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Crown Point Announces Operating and Financial Results for the Three and Nine Months Ended September 30, 2020

Written by Customer Service on . Posted in Public Companies.

CALGARY, Alberta, Nov. 25, 2020 (GLOBE NEWSWIRE) — TSX-V: CWV: Crown Point Energy Inc. (“Crown Point”, the “Company” or “we“) today announced its operating and financial results for the three and nine months ended September 30, 2020.Copies of the Company’s unaudited condensed interim consolidated financial statements and management’s discussion and analysis (“MD&A”) filings for the three and nine months ended September 30, 2020 are being 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 dollar figures are expressed in United States dollars (“USD”) unless otherwise stated. References to “ARS” are to Argentina Pesos.In the following discussion, the three and nine month periods ended September 30, 2020 may be referred to as “Q3 2020” and “the September 2020 period”, respectively, and the comparative three and nine month periods ended September 30, 2019 may be referred to as “Q3 2019″ and “the September 2019 period”, respectively.Q3 2020 SUMMARYDuring Q3 2020, the Company:Reported net cash from operating activities of $0.03 million and funds flow used by operating activities of $0.5 million;Earned $2.4 million of oil and natural gas sales revenue on average daily sales volumes of 1,240 BOE per day, down from $9.6 million of oil and natural gas sales revenue earned on average daily sales volumes of 2,518 BOE per day in Q3 2019 due to lower production from natural gas wells due to natural decline rates combined with delivery restrictions at the Cruz del Sur terminal that required the UTE to shut-in the San Martin field from March 24, 2020 to September 4, 2020;Received an average of $2.46 per mcf for natural gas and $30.99 per bbl for oil compared to $3.56 per mcf for natural gas and $53.83 per bbl for oil received in Q3 2019;Reported an operating netback of $4.17 per BOE, down from $21.08 per BOE in Q3 2019 due to lower sales volumes and the drop in oil and natural gas prices in Argentina combined with overall higher per BOE operating costs due to the decrease in sales volumes;Commenced the transport of oil through the newly commissioned Company-owned oil pipeline (the “San Martin oil pipeline”) connecting the San Martin field to the Cruz del Sur facility for storage and subsequent sale, negating the need for certain trucking and lowering transportation costs;Repaid $0.6 million (ARS 42.7 million) and obtained $1.2 million (ARS 85.2 million) of short-term working capital loans.OPERATIONAL UPDATETierra del Fuego Concession (“TDF”)La Angostura ConcessionRepair work at the YPF operated Cruz del Sur oil storage and offshore tanker loading facility was completed and the facility was reopened in August 2020. On August 31, 2020, the Company sold 27,173 bbls of oil, held in stock at Cruz del Sur since September 2019.On September 4, 2020, oil production from the San Martin oil pool, previously shut in on March 24, 2020 due to low pricing and no export access, was restarted at an initial restricted average rate of 1,475 (net 512) bbls of oil per day. During October 2020 oil production was increased to an average of 2,328 (net 809) bbls of oil per day. Oil is now transported through the San Martin oil pipeline.Las Violetas ConcessionNatural gas production from the Las Violetas concession remained uninterrupted during the September 2020 period. Oil produced in association with natural gas production was being trucked to and stored at Total’s Rio Cullen offshore loading facility and subsequently sold in conjunction with Total oil sales in July and September 2020 for an average price of $31.11 per bbl. With the reopening of the Cruz del Sur facility in late August 2020, associated oil production is now trucked to the San Martin field, blended with San Martin oil and transported via the San Martin oil pipeline to Cruz del Sur for storage and sale.Cerro de Los Leones (“CLL”) Exploration PermitAs at September 30, 2020, the Company is committed to drilling one exploration well on the CLL exploration permit before February 23, 2021 under the Period 3 one-year term of the permit.OUTLOOKThe Company’s capital spending for the last quarter of 2020 is budgeted at $0.5 million for improvements to facilities in TDF and one well workover on the La Angostura concession.The Company’s capital spending for fiscal 2021 is budgeted at $1.5 million in TDF based on expenditures for ongoing improvements to facilities in TDF.Investment in TDF has been significantly reduced and investment in CLL has been postponed due to a sharp decline in capital investment in Argentina as a consequence of the impact of the COVID-19 virus on both Argentina and the global economy.ARGENTINA – COVID-19 AND ECONOMIC SUMMARY

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