Crown Point Energy, Inc. · TSXV:CWV.H
Crown Point Energy — Investor Presentation (August 2016)
25 slides from Crown Point Energy's investor presentation, August 2016
Slide 1: Argentina – Opportunity! An Undersupplied Energy Market
TSX.V : CWV Argentina – Opportunity! An Undersupplied Energy Market CORPORATE PRESENTATION AUGUST 2016
Slide 2: Advisories
Advisories ▶ Forward-Looking Statements - Certain information regarding Crown Point Energy Inc. ("Crown Point", "our" or "we") set forth in this document may constitute forward-looking statements under applicable securities laws, including, but not limited to, the following: Crown Point's assessment
Slide 3: Advisories
Advisories ▶ Barrels of Oil Equivalent - Barrels of oil equivalent ("boes") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 thousand cubic feet ("Mcf"): 1 barrel ("bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and d
Slide 4: Argentina - Recent Changes
Argentina - Recent Changes ▶ Targeting energy self sufficiency ▶ Resolved debt default and paid restructuring holdouts with proceeds of a US$16.5 billion bond sale ▶ Implementing free market reforms Neuquén Basin and lifted cross border currency (Cerro de Los Leones) controls ▶ Encouraging the devel
Slide 5: Why Argentina
Why Argentina ▶ An undersupplied domestic natural gas market ▶ Strong and persistent demand for domestic natural gas production ▶ High domestic oil and natural gas prices (compared to other global Neuquén Basin (Cerro de Los Leones) benchmarks) ▶ Underexplored and underexploited TGS San Martin pipel
Slide 6: High Potential Asset Base
High Potential Asset Base ▶ Austral Basin (Tierra del Fuego) 25.78% working interest • Core producing asset (Q2 2016) sales production of 1,439 boepd); 81% gas weighted1 • 126,000 net acres (489,000 gross) • Strong inventory of 3D seismically defined drilling Neuquén Basin locations (Cerro de Los Le
Slide 7: Our Growth Platform
Our Growth Platform ▶ Tierra del Fuego • Conventional – generate repeatable growth from our core area • Potential Springhill tight gas resource play • Consolidation opportunities Neuquén Basin (Cerro de Los Leones) ▶ Cerro de Los Leones • Proven conventional upside ▶ Consolidation/acquisition opport
Slide 8: Tierra del Fuego
Tierra del Fuego ▶ Drilling depths: 1,700 - 2,300 m Rio Cullen ▶ Drilling Costs - US $3.5–4 million (gross) per well to drill, case, complete, frac and tie-in ▶ Extensive 3-D coverage: +1100 km2 ▶ 210 km2 of new 3-D Seismic - on the Angostura Las Violetas, Rio Cullen and Angostura concessions San Se
Slide 9: Tierra del Fuego – Development Strategy
Tierra del Fuego – Development Strategy ▶ Goals • Generate higher rates of production and Rio Cullen revenues: benefit from rising natural gas prices • Prove up reserve potential with new wells at Las Violetas, Puesto Quince and on the Rio Chico South extension • Prove up potential tight Springhill
Slide 10: Tierra del Fuego – Building Reserves and Cash Flow
Tierra del Fuego – Building Reserves and Cash Flow ▶ 2016 Capital Program Rio Cullen • 2 - 3 new well drilling program • Multi well fracture stimulation program • Completed the Puesto Quince x-1001 production test in Q1 2016 – The well is now Angostura on production as an oil well • Las Violetas Con
Slide 11: Building Production – Prospective Springhill Formation Fairway
Building Production – Prospective Springhill Formation Fairway Rio Chico Los Patos Los Flamencos Rio Chico Gas Facility Los Flamencos Rio Grande Town Site Potential Springhill San Luis New San Luis Pool Discovery Sandstone tight gas resource fairway – area 75km2 San Luis Gas Plant 11
Slide 12: Las Violetas Block – Fields
Las Violetas Block – Fields ▶ Puesto Quince Discovery • PQ x-1001 producing oil well - new pool discovery • Prospective pool area is approximately 50 km2 Las Violetas Oil Pool • Analogous to Los Flamencos and Las Violetas Gas LV-112 Los Patos pools* Pool • PQ x-1001 well is located 5 km from Crown P
Slide 13: Las Violetas – San Luis
Las Violetas – San Luis ▶ San Luis • SL x-1003 drilled on a separate fault block adjacent to San Luis Springhill gas pool • Well is a new pool discovery; tied-in to San Luis Gas Plant and placed on production end-2014 • Non-productive wells in area have potential for Rio Grande Town Site El Monte x-
Slide 14: La Marina Compression Plant
La Marina Compression Plant Turbo Compressor La Marina Compression Plant Control Panel House ▶ Capable of injecting up to 105 mmcf/d into San Martin pipeline ▶ Owned by JV (CWV working interest 25.78%) 14
Slide 15: Cerro de Los Leones: Targeting Conventional Oil and Gas
Cerro de Los Leones Targeting Conventional Oil and Gas 15
Slide 16: Cerro de Los Leones (100%WI) – Neuquén Basin
Cerro de Los Leones (100%WI) –Neuquén Basin 16
Slide 17: Cerro de Los Leones (100%WI) – North Neuquén Basin
Cerro de Los Leones (100%WI) – North Neuquén Basin ▶ High impact exploration license with proven oil production ▶ Proven productive region with excellent access Cerro de Los Leones Pampa Palauco ▶ Unconventional shale resource Cajón de los Caballos potential in the Vaca Muerta while Andes drilling c
Slide 18: Cerro de Los Leones – Operation Update
Cerro de Los Leones – Operation Update ▶ Successful Q4 2015 Re-Entry Program: • Successfully re-entered and re-completed Puesto Rojas the Vega del Sol X1 well in the Chachao 23 mmbbls of oil formation. During swabbing the well had a produced to date from 6 wells* Llancanelo OOIP 2 billion stabilized
Slide 19: Vega del Sol x-1 Productive Fractured Intrusive
Vega del Sol x-1 Productive Fractured Intrusive ▶Vega del Sol x-1 productive fractured intrusive area ~1 Km2 ▶Vega del Sol e-2 untested fractured intrusive ~ 1 Km2 Vega del Sol e-2 ▶Vega del Sol x-3 Neuquén Group area of seismically defined structural closure ~ 5Km2 Vega del Sol x-3 (Shallow Neuquén
Slide 20: Capitalization
Capitalization As at August 28, 2016 Closing price $0.06 Shares outstanding 164 million Market cap Cdn $9.87 million As at March 31, 2016 Working capital(1)(2)(3) US $1.54 million Debt (Argentine Peso denominated) (1)(2)(3) US $2.6 million Average Tierra del Fuego Sales BOED – Q 2 2016(2) 1,439 boep
Slide 21: Reserves
Reserves Reserves NPV 10% BT As at December 31, 2015 (USD M$) MBOE USD $ Proved Developed Producing1 2,440 28.6 million Total Proved1 3,763 43.2 million Proved Plus Probable1 4,918 55.9 million Valuation as at December 31, 20151 $/Share Proved Plus Probable NPV10 BT per $0.34 share (USD$)1,2,4 Prove
Slide 22: Management
Management Murray D. McCartney Marisa Tormakh President & CEO, Director Vice President Finance & CFO ▶ More than 34 years petroleum industry ▶ 30 years of experience in the Argentine financial and experience in both public and private capital markets companies ▶ Previously Director of Capital Market
Slide 23: Board of Directors
Board of Directors Gordon Kettleson – Non-Executive Chairman Pablo Bernardo Peralta ▶ Founding Director and previous CEO of ▶ More than 30 years of experience in financial Crown Point services and activities ▶ CEO of Interwest Enterprises ▶ Director and Vice-President of Banco de Servicios y Transac
Slide 24: Investment Highlights – Argentina
Investment Highlights Argentina ▶ Resolved debt default and re-integrated with international capital markets ▶ Undersupplied domestic natural gas market ▶ New Argentine government targets energy self sufficiency ▶ Implementing free market reforms and has lifted cross border currency controls ▶ New G
Slide 25: Argentina – Opportunity! An Undersupplied Energy Market
TSX.V : CWV Argentina – Opportunity! An Undersupplied Energy Market CORPORATE PRESENTATION AUGUST 2016
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