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GlobeNewswire
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Published Mar 11, 2025 • 14 minute read
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CALGARY, Alberta, March 11, 2025 (GLOBE NEWSWIRE) — TSX-V: CWV: Crown Point Energy Inc. (“Crown Point”, the “Company” or “we”) today announced its unaudited financial and operating results for the three months and year ended December 31, 2024. All dollar figures are expressed in United States dollars (“USD”) unless otherwise stated.
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In the following discussion, the three months and the year ended December 31, 2024 may be referred to as “Q4 2024” and “2024”, respectively. The comparative three months and year ended December 31, 2023 may be referred to as “Q4 2023” and “2023”, respectively.
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Q4 2024 SUMMARY
During Q4 2024, the Company:
Reported net cash used in operating activities of $1.5 million and funds flow provided by operating activities of $1.0 million;Earned $19.6 million of oil and natural gas sales revenue on total average daily sales volumes of 3,335 BOE per day. The increase in comparison to previous quarters is due to the oil sales volumes from the Santa Cruz Concessions (as defined below) since the closing date on October 31, 2024;Received an average of $2.52 per mcf for natural gas and $71.67 per bbl for oil;Reported an operating netback of $3.96 per BOE1;Obtained $13.9 million of working capital and overdraft loans, issued $22 million principal amount of unsecured fixed-rate Series VI Notes payable and repaid $5.5 million of notes payable and $1.2 million of working capital and overdraft loans;Reported loss before taxes of $3 million and a net loss of $3.1 million;Reported a working capital deficit2 of $28.8 million;Completed the acquisition of a 100% operating interest in the Piedra Clavada and Koluel Kaike hydrocarbon exploitation concessions (the “Santa Cruz Concessions”) from Pan American Energy S.L., Sucursal Argentina for $25.8 million in cash payments plus in-kind contingent consideration payable over a 14-year period; andCompleted the acquisition of a 13.5926% non-operating participating interest in the TDF Concessions (as defined below) from an arm’s length party for $0.8 million in cash payments.
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SUBSEQUENT EVENTS
Subsequent to December 31, 2024 the Company:
Obtained working capital and overdraft loans for a total amount of $6.06 million, repaid $4.14 million on working capital loans and renewed a loan for $1 million.Repaid $5.5 million of principal installments on the Series IV and Series III Notes.
OPERATIONAL UPDATE
Santa Cruz Concessions
During Q4 2024, Piedra Clavada Concession oil production averaged 2,043 bbls of oil per day and Koluel Kaike concession oil production averaged 1,187 bbls of oil per day.
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1 Non-IFRS financial ratio. See “Non-IFRS and Other Financial Measures”.
2 Capital management measure. See “Non-IFRS and Other Financial Measures”.
Tierra del Fuego Concessions (“TDF” or “TDF Concessions”)
During Q4 2024, San Martin oil production averaged 464 (net 224) bbls of oil per day; Las Violetas concession natural gas production averaged 8,290 (net 4,007) mcf per day and associated oil production averaged 218 (net 76) bbls of oil per day.
Mendoza Concessions
During Q4 2024, the UTE carried out three workovers on oil wells and one workover in an injector well in the CH Concession. Oil production for Q4 2024 averaged 884 (net 442) bbls of oil per day from the CH Concession and 125 (net 62) bbls of oil per day from the PPCO Concession.
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OUTLOOK
The Company’s capital spending for fiscal 2025 is budgeted at approximately $28.2 million, of which $25.5 million is allocated to the Santa Cruz Concessions for well workovers, facilities improvements and a drilling campaign comprised of 7 wells; $0.7 million is for improvements to facilities in the TDF Concessions, $1.2 million is for well workovers, facilities improvements and optimization in the Mendoza Concessions, and $0.8 million is for testing of the gas bearing sandstone layers of the Neuquen Group at CLL.
SUMMARY OF UNAUDITED FINANCIAL INFORMATION
2024
(unaudited)December 31
2023Current assets28,129,766 7,636,408 Current liabilities(56,945,822)(19,422,342)Working capital (1)(28,816,056)(11,785,934)Exploration and evaluation assets14,052,021 14,103,353 Property and equipment175,506,640 45,834,731 Total assets218,188,749 67,785,665 Non-current financial liabilities (1)31,945,591 18,317,856 Share capital56,456,328 56,456,328 Total common shares outstanding72,903,038 72,903,038
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(unaudited) 2023 Oil and natural gas sales revenue19,580,949 5,530,896 36,827,158 26,766,228 (Reversal) Impairment of property and equipment– (3,050,000)– (3,050,000)Loss before taxes(3,047,172)(2,379,953)(13,013,738)(10,130,991)Net loss(3,121,431)(2,096,083)(9,145,821)(8,127,632)Net loss per share (2)(0.04)(0.03)(0.13)(0.11)Net cash (used) provided by operating activities(1,529,817)1,339,967 (4,391,237)3,793,538 Net cash per share – operating activities (1)(2)(0.02)0.02 (0.06)0.05 Funds flow (used) provided by operating activities991,927 2,109,498 (1,093,965)1,608,310 Funds flow per share – operating activities (1)(2)0.01 0.03 (0.02)0.02 Weighted average number of shares – basic and diluted72,903,038 72,903,038 72,903,038 72,903,038
(1) We adhere to International Financial Reporting Standards (“IFRS”) however the Company also employs certain non-IFRS measures to analyze financial performance, financial position, and cash flow. “Working capital” is a capital management measure. “Non-current financial liabilities” is a supplemental financial measure. “Net cash per share – operating activities” is a supplemental financial measure. “Funds flow per share – operating activities” is a supplemental financial measure. See “Non-IFRS and Other Financial Measures”.
(2) All per share figures are the same for the basic and diluted weighted average number of shares outstanding in the periods. The effect of options is anti-dilutive in loss periods. Per share amounts may not add due to rounding.
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Sales Volumes
Operating Netback (1)
2023
2024
(unaudited)2023
Per BOE Per BOE Per BOE Per BOE Oil and natural gas sales revenue ($)19,580,949 63.82 5,530,896 47.17 36,827,158 54.40 26,766,228 50.97 Export tax ($)(112,047)(0.37)(125,304)(1.07)(421,356)(0.62)(503,268)(0.96)Royalties and turnover tax ($)(3,430,729)(11.18)(961,852)(8.20)(6,475,746)(9.57)(4,519,702)(8.61)Operating costs ($)(14,822,678)(48.31)(3,356,776)(28.63)(28,941,451)(42.75)(18,405,512)(35.05)Operating netback (1) ($)1,215,495 3.96 1,086,964 9.27 988,605 1.46 3,337,746 6.35
(1) “Operating netback” is a non-IFRS measure. “Operating netback per BOE” is a non-IFRS ratio. See “Non-IFRS and Other Financial Measures”.
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About Crown Point
Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in Buenos Aires, Argentina, incorporated in Canada, trading on the TSX Venture Exchange and operating in Argentina. Crown Point’s exploration and development activities are focused in four producing basins in Argentina, the Golfo San Jorge basin in the Province of Santa Cruz, the Austral basin in the province of Tierra del Fuego, and the Neuquén and Cuyo (or Cuyana) basins in the province of Mendoza. 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.
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Advisory
Preliminary Financial Information: The Company’s expectations for our financial results for the three months and year ended December 31, 2024 contained herein are based on, among other things, our anticipated financial results for the year ending December 31, 2024. The Company’s anticipated financial results are unaudited and preliminary estimates that: (i) represent the most current information available to management as of the date hereof; (ii) are subject to completion of audit and/or review procedures that could result in significant changes to the estimated amounts; and (iii) do not present all information necessary for an understanding of the Company’s financial condition as of, and the Company’s results of operations for, such periods. The anticipated financial results are subject to the same limitations and risks as discussed under “Forward-Looking Information” below. Accordingly, the Company’s anticipated financial results for such periods may change upon the completion and approval of the financial statements for such periods and the changes could be material.
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Non-IFRS and Other Financial Measures: Throughout this press release and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position, and cash flow. These non-IFRS and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-IFRS and other financial measures should not be considered to be more meaningful than financial measures which are determined in accordance with IFRS, such as net income (loss), oil and natural gas sales revenue and net cash (used) provided by operating activities as indicators of our performance.
“Funds flow per share – operating activities” is a supplemental financial measure. Funds flow per share – operating activities is comprised of funds flow provided (used) by operating activities divided by the basic and diluted weighted average number of common shares outstanding for the period. See “Summary of Financial Information”.
“Net cash per share – operating activities” is a supplemental financial measure. Net cash per share – operating activities is comprised of net cash provided (used) by operating activities divided by the basic and diluted weighted average number of common shares outstanding for the period. See “Summary of Financial Information”.
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“Non-current financial liabilities” is a supplemental financial measure. Non-current financial liabilities is comprised of the non-current portions of trade and other payables, notes payable and lease liabilities as presented in the Company’s consolidated statements of financial position. See “Summary of Financial Information”.
“Operating Netback” is a non-IFRS measure. Operating netback is comprised of oil and natural gas sales revenue less export tax, royalties and turnover tax and operating costs. Management believes this measure is a useful supplemental measure of the Company’s profitability relative to commodity prices. See “Operating Netback” for a reconciliation of operating netback to oil and natural gas sales revenue, being our nearest measure prescribed by IFRS.
“Operating netback per BOE” is a non-IFRS ratio. Operating netback per BOE is comprised of operating netback divided by total BOE sales volumes in the period. Management believes this measure is a useful supplemental measure of the Company’s profitability relative to commodity prices. In addition, management believes that operating netback per BOE is a key industry performance measure of operational efficiency and provide investors with information that is also commonly presented by other crude oil and natural gas producers. Operating netback is a non-IFRS measure. See “Operating Netback” for the calculation of operating netback per BOE.
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“Working capital” is a capital management measure. Working capital is comprised of current assets less current liabilities. Management believes that working capital is a useful measure to assess the Company’s capital position and its ability to execute its existing exploration commitments and its share of any development programs. See “Summary of Financial Information” for a reconciliation of working capital to current assets and current liabilities, being our nearest measures prescribed by IFRS.
Abbreviations and BOE Presentation: “bbl” means barrel; “bbls” means barrels; “BOE” means barrels of oil equivalent; “mcf” means thousand cubic feet; “mmcf” means million cubic feet, “NGL” means natural gas liquids; “UTE” means Union Transitoria de Empresas, which is a registered joint venture contract established under the laws of Argentina; “WI” means working interest. All BOE conversions in this press release are derived by converting natural gas to oil in the ratio of six mcf of gas to one bbl of oil. BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six mcf of gas to one bbl of oil (6 mcf: 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. Given that the value ratio based on the price of crude oil as compared to natural gas in Argentina from time to time may be different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
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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.
For inquiries please contact: Gabriel Obrador President & CEO Ph: (403) 232-1150 Crown Point Energy Inc. gobrador@crownpointenergy.com Marisa Tormakh Vice-President, Finance & CFO Ph: (403) 232-1150 Crown Point Energy Inc. mtormakh@crownpointenergy.com
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