Crown Point Announces Financial and Operating Results for

CALGARY, Alberta, Nov. 10, 2023 (GLOBE NEWSWIRE) — TSX-V: CWV: Crown Point Energy Inc. (“Crown Point”, the “Company” or “we“) today announced its financial and operating results for the three and nine months ended September 30, 2023.

Selected information is outlined below and should be read in conjunction with the Company’s September 30, 2023 unaudited condensed interim consolidated financial statements and management’s discussion and analysis (“MD&A”) that are being filed with Canadian securities regulatory authorities and will be made available under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.crownpointenergy.com. All dollar figures are expressed in United States dollars (“USD”) unless otherwise stated.

In the following discussion, the three months ended September 30, 2023 may be referred to as “Q3 2023”. The comparative three months ended September 30, 2022 may be referred to as “Q3 2022”.

Q3 2023 SUMMARY

During Q3 2023, the Company:

• Reported net cash provided by operating activities of $2.1 million and funds flow provided by operating activities of $0.6 million as compared to Q3 2022 when the Company reported $2.7 million of net cash provided by operating activities and $1.2 million of funds flow provided by operating activities;                 
• Earned $7.4 million of oil and natural gas sales revenue on total average daily sales volumes of 1,502 BOE per day, lower than $10.8 million of oil and natural gas sales revenue earned on total average daily sales volumes of 1,863 BOE per day in Q3 2022 due to lower oil sales volumes in the TDF Concessions combined with lower oil prices;
• Received an average of $6.77 per mcf for natural gas and $61.13 per bbl for oil compared to $5.97 per mcf for natural gas and $74.68 per bbl for oil received in Q3 2022;
• Reported an operating netback of $8.46 per BOE ¹, down from $19.12 per BOE in Q3 2022;
• Obtained and repaid $1 million and $5.9 million of working capital and overdraft loans, respectively, and issued a total of $7.5 million principal amount of unsecured fixed-rate Series IV Notes for cash consideration;
• Reported a loss before taxes of $2.1 million and a net loss of $2 million as compared to Q3 2022 when the Company reported a loss before taxes of $0.5 million and a net loss of $0.9 million;
• Reported a working capital deficit² of $6.9 million.

SUBSEQUENT EVENTS

Subsequent to September 30, 2023 the Company:

• Obtained $0.47 million and $1.3 million, respectively, of working capital and export financing loans.

OPERATIONAL UPDATE

Tierra del Fuego Concession (“TDF” or “TDF Concessions”)

• During Q3 2023, San Martin oil production averaged 502 (net 174) bbls of oil per day.
• The SM.a-1003 well which was converted to a disposal well in Q2 2023 to capture formation water from the San Martin field, injected at a rate of 4,403 (net 1,529) bbls of water per day, managing the disposal of water produced from the TDF Concessions and thereby reducing the associated trucking and water treatment costs.
• During Q3 2023, natural gas sales from the Las Violetas concession averaged 9,005 (net 3,128) mcf per day and oil production averaged 259 (net 90) bbls of oil per day.

Mendoza Concessions (“Mendoza Concessions”)

• During Q3 2023, the UTE carried out workovers on four oil wells in the Chañares Herrados concession (the “CH Concession”) and on two oil wells and one injector well in the Puesto Pozo Cercado Oriental concession (the “PPCO Concession“). Oil production for Q3 2023 averaged 1,066 (net 533) bbls of oil per day from the CH Concession and 230 (net 115) bbls of oil per day from the PPCO Concession.

Cerro de Los Leones Evaluation Permit (“CLL” or “CLL Permit”)

• The Company is in conversations with the Province of Mendoza for the extension of the CLL Permit or other alternatives for the CLL Permit, including the potential compensation of the Company’s only outstanding commitment, consisting of a well repair, with working units performed by the Company in excess during the exploration period of the CLL Permit.

OUTLOOK

• The Company’s capital spending on developed and producing assets for fiscal 2023 is budgeted at approximately $7.4 million, of which $4.5 million has been incurred in the Mendoza Concessions and $0.4 million has been incurred in the TDF Concessions. The Company intends to spend the remaining $2.5 million during the last quarter of 2023 on expenditures for improvements to facilities ($0.5 million) in the TDF Concessions and well workovers ($2.0 million) in the Mendoza Concessions. The Company also plans to spend $0.5 million on the testing of the gas bearing sandstone layers of the Neuquén Group at CLL.
• The Company’s capital spending on developed and producing assets for fiscal…