CALGARY, ALBERTA--(Marketwired - Feb. 12, 2014) - Crown Point Energy Inc. (TSX VENTURE:CWV) ("Crown Point" or "the Company") is pleased to announce that it has drilled, logged, cased and rig released the La Hoyada x-1 exploration well as a potential Vaca Muerta oil discovery on the Cerro de los Leones Concession in the Neuquén Basin, Province of Mendoza, Argentina.
The La Hoyada x-1 well was drilled to a total depth of 1,953 meters and encountered persistent oil shows and gas while drilling through the Vaca Muerta formation which consisted of 125 meters of shale and 84 meters of imbedded fractured igneous intrusives.
Crown Point believes that the presence of the oil shows and background gas demonstrates that the Vaca Muerta formation at Cerro de los Leones is mature and generating oil. Analogous wells in the area indicate that the fractured intrusive igneous rocks in the Vaca Muerta could function as a conventional fractured reservoir sourcing oil from the surrounding Vaca Muerta shale. Interpretation of samples and logs indicate that 36 meters of the total 84 meters of intrusives were highly fractured and had the best live oil shows during drilling.
Similar igneous intrusives in the Mendoza portion of the Northern Neuquén basin are recognized as significant hydrocarbon reservoirs having produced over 26 million barrels of oil to date from areas surrounding Cerro de los Leones.
Additional secondary targets in the well include a 5 meter thick fractured limestone layer at the bottom of the Chachao Formation and several fractured igneous intrusives in the Agrio Formation all with oil and gas shows and full gas chromatography.
Crown Point has sent the Vaca Muerta drilling samples for laboratory analysis to obtain information on total organic content and thermal maturity. The Company is commencing to design a completion program for the La Hoyada well.
A potential analogy to the La Hoyada well is the Vega del Sol well x-1, located on the Cerro de los Leones Concession 4 Km. to the northwest of La Hoyada. This well was drilled in 1995 by YPF and encountered the Vaca Muerta 150 meters structurally lower than the La Hoyada well. It was completed in intrusive igneous rocks penetrating the Chachao formation and production tested at rates between 300 and 400 barrels of oil per day. Due to problems with the well cementation program it was subsequently suspended and abandoned by YPF.
Crown Point believes that this drilling result is confirmation of the conventional and unconventional potential of the Vaca Muerta formation on Crown Point's 100% interest 314,000 acre Cerro de Los Leones Concession. Crown Point's geological model at Cerro de Los Leones has indicated an area of 350 km2 in the oil generation window.
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.
Advisories
Analogous Information: Certain information contained herein is considered "analogous information" as defined in National Instrument 51-101 - Standards of Disclosure of Oil and Gas Activities ("NI 51-101"). Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. In particular, this press release: notes that analogous wells in the area indicate that the fractured intrusive igneous rocks in the Vaca Muerta could function as a conventional fractured reservoir sourcing oil from the surrounding Vaca Muerta shale; notes that similar igneous intrusives in the Mendoza portion of the Northern Neuquén basin are recognized as significant hydrocarbon reservoirs having produced over 26 million barrels of oil to date from areas surrounding Cerro de los Leones; and provides details of the potentially analogous Vega del Sol well x-1 located on the Cerro de los Leones Concession 4 Km. to the northwest of La Hoyada, including production test rate information. Such information is based on independent public data and public information recently obtained from government sources (including the public data base maintained by the Secretary of Energy in Argentina) and the Company has no way of verifying the accuracy of such information and cannot determine whether the source of the information is independent. Such information has been presented to help demonstrate that hydrocarbons may be present in commercially recoverable quantities in the Company's area of interest. There is no certainty that such results will be achieved by the Company and such information should not be construed as an estimate of future reserves or resources or future production levels.
Anticipated Information: Certain information contained herein may be considered to be "anticipated information" as defined in NI 51-101. In particular, this press release discloses details regarding the thickness of certain formations identified when drilling the well and the potential aerial extent of the oil generation window at Cerro de Los Leones. For a discussion of the risks and the level of uncertainty associated with the potential recovery of resources from our interests in the Cerro de Los Leones concession, see our annual information form dated April 24, 2013.
Forward looking information: Certain information set forth in this document, including: our belief that the La Hoyada x-1 well is a potential Vaca Muerta oil discovery well; our belief that the presence of oil shows and background gas demonstrates that the Vaca Muerta formation is mature and generating oil; the possibility that the fractured intrusive igneous rocks in the Vaca Muerta could function as a conventional fractured reservoir sourcing oil from the surrounding Vaca Muerta shale; our belief that samples and logs indicate that 36 meters of the total 84 meters of intrusives were highly fractured and had the best live oil shows during drilling; statements regarding the qualities, characteristics and production performance of similar igneous intrusives in the Mendoza portion of the Northern Neuquén basin and what that analogous information could mean for our interest in the Cerro de los Leones concession; the additional secondary targets identified herein; our intention to design a completion program for the well; statements regarding the qualities, characteristics and production performance of the Vega del Sol well x-1 and what that analogous information could mean for our well; our belief that this drilling result is confirmation of the conventional and unconventional potential of the Vaca Muerta formation on Crown Point's Cerro de Los Leones concession; and the potential areal extent of the oil generation window at Cerro de Los Leones; 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 us), expropriation/nationalization of assets, price controls on commodity prices, inability to enforce contracts in certain circumstances, the potential for a sovereign debt default or a hyperinflationary economic environment, and other economic and political risks; loss of markets and other economic and industry conditions; volatility of commodity prices; currency fluctuations; 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 we will derive therefrom. With respect to forward-looking information contained herein, the Company has made assumptions regarding: the general stability of the economic and political environment in Argentina; 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; the ability of the Company to obtain financing on acceptable terms when and if needed; 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 us are included in reports on file with Canadian securities regulatory authorities, including under the heading "Risk Factors" in our annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this document are made as of the date of this document, and we do 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.