting from or inability to obtain required regulatory approvals; the lack of availability of qualified personnel or management; stock market volatility and ability to access sufficient capital from internal and external sources; and economic or industry condition changes.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits that Crown Point will derive therefrom. In addition, the information relating to reserves is deemed to be forward-looking information, as such information involves the implied assessment, based on certain estimates and assumptions, that the reserves described can be economically produced in the future. With respect to forward-looking information contained herein, the Company has made assumptions regarding: the impact of increasing competition; the general stability of the economic and political environment in which the Company operates; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the costs of obtaining equipment and personnel to complete the Company's capital expenditure program; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms when and if needed; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration activities; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, commodity price controls, import/export matters, taxes and environmental matters in Argentina; and the ability of the Company to successfully market its oil and natural gas products. Additional information on these and other factors that could affect Crown Point are included in reports on file with Canadian securities regulatory authorities, including under the heading "Risk Factors" in the Company's annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking information contained in this document are made as of the date of this document, and Crown Point does not undertake any obligation to update publicly or to revise any of the included forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities law.