For the three months ended March 31, 2025 (Unaudited)
Notice of No Auditor Review of Condensed Interim Consolidated Financial StatementsIn accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed these unaudited condensed interim consolidated financial statements as at and for the three months ended March 31, 2025.
Note | March 31 2025 | December 31 2024 | |||
Assets | |||||
Current assets | |||||
Cash | $ | 274,832 | $ | 4,392,165 | |
Trade and other receivables | 3 | 9,882,169 | 10,924,709 | ||
Hydrocarbon inventories | 1,975,050 | 1,954,841 | |||
Spare parts inventory | 5,843,836 | 5,604,864 | |||
Prepaid expenses and other current assets | 4 | 6,017,663 | 5,253,187 | ||
23,993,550 | 28,129,766 | ||||
Exploration and evaluation assets | 14,052,021 | 14,052,021 | |||
Property and equipment | 5 | 174,633,292 | 175,506,640 | ||
Restricted cash | 7 | 863,458 | 500,322 | ||
$ | 213,542,321 | $ | 218,188,749 | ||
Liabilities and Shareholders' Equity | |||||
Current liabilities | |||||
Trade and other payables | 8 | $ | 24,885,980 | $ | 19,081,498 |
Bank debt | 6 | 21,962,597 | 19,699,011 | ||
Current portion of notes payable | 7 | 18,971,687 | 16,787,098 | ||
Current portion of decommissioning provision | 10 | 329,562 | 326,211 | ||
Current portion of lease liabilities | 11 | 1,072,694 | 1,052,004 | ||
67,222,520 | 56,945,822 | ||||
Non-current trade and other payables | 8 | 42,465,058 | 58,692,364 | ||
Notes payable | 7 | 21,844,212 | 29,000,428 | ||
Decommissioning provision | 10 | 34,856,811 | 34,470,723 | ||
Lease liabilities | 11 | 696,879 | 976,116 | ||
Deferred tax liability | 16 | 26,373,836 | 29,527,901 | ||
193,459,316 | 209,613,354 | ||||
Shareholders' equity | |||||
Share capital | 56,456,328 | 56,456,328 | |||
Contributed surplus | 691,343 | 691,343 | |||
Accumulated other comprehensive loss | (18,301,361) | (18,328,171) | |||
Deficit | (18,763,305) | (30,244,105) | |||
20,083,005 | 8,575,395 | ||||
$ | 213,542,321 | $ | 218,188,749 | ||
Going concern | 1 | ||||
Commitments | 21 | ||||
Subsequent events | 22 | ||||
Approved on behalf of the Board of Directors: | "Gordon Kettleson" "Pablo Peralta" Gordon Kettleson, Director Pablo Peralta, Director |
For the three months ended March 31 | Note | 2025 | 2024 | ||
Revenue | |||||
Oil and natural gas sales | 13 | $ | 23,508,494 | $ | 6,101,086 |
Processing income | 103,534 | 74,251 | |||
Export tax | (92,504) | (152,016) | |||
Royalties and turnover tax | (4,199,485) | (1,016,422) | |||
19,320,039 | 5,006,899 | ||||
Expenses | |||||
Operating | 18,252,585 | 4,252,711 | |||
General and administrative | 14 | 1,056,477 | 581,318 | ||
Depletion and depreciation | 3,852,513 | 2,264,034 | |||
Restructuring costs | 126,818 | - | |||
Fair value adjustment of contingent consideration | 9 | (14,750,630) | - | ||
Foreign exchange gains | (364,685) | (270,041) | |||
8,173,078 | 6,828,022 | ||||
Operating income (loss) | 11,146,961 | (1,821,123) | |||
Net finance expense | 15 | (2,820,226) | (306,053) | ||
Income (loss) before taxes | 8,326,735 | (2,127,176) | |||
Tax recovery | 16 | 3,154,065 | 1,225,442 | ||
Net income (loss) | 11,480,800 | (901,734) | |||
Other comprehensive income (loss) | |||||
Items that may subsequently be reclassified to profit or loss | |||||
Exchange differences on translation of Canadian | |||||
parent company | 26,810 | (23,476) | |||
Total comprehensive income (loss) | $ | 11,507,610 | $ | (925,210) | |
Net loss per share | |||||
Basic and diluted | 12 | $ | 0.16 | $ | (0.01) |
For the three months ended March 31 | Note | 2025 | 2024 | |
Share capital | ||||
72,903,038 common shares issued and outstanding | ||||
Balance, January 1 and March 31 | $ | 56,456,328 | $ | 56,456,328 |
Contributed surplus | ||||
Balance, January 1 and March 31 | 691,343 | 691,343 | ||
Accumulated other comprehensive loss | ||||
Balance, January 1 | (18,328,171) | (18,217,300) | ||
Exchange differences on translation of Canadian | ||||
parent company | 26,810 | (23,476) | ||
Balance, March 31 | (18,301,361) | (18,240,776) | ||
Deficit | ||||
Balance, January 1 | (30,244,105) | (21,098,284) | ||
Net income (loss) | 11,480,800 | (901,734) | ||
Balance, March 31 | (18,763,305) | (22,000,018) | ||
Total shareholders' equity | $ | 20,083,005 | $ | 16,906,877 |
For the three months ended March 31 | Note | 2025 | 2024 | |
Operating activities | ||||
Net income (loss) | $ | 11,480,800 | $ | (901,734) |
Items not affecting cash: | ||||
Depletion and depreciation | 3,852,513 | 2,264,034 | ||
Fair value adjustment of contingent consideration | 9 | (14,750,630) | - | |
Net finance expense | 2,699,640 | 337,718 | ||
Unrealized foreign exchange gains | (456,952) | (3,082) | ||
Tax recovery | 16 | (3,154,065) | (1,225,442) | |
Funds flow (used in) provided by operating activities | (328,694) | 471,494 | ||
Change in non-cash working capital | 17 | 3,468,251 | (8,154) | |
Net cash provided by operating activities | 3,139,557 | 463,340 | ||
Financing activities | ||||
Bank debt proceeds | 6 | 7,081,521 | 2,176,056 | |
Bank debt repayments | 6 | (4,390,455) | (282,267) | |
Notes payable repayments | 7 | (5,462,967) | (2,093,967) | |
Notes payable interest payments | 7 | (335,510) | (317,583) | |
Restricted cash | (386,200) | 17,536 | ||
Lease payments | 11 | (288,760) | (133,364) | |
Interest paid | 6 | (1,394,473) | (243,128) | |
Net cash used in financing activities | (5,176,844) | (876,717) | ||
Investing activities | ||||
Property and equipment expenditures | 5 | (3,167,556) | (280,202) | |
Proceeds from redemption of investments | - | 2,930,954 | ||
Acquisition advance payment | - | (2,400,000) | ||
Change in non-cash working capital | 17 | 1,258,439 | 296,272 | |
Net cash (used in) provided by investing activities | (1,909,117) | 547,024 | ||
Change in cash | (3,946,404) | 133,647 | ||
Foreign exchange effect on cash held in foreign currencies | (170,929) | (10,168) | ||
Cash, January 1 | 4,392,165 | 191,507 | ||
Cash, March 31 | $ | 274,832 | $ | 314,986 |
-
REPORTING ENTITY AND GOING CONCERN:
Crown Point Energy Inc. ("Crown Point" or the "Company") was incorporated under the laws of British Columbia and continued under the laws of Alberta on July 27, 2012. Crown Point is based in Calgary, Alberta and is involved in the exploration for, and development and production of, petroleum and natural gas in Argentina.
The Company's registered office is Suite 2400, 525 - 8th Avenue SW, Calgary, Alberta, T2P 1G1.
As at March 31, 2025, Liminar Energía S.A. ("Liminar"), the Company's largest shareholder owned approximately 63.9% of the Company's issued and outstanding common shares. See Note 18(a).
Going Concern
These consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and the payment of liabilities in the ordinary course of business.
For the three months ended March 31, 2025, the Company reported net income of $11.5 million (three months ended March 31, 2024 - $0.9 million net loss) and a working capital deficit of $43.2 million at that date (December 31, 2024 -
$28.8 million working capital deficit). As of March 31, 2025, the carrying amount of notes payable outstanding is $40.8 million (Note 7), of which $19 million is classified as a current liability. The maturities of the Company's financial liabilities based on contractual cash flows are disclosed in Note 19. In addition, the Company has significant future capital commitments to develop its properties (Note 21).
The ability of the Company to continue as a going concern is dependent upon the Company's ability to obtain additional financing through bank debt and/or the issuance of notes payable or equity, and the generation of funds from operating activities to meet current and future obligations. Management plans to secure the necessary financing for its debt and future capital commitments through the issuance of new notes payable or other debt or equity instruments, however, there is no assurance that these initiatives will be successful. The need to obtain additional capital to repay or refinance bank debt and notes payable and to fund the Company's existing commitments creates a material uncertainty that may cast significant doubt about the Company's ability to meet its obligations as they become due, and accordingly, the appropriateness of the use of accounting principles applicable to a going concern.
These condensed interim consolidated financial statements do not reflect adjustments in the carrying values of the assets and liabilities, expenses and the statements of financial position classifications that would be necessary if the going concern assumption were not appropriate. Such adjustments could be material.
-
BASIS OF PRESENTATION:
The unaudited condensed interim consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and adhere to the guidance of International Accounting Standard 34 -Interim Financial Reporting. Certain information and disclosures normally included in the notes to the audited consolidated financial statements and notes thereto for the year ended December 31, 2024 prepared in accordance with IFRS Accounting Standards have been condensed or omitted. The Company has consistently applied the same accounting policies throughout all periods presented. These unaudited condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2024.
The unaudited condensed interim consolidated financial statements were approved and authorized for issuance by the Board of Directors on May 12, 2025.
-
TRADE AND OTHER RECEIVABLES:
The Company's trade and other receivables are exposed to the risk of financial loss if the counterparty fails to meet its contractual obligations. The Company's trade and other receivables include amounts due from the sale of crude oil and natural gas Approximately 6% of the Company's oil production is exported by the Company and the remainder is sold to Argentine companies; the majority of the Company's natural gas production is sold by the Company to several Argentine companies
Two major purchasers that represents 94% of oil revenue reported in the three months ended March 31, 2025 comprise
$8,992,880 of accounts receivable at March 31, 2025 (December 31, 2024 - two major purchasers, 91% of oil revenue,
$ 9,207,057 of accounts receivable) and one major purchaser that represents 52% of natural gas revenue reported in the three months ended March 31, 2025 comprises $159,185 of accounts receivable at March 31, 2025 (December 31, 2024 - one major purchaser, 74% of natural gas revenue, $137,487 of accounts receivable) (Note 13).
The Company's maximum exposure to credit risk at March 31, 2025 and December 31, 2024 in respect of trade and other receivables consists of:
March 31
2025
December 31
2024
Due from Argentine companies
$
9,673,347
$
9,742,072
Due from an international company
218,081
776,844
Due from related parties (Note 18(c))
-
137,487
Other receivables
216,389
493,963
Allowance for credit losses
(225,648)
(225,657)
Total trade and other receivables
$
9,882,169
$
10,924,709
The Company's trade and other receivables are aged as follows:
March 31
2025
December 31
2024
Not past due (less than 90 days)
$
9,876,445
$
10,941,180
Past due (more than 90 days)
231,372
209,186
10,107,817
11,150,366
Allowance for credit losses
(225,648)
(225,657)
Total trade and other receivables
$
9,882,169
$
10,924,709
-
PREPAID EXPENSES AND OTHER CURRENT ASSETS:
March 31
2025
December 31
2024
Prepaid expenses
$
3,980,551
$
3,003,360
Value Added Tax
2,037,112
2,249,827
Total prepaid expenses and other current assets
$
6,017,663
$
5,253,187
Value Added Tax ("VAT") on purchases is applied against VAT on sales to reduce the amount paid to the Argentine Government. VAT is included in prepaid expenses when amounts are expected to be offset with VAT on current sales. VAT does not expire and may be carried forward indefinitely.
-
PROPERTY AND EQUIPMENT:
Change in estimate - depletion of development and production assets
Argentina
Canada
Development
and production assets
Right-of-use assets
Other assets
Other assets
Total
Cost:
$
$
$
$
$
Balance, December 31, 2024
262,366,584
2,055,243
1,168,486
271,338
265,861,651
Additions
2,975,143
-
192,413
-
3,167,556
Effect of change in exchange rates
-
(4,676)
-
234
(4,442)
Balance, March 31, 2025
265,341,727
2,050,567
1,360,899
271,572
269,024,765
Accumulated depletion and depreciation:
Balance, December 31, 2024
80,415,929
43,309
751,880
267,893
81,479,011
Depletion and depreciation
3,674,374
271,666
91,374
256
4,037,670
Effect of change in exchange rates
-
(1,440)
-
232
(1,208)
Balance, March 31, 2025
84,090,303
313,535
843,254
268,381
85,515,473
Accumulated impairment:
Balance, December 31, 2024 and
March 31, 2025
8,876,000
-
-
-
8,876,000
Net carrying amount:
At December 31, 2024
173,074,655
2,011,934
416,606
3,445
175,506,640
At March 31, 2025
172,375,424
1,737,032
517,645
3,191
174,633,292
Effective January 1, 2025, the Company revised the unit-of-production base used in the calculation of depletion of development and production assets from proved plus probable reserves, taking into account estimated future development costs necessary to bring those reserves into production, to proved developed reserves. Following the acquisition of the Santa Cruz Concessions, the Company determined that using proved developed reserves provides a more appropriate basis for reflecting the pattern in which the future economic benefits of the assets are expected to be consumed.
The revised approach provides a more appropriate representation of the underlying economics and enhances the reliability and relevance of the financial information, consistent with the requirements of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The change in estimate has been applied prospectively from the effective date and the impact on the three months ended March 31, 2025 is a decrease in depletion expense by approximately
$1,840,000. For the year ending December 31, 2025, the change is expected to result in a total decrease in depletion expense of approximately $7,360,000. Comparative figures have not been restated.
Future development costs
The depletion expense calculation for the three months ended March 31, 2025 included $nil (December 31, 2024 - $274.5 million - $593,4 million undiscounted amount) for estimated future development costs associated with petroleum and natural gas proved and probable reserves in Argentina.
-
BANK DEBT:
The Company's bank debt is not subject to covenants. The continuity of the Company's current bank debt is as follows:
Balance, December 31, 2024
$
19,699,011
Proceeds
7,081,521
Repayments
(4,390,455)
Interest accrued (Note 15)
1,449,213
Interest paid
(1,394,473)
Effect of change in exchange rates
(482,220)
Balance, March 31, 2025
$
21,962,597
As at March 31, 2025 and December 31, 2024, the total bank debt, including principal and interest amounts, was comprised of the following balances:
March 31
2025
December 31
2024
Banco Galicia S.A.U. (a)
$
427,262
$
124,392
Banco de la Nación (b)
1,553,760
2,029,232
Galicia Más S.A. (c)
-
197,498
Banco Macro S.A. (d)
2,506,274
2,501,644
Banco Hipotecario S.A. (e)
1,517,531
1,010,338
Banco Ciudad (f)
1,500,431
1,529,041
Banco de Servicios y Transacciones S.A. (g)
6,586,699
6,732,739
Banco Provincia (h)
2,996,250
-
Discounted notes (i)
3,114,500
3,114,500
Deferred-date cheques (j)
1,759,776
1,831,395
Related party (k)
-
626,384
Bank account overdraft
114
1,848
$
21,962,597
$
19,699,011
Banco Galicia S.A.U.
During the three months ended March 31, 2025, the Company had the following working capital loans drawn and/or outstanding with Banco Galicia S.A.U:
Date of loan
Loan amount (1)
(millions)
March 31, 2025 Principal amount balance
(millions)
Annual interest rate (2)
Repayment date
July 24, 2024
ARS 43 ($0.05)
-
61%
January 30, 2025
September 27, 2024
ARS 50 ($0.05)
ARS 28.2 ($0.03)
53%
September 29, 2025 (2)
October 9, 2024
ARS 50 ($0.05)
ARS 31.9 ($0.03)
46%
October 13, 2025 (3)
February 4, 2025
ARS 67 ($0.06)
ARS 56.6 ($0.05)
36%
August 3, 2025 (2)
March 26, 2025
ARS 335.7 ($0.31)
ARS 335.7 ($0.31)
38%
March, 30 2026 (2)
March 31, 2025
ARS 452.4 ($0.42)
(1) USD equivalent on the date of loan
(2) Payable monthly
(3) Repayable monthly based on the French amortization system, with the final installment due on October 13, 2025.
As at March 31, 2025, a total of ARS 452.4 million ($0.42 million) (December 31, 2024 - ARS 126.3 million ($0.12 million)) principal amount was outstanding under the Banco Galicia S.A.U. working capital loans.
During the three months ended March 31, 2025, the Company recognized $18,824 (three months ended March 31, 2024, $22,237) of interest on the Banco Galicia S.A.U. loans, of which $14,869 (three months ended March 31, 2024 - $ 17,568) was paid and $6,017 is included in the loan balance as at March 31, 2025 (December 31, 2024 -
$ 2,061).
Banco de la Nación ("BNA")
As at March 31, 2025, the Company had a credit limit of ARS 1,900 million ($1.76 million) (December 31, 2024 -ARS 1,900 million ($1.8 million)) available which can be drawn and repaid in various amounts.
During the three months ended March 31, 2025, the Company had the following working capital loans drawn and/or outstanding with BNA:
Date of loan
Loan amount (1)
(millions)
March 31, 2025 Principal amount
balance (millions)
Annual interest rate
(2)
Repayment terms
Maturity date
Working Capital Loan VIII
June 27, 2024
ARS 150 ($0.16)
ARS 37.5 ($0.03)
BADLAR (3)
Four equal installments
June 23,
2025
Working Capital Loan IX
July 24, 2024
ARS 638 ($0.69)
-
BADLAR -
1% (4)
At maturity
January 20,
2025
Working Capital Loan X
August 13, 2024
ARS 395 ($0.42)
-
BADLAR -
1% (4)
At maturity
February 9,
2025
Working Capital Loan XI
October 2, 2024
ARS 62 ($0.06)
ARS 62 ($0.06)
BADLAR +
1% (4)
At maturity
March 31,
2025
Working Capital Loan XII
October 4, 2024
ARS 600 ($0.60)
ARS 600 ($0.56)
BADLAR +
1% (4)
At maturity
April 1, 2025
Working Capital Loan XIII
November 9, 2024
ARS 95 ($0.10)
ARS 95 ($0.09)
37%
At maturity
May 5, 2025
Working Capital Loan XIV
January 9, 2025
ARS 678 ($0.65)
ARS 678 ($0.63)
TAMAR -
3%(2)
At maturity
July 8, 2025
Export Financing Loan I
December 4, 2023
ARS 187.5 ($0.50)
-
139.25% (4)
At maturity
January 23,
2024
Export Financing Loan II
February 14, 2024
ARS 127.2 ($0.15)
-
BADLAR -
1% (4)
At maturity
April 19,
2024
Export Financing Loan III
February 14, 2024
ARS 137.9 ($0.17)
-
BADLAR -1% (4)
At maturity
June 26,
2024
Export Financing Loan IV
May 8, 2024
ARS 195 ($0.22)
-
BADLAR -
7% (4)
Two equal installments
November 7,
2024
ARS 1,472.5 ($1.37)
(1) USD equivalent on the date of loan
(2) As at March 31, 2025, the BADLAR rate was 30.1875 % (December 31, 2024 - 31.93 %) and the TAMAR rate was 32,06%.
(3) Calculated and payable quarterly.
(4) Calculated monthly and payable at maturity.
During the three months ended March 31, 2025, the Company recognized $ 34,273 (three months ended March 31, 2024, $ 225,079) of interest on the BNA loans, of which $21,038 (three months ended March 31, 2024 - $131,884) of interest was paid and $182,708 is included in the loan balance as at March 31, 2025 (December 31, 2024 -
$222,062).
Galicia Más S.A. (formerly known as "HSBC")
On May 7, 2024, the Company obtained an ARS 200 million ($0.2 million) overdraft loan with Galicia Más S.A. at variable interest rate which is determined monthly. As at March 31, 2025, the amount drawn on the overdraft balance was $nil (December 31, 2024 - ARS 203.8 million ($ 0.2 million)).
During the three months ended March 31, 2025, the Company recognized $14,954 of interest on the Galicia Más
S.A. overdraft loan, all of which was paid.
Banco Macro S.A.
During the three months ended March 31, 2025, the Company had the following working capital loans drawn and/or outstanding with Banco:
Date of loan
Loan amount (millions)
March 31, 2025
Principal amount balance (millions)
Annual
interest rate (1)
Repayment date
Working capital loan
May 8, 2024
$2.5
-
8%
January 31, 2025
Working capital loan
March 6, 2025
$2.5
$2.5
7%
September 2, 2025
$2.5
(1) Payable at maturity
The loans are guaranteed by Grupo ST S.A under an agreement with Banco Macro S.A. pursuant to which the
Company is charged a loan guarantee fee of 1% of each loan (Note 18(b)).
As at March 31, 2025, a total of $2.5 million (December 31, 2024 - $2.5 million) was outstanding under the Banco Macro S.A. loans.
During the three months ended March 31, 2025, the Company recognized $29,973 of interest on the Banco Macro
S.A. loans, of which $46,027 was paid and $11,986 is included in the loan balance as at March 31, 2025 (December 31, 2024 - $29,041).
Banco Hipotecario S.A.
The Company has an overdraft loan agreement with Banco Hipotecario S.A. for up to ARS 850 million ($0.79 million) available until June 30, 2025, with a variable interest rate determined monthly. As at March 31, 2025, ARS 528.1 million ($0.5 million) (December 31, 2024 - ARS 1.5 million ($1,426)) was drawn on the overdraft loan.
On September 25, 2024, the Company obtained a working capital loan of $1 million with Banco Hipotecario S.A. bearing interest at an annual rate of 3%, payable monthly. On January 24, 2025, the Company renewed the loan with Banco Hipotecario S.A. for 90 days.
The Banco Hipotecario S.A. loans are guaranteed by Grupo ST S.A. under an agreement with Banco Hipotecario
S.A. pursuant to which the Company is charged a loan guarantee fee of 1% of the loan balance per annum (Note 18(b)).
As at March 31, 2025, a total of $1 million (December 31, 2024 - $1 million) was drawn on the Banco Hipotecario
S.A. loans.
During the three months ended March 31, 2025, the Company recognized $34,273 (three months ended March 31, 2024 - $ 225,079) of interest on the Banco Hipotecario S.A. loans, of which $21,038 (three months ended March 31, 2024 - $131,884) was paid and $19,549 is included in the loan balance as at March 31, 2025 (December 31, 2024 - $8,912).
Banco Ciudad
On December 23, 2024, the Company obtained a $1.5 million working capital loan with Banco Ciudad at an annual interest rate of 5%, repayable on June 20, 2025. The loan is guaranteed by Grupo ST S.A under an agreement with Banco Ciudad pursuant to which the Company is charged a loan guarantee fee of 1% of the loan (Note 18 (b)).
During the three months ended March 31, 2025, the Company recognized $14,137 of interest on the Banco Ciudad working capital loans, of which $14,795 was paid and $986 is included in the loan balance as at March 31, 2025 (December 31, 2024 - $1,644).
Banco de Servicios y Transacciones S.A. ("BST")
As at December 31, 2024, the Company had an overdraft loan with BST for an amount up to ARS 9,000 million ($8.7 million) available until March 21, 2025 at an annual rate of interest of 45.11%. The overdraft loan was renewed for an amount of ARS 9,000 million ($8.4 million) available until June 30, 2025 at a variable interest rate determined monthly.
As at March 31, 2025, ARS 6,999.8 million ($6.5 million) (December 31, 2024 - ARS 6,790.5 million ($6.6 million)) was drawn on the overdraft loan.
During the three months ended March 31, 2025, the Company recognized $727,234 of interest on the BST overdraft loan, of which $810,842 was paid and $69,190 is included in the loan balance as at March 31, 2025 (December 31, 2024 - $152,796).
Banco Provincia
On January 22, 2025, the Company obtained an ARS 3,000 million ($2.9 million) working capital loan with Banco Provincia at an annual interest rate of 39%, repayable on May 22, 2025.
During the three months ended March 31, 2025, the Company recognized $204,483 of interest on the Banco Provincia working capital loan, all of which is included in the loan balance as at March 31, 2025.
Discounted promissory notes
On November 13, 2024, the Company entered into a financing arrangement with several mutual funds and institutional investors, through a Mutual Guarantee Society (SGR), under which it obtained $3.11 million in discounted promissory notes, denominated in USD, bearing interest at an average rate of 9%, repayable on various dates between April 15,
2025, and December 3, 2025. The financing arrangements are guaranteed by Liminar Energia S.A. pursuant to which the Company is charged a guarantee fee of 1% of the total financing (Note 18(a)).
As at March 31, 2025, the balance outstanding is $3.1 million (December 31, 2024 - $3.1 million).
During the three months ended March 31, 2025, the Company recognized $96,186 of financing charges, all of which was paid.
Deferred-date cheques
On November 15, 2024, the Company entered into a financing arrangement with several mutual funds and institutional investors, through a Mutual Guarantee Society (SGR), under which it obtained ARS 1,890 million ($1.8 million) in discounted deferred-date cheques, denominated in ARS, bearing interest at an average rate of 41%, repayable on various dates between May 14, 2025, and November 18, 2025. The financing arrangements are guaranteed by Liminar Energía S.A. pursuant to which the Company is charged a guarantee fee of 1% (Note 18(a)).
As at March 31, 2025, the balance outstanding is ARS 1,890 million ($1.76 million) (December 31, 2024 - 1,890 million ($1.8 million)).
During the three months ended March 31, 2025, the Company recognized $161,780 of financing charges, all of which was paid.
Related party loan
On May 31, 2024, the Company obtained a loan for an amount of $600,000 from Mr. Pablo Peralta, which accrues interest at an annual rate of 7.5%, with an original repayment date of August 29, 2024. The loan was renewed, and the capital plus $29,959 interest were repaid on January 29, 2025 (Note 18(d)).
During the three months ended March 31, 2025, the Company recognized $3,575 (three months ended March 31, 2024 - $nil) of interest, all of which was paid.
-
NOTES PAYABLE:
On March 25, 2021, Crown Point Energía obtained approval from Argentina's National Security Commission to launch offerings for notes payable for up to $75 million (or its equivalent in other currencies) effective until March 18, 2026.
As at March 31, 2025 and December 31, 2024, Crown Point Energía had the following principal amounts of notes payable outstanding:
March 31
2025
December 31
2024
Series III Notes
$
4.18 million
$
6.27 million
Series IV Notes
6.74 million
10.11 million
Series V Notes
7.18 million
7.18 million
Series VI Notes
22.00 million
22.00 million
$
40.10 million
$
45.56 million
Series III Notes are secured fixed-rate notes, denominated in USD and payable in ARS. The principal amount of Series III Notes is repayable in seven equal quarterly installments, starting on February 10, 2024 and ending on August 10, 2025. Series III Notes accrue interest at a fixed rate of 4% per annum, payable every three months in arrears from the issue date. Series III Notes are secured by the restricted cash. During the three months ended March 31, 2025, the Company repaid $2.1 million of Series III Notes principal amount.
Series IV Notes are unsecured fixed-rate notes, denominated in USD and repayable in ARS in four quarterly equal installments, starting on October 20, 2024 and ending on July 20, 2025. The Series IV Notes accrue interest at a fixed rate of 5% per annum, payable every three months in arrears from the issue date. During the three months ended March 31, 2025, the Company repaid $3.4 million of Series IV Notes principal amount.
Series V Notes are unsecured fixed-rate notes, denominated in USD and payable in ARS in a single installment on February 8, 2026. Series V Notes accrue interest at a fixed rate of 8% per annum, payable every three months in arrears from the issue date.
Series VI Notes are secured fixed-rate notes, denominated and payable in USD. The principal amount of Series VI Notes is repayable in three equal installments starting on October 30, 2026 and ending on October 30, 2027. Series VI Notes accrue interest at a fixed rate of 9.5% per annum, payable every six months in arrears from the issue date. Series VI
Notes are secured by a pledge on crude oil sales collections from the Santa Cruz Concessions. A continuity of the Company's notes payable is as follows:
Balance, December 31, 2024
$
45,787,526
Principal repayment
(5,462,967)
Amortization of premium (Note 15)
(62,666)
Amortization of transaction costs (Note 15)
89,507
Interest accrued (Note 15)
800,009
Interest paid
(335,510)
Balance, March 31, 2025
$
40,815,899
The carrying amount of notes payable is reported as follows:
March 31
2025
December 31
2024
Total notes payable
$
40,815,899
$
45,787,526
Current portion of notes payable
(18,971,687)
(16,787,098)
Long-term portion of notes payable
$
21,844,212
$
29,000,428
Restricted cash
As at March 31, 2025, $863,458 (ARS 924.8 million) (December 31, 2024 - 500,322 (ARS 514.8 million)) was reported as restricted cash. The restricted cash is collateral for the Series III and Series VI Notes. The collateral for the Series III notes is held in the Company´s Guarantee Trust account at BST, whose trustee or final beneficiary is the Company. The collateral for the Series VI notes is held in a special bank account managed by the collateral agent, BST. The amount of funds held in trust and in the special bank account is based on the Company's estimate of the next upcoming interest payment and are required to be in place until the maturity date of the notes payable.
The Company's notes payable are not subject to financial covenants.
-
TRADE AND OTHER PAYABLES
March 31
2025
December 31
2024
Trade payables
$
16,124,238
$
8,467,123
Accruals
5,639,115
7,775,842
Contingent consideration liability (Note 9)
1,689,140
1,689,140
Other payables
1,433,487
1,149,393
Current trade and other payables
24,885,980
19,081,498
Accruals
367,656
367,653
Contingent consideration liability
42,097,402
58,324,711
Non-current trade and other payables
42,465,058
58,692,364
Total trade and other payables
$
67,351,038
$
77,773,862
-
CONTINGENT CONSIDERATION (LIABILITY) RECEIVABLE:
A reconciliation of the contingent consideration (liability) receivable is as follows:
Liability (a)
In-kind liability (b)
Receivable (c)
Net
Balance, December 31, 2024
$
(1,601,394)
$
(58,412,457)
$
-
$
(60,013,851)
In-kind settlement
-
1,476,679
-
1,476,679
Fair value adjustment
-
14,750,630
-
14,750,630
Balance, March 31, 2025
(1,601,394)
(42,185,148)
-
(43,786,542)
Current portion
-
1,689,140
-
1,689,140
Long-term portion
$
(1,601,394)
$
(40,496,008)
$
-
$
(42,097,402)
The carrying amount of contingent consideration liability is reported as follows:
March 31
2025
December 31
2024
Contingent consideration liability
$
(43,786,542)
$
(60,013,851)
Current portion
1,689,140
1,689,140
Long-term portion
$
(42,097,402)
$
(58,324,711)
Contingent consideration liability
Pursuant to the 2018 acquisition St. Patrick Oil & Gas S.A. ("St. Patrick"), the Company will make quarterly payments to the vendor until December 31, 2027 equal to 10% of the amount by which net revenue (oil and gas revenue less provincial royalties) received by the Company in respect of St. Patrick's Participating Interest in the TDF Concessions for the quarter exceeds certain base net revenue thresholds for such quarter. If in any quarter the net revenues received by the Company in respect of St. Patrick´s participating interest do not exceed the base net revenue threshold for that quarter, then no royalty payment will be payable.
As at March 31, 2025, the forecast net revenues are less than the base net revenue for future quarters. As a result, the estimated fair value of the contingent consideration liability is $nil (December 31, 2024 - $nil).
Pursuant to the 2022 acquisition of the 50% working interest in the PPCO Concession, the Company will pay up to $7.53 million in quarterly payments to the vendor based on a percentage of the net operating income (oil and gas revenue less royalties, turnover and other taxes and operating expenses) derived from the 50% working interest, provided that the amounts are payable to the vendor until the Company has recovered its initial $5 million investment from its share of the net operating income derived from the PPCO Concession.
As at March 31, 2025, and December 31, 2024, the fair value of the contingent consideration liability at
$1,601,394. This contingent consideration liability is included in the non-current portion of trade and other payables (Note 8).
In-kind contingent consideration liability
Pursuant to the 2024 acquisition of the 100% working interest in the Santa Cruz Concessions, the Company recognized a $59,148,895 liability representing the estimated fair value of the in-kind contingent consideration liability. The fair value of the in-kind contingent consideration liability as at October 31, 2024 was estimated based on delivery to the Seller of a monthly quantity of oil produced in the Santa Cruz Concessions, ranging from 0 to 600 barrels of oil per day, subject to the market price of oil determined for each month over 14 years at a discount rate of 9.5%.
During the three months ended March 31, 2025, the Company paid $1,476,679 (three months ended March 31, 2024 - $nil) of in-kind consideration.
During the three months ended March 31, 2025, given the drop in the reference price of hydrocarbons due to new tariff policies established by the United States, the Company re-measured the fair value of the in-kind contingent consideration liability at $43,786,542 resulting in a fair value adjustment of $14,750,630. $1,689,140 of the in-kind contingent consideration liability is included in the current portion of trade and other payables and $42,097,402 is included in the non-current portion of trade and other payables (Note 8).
Contingent consideration receivable
As part of the consideration for the disposition of a participating interest in the TDF Concessions to the Company's UTE partners pursuant to the April 26, 2019 ROFR Sale, the UTE Partners will make future payments to the Company equal to their proportionate share of contingent royalty payments that accrue following the closing of the ROFR sale and that are payable by the Company pursuant to the acquisition of St. Patrick (described above).
As at March 31, 2025, the forecast net revenues are less than the base net revenue for future quarters. As a result, the estimated fair value of the contingent consideration liability is $nil (December 31, 2024, $nil).
-
DECOMMISSIONING PROVISION:
As at March 31, 2025, the estimated total undiscounted inflation-adjusted amount of cash flows required to settle the Company's obligations were approximately $87.4 million (December 31, 2024 - $87.4 million) expected to be incurred over the next 1 to 22 years. A risk-free interest rate of 4.5% (December 31, 2024 - 4.5%) and an inflation rate of 2.1% (December 31, 2024 - 2.1%) was used to calculate the fair value of the decommissioning provision.
A reconciliation of the decommissioning provision is provided below:
Balance, December 31, 2024
$
34,796,934
Accretion (Note 15)
389,439
Balance, March 31, 2024
35,186,373
Current portion of decommissioning provision
(329,562)
Non-current portion of decommissioning provision
$
34,856,811
-
LEASE LIABILITIES:
The Company incurs lease payments related to certain office premises and equipment in Argentina. Leases are entered into and exited in coordination with specific business requirements which includes the assessment of the appropriate durations for the related leased assets.
Balance, beginning of year
$
2,028,120
Interest (Note 15)
34,138
Payments
(288,760)
Effect of change in exchange rates
(3,925)
Balance, end of year
1,769,573
Current portion of lease liability
(1,072,694)
Non-current portion of lease liability
$
696,879
Total expected payments under lease agreements for office and equipment are $96,269 per month ($1,155,228 per year) until December 31, 2026.
-
PER SHARE AMOUNTS:
For the three months ended March 31
2024
2024
Net income (loss)
$
11,146,961
$
(901,734)
Weighted average number of shares - basic and diluted
Issued common shares, beginning and end of period
72,903,038
72,903,038
Net loss per share - basic and diluted
$
0.16
$
(0.01)
As at March 31, 2025, and December 31, 2024, the Company had 1,825,000 stock options outstanding exercisable at CAD $0.20 per share with an expiry date of May 31, 2026. There were no in-the-money stock options during the three months ended March 31, 2025. Stock options were excluded from the diluted per share amounts for the three months ended March 31, 2024 as their effect is anti-dilutive in loss periods.
-
OIL AND NATURAL GAS SALES:
The following table represents the Company's oil and natural gas sales disaggregated by commodity:
For the three months ended March 31
2025
2024
Oil
$
22,596,820
$
5,105,252
Natural gas
891,268
930,626
Natural gas liquids
20,406
65,208
$
23,508,494
$
6,101,086
Of the Company's revenue from oil sales earned in the three months ended March 31, 2025, 6% was for export sales to two purchasers and 94% was for domestic sales to three purchasers (three months ended March 31, 2024 - 43% for export sales to three purchasers; 57% for domestic sales to two purchasers) and $9,233,016 was in accounts receivable
at March 31, 2025 (December 31, 2024 - $9,207,057).
All of the Company's revenue from natural gas sales earned in the three months ended March 31, 2025 was for domestic sales, of which 52% was to one major purchaser (three months ended March 31, 2024 - domestic sales; 79% to one major purchasers) and $159,185 was in accounts receivable at March 31, 2025 (December 31, 2024 - $137,887).
The following table represents the Company's oil and natural gas sales disaggregated by market:
For the three months ended March 31
2025
2024
Export
$
1,324,102
$
2,186,975
Domestic
22,184,392
3,914,111
$
23,508,494
$
6,101,086
-
GENERAL AND ADMINISTRATIVE EXPENSES:
For the three months ended March 31
2025
2024
Salaries and benefits
$
598,558
$
266,473
Professional fees
222,212
213,508
Office and general
220,666
94,196
Travel and promotion
15,041
7,141
$
1,056,477
$
581,318
-
NET FINANCE EXPENSE:
For the three months ended March 31
2025
2024
Interest income
$
117,777
$
476,617
Gain on fair value of financial instruments
44,806
79,631
Amortization of notes payable premium (Note 7)
62,666
182,062
Finance income
225,249
738,310
Financing fees and bank charges
(268,205)
(161,905)
Interest on bank debt (Note 6)
(1,449,213)
(376,016)
Interest on notes payable (Note 7)
(800,009)
(302,647)
Loss on fair value of investments
-
(23,182)
Amortization of notes payable transaction costs (Note 7)
(89,507)
(44,710)
Accretion of decommissioning provision (Note 10)
(389,439)
(109,115)
Interest on lease liabilities (Note 11)
(34,138)
(14,925)
Accretion of other liabilities
(14,964)
(11,863)
Finance expense
(3,045,475)
(1,044,363)
Net finance expense
$
(2,820,226)
$
(306,053)
-
TAXES:
As at March 31, 2025, the Company's deferred tax liability was $26,373,836 (December 31, 2024 - $29,527,901). The Company's tax provision is comprised of the following current and deferred taxes:
For the three months ended March 31
2025
2024
Current tax recovery
$
-
$
-
Deferred tax recovery
(3,154,065)
(1,225,442)
Tax recovery
$
(3,154,065)
$
(1,225,442)
Crown Point Energía S.A.'s has sufficient non-capital loss and other tax pools available to reduce taxable income in Argentina to $nil.
Crown Point Energía S.A. has sufficient non-capital loss and other tax pools available to reduce taxable income in Argentina to $nil. The deferred tax recovery reported on March 31, 2025, and on March 31, 2024, is mainly related to the increase in tax losses combined with changes in the Company's ARS denominated tax pools.
-
SUPPLEMENTAL CASH FLOW INFORMATION:
Change in non-cash working capital items
For the three months ended March 31
2025
2024
Trade and other receivables
$
1,042,540
$
(911,563)
Hydrocarbon inventories
164,948
441,503
Spare parts inventory
(238,972)
-
Prepaid expenses and other current assets
(764,476)
(594,017)
Trade and other payables
4,327,806
1,364,142
Taxes payable
-
(11,863)
Effect of change in exchange rates
194,844
(84)
$
4,726,690
$
288,118
Attributable to:
Operating activities
$
3,468,251
$
(8,154)
Investing activities
1,258,439
296,272
$
4,726,690
$
288,118
As at March 31, 2025, the Company held $274,832 (December 31, 2024 - $ 4,392,165) of cash in Canadian, United States and Argentine banks.
During the three months ended March 31, 2025, the Company paid $1,394,473 (three months ended March 31, 2024 - $243,128) of interest expense on bank debt (Note 6) and $335,510 (three months ended March 31, 2024 -
$317,583) on notes payable (Note 7).
During three months ended March 31, 2025, the Company paid $nil to Argentine tax authorities related to corporate income tax (three months ended March 31, 2024 - $nil).
-
RELATED PARTY TRANSACTIONS:
Liminar Energía S.A. ("Liminar")
Mr. Pablo Peralta is a director of the Company and is the President and a director of Liminar and controls 45% of the voting shares of Liminar. Mr. Roberto Dominguez is the President of Crown Point Energía S.A. and is a director of Liminar and controls 45% of the voting shares of Liminar. Liminar owns approximately 63.9% of the Company's outstanding common shares.
Liminar Enegía S.A. has provided a guarantee of certain financing arrangements as disclosed in Note 6 for which the Company is charged loan guarantee fee based on 1% of the financed balance per annum. During the three months ended March 31, 2025, Liminar Energía S.A. charged the Company $19,179 (three months ended March 31, 2024 - $nil) of guarantee fees. Included in trade and other payables as at March 31, 2025 is $nil (December 31, 2024 - $nil) payable to Liminar Energía S.A..
Grupo ST S.A.
Mr. Pablo Peralta and Mr. Roberto Dominguez are also the President and Vice President, respectively, of Grupo ST
S.A. and jointly control, directly and indirectly, 96.65% of the voting shares of Grupo ST S.A..
Grupo ST S.A. has provided a guarantee of certain Banco Hipotecario S.A. loans (Note 6 (e)) and Banco Ciudad (Note 6 (f)) for which the Company is charged a loan guarantee fee of 1% of the loan balance per annum. During the three months ended March 31, 2025, Grupo ST S.A. charged the Company $nil (three months ended March 31, 2024 - $1,917) of guarantee fees. Included in trade and other payables as at March 31, 2025, is $nil (December 31, 2024 - $1,917) payable to Grupo ST S.A.
Energía y Soluciones S.A.
Gabriel Obrador is the President, Chief Executive Officer, and a director of the Company. Until December 31, 2024, he also controlled Energía y Soluciones S.A..
During the three months ended March 31, 2024, the Company sold a portion of natural gas production from the TDF Concessions to Energía y Soluciones S.A. for which the Company recognized $734,027 (ARS 620.1 million) of oil and gas revenue. Included in trade and other receivables as at December 31, 2024 is $137,488 (ARS 141 million) in
respect of this revenue.
Energía y Soluciones S.A. owns a 1.46% overriding royalty on revenue earned from the CLL Permit. As of March 31, 2025, no revenue has been earned from the CLL Permit.
Mr. Pablo Peralta
In 2024, the Company obtained a $600,000 loan from Mr. Pablo Peralta (Note 6(k)). On January 29, 2025, the loan plus $29,959 of interest was repaid. During the three months ended March 31, 2025, the Company was charged
$3,573 (three months ended March 31, 2024 - $nil) of interest on this loan.
Transactions with related parties are conducted and recorded at the exchange amount.
-
LIQUIDITY RISK:
Liquidity risk is the risk that the Company will not meet its financial obligations as they fall due. The Company's approach to managing liquidity risk is to ensure, as far as reasonable, that it will have sufficient liquidity to meet its liabilities when due, without incurring unacceptable losses.
As at March 31, 2024, the Company has a working capital deficit of $43,228,970 (December 31, 2024 - $28,816,056) which includes $10,157,0001 (December 31, 2024 - $15,316,874) of financial assets comprised of cash, investments and trade and other receivables and $65,203,818 (December 31, 2024 - $56,619,611) of financial liabilities comprised of trade and other payables, bank debt, current portion of notes payable and current portion of lease liabilities with a contractual maturity of less than one year. During the three months ended March 31, 2025, the Company reported net cash provided by operating activities in the amount of $3,139,557 (three months ended March 31, 2024 - $463,340).
The Company prepares operating and capital expenditure budgets which are regularly monitored and updated as considered necessary. In addition, the Company utilizes authorizations for expenditures to manage capital expenditures. See Note 1
The following table summarizes the maturities of the Company's financial liabilities based on contractual cash flows:
Due on or before March 31
Carrying amount
$
Contractual amount
$
2026
$
2027
$
2028
$
2029-2030
$
Trade and other payables
25,165,890
25,165,890
23,196,840
367,656
-
1,601,394
Bank debt
21,962,597
21,962,597
21,962,597
-
-
-
Notes payable
40,815,899
40,104,594
18,104,594
7,332,600
14,667,400
-
Lease liabilities
1,769,573
1,878,657
1,163,174
715,483
-
-
89,713,959
89,111,738
64,427,205
8,415,739
14,667,400
1,601,394
-
FOREIGN CURRENCY EXCHANGE RATE RISK:
A substantial portion of the Company's exploration and development activities are conducted in foreign jurisdictions and a portion of the Company's cash is denominated in CAD and ARS. The Company had no foreign exchange rate contracts in place at March 31, 2025 and December 31, 2024.
Foreign currency denominated financial instruments held by the Company:
Balance denominated in
Total USD
As at March 31, 2025
CAD
$
ARS
$
equivalents
$
Cash and cash equivalents
1,338
269,030,403
252,130
Restricted cash
-
924,763,551
863,458
Trade and other receivables
2,728
356,423,923
334,692
Trade and other payables
(497,916)
(12,739,384,677)
(12,207,975)
Bank debt
-
(14,853,096,614)
(13,829,699)
Lease liabilities
-
(99,490,985)
(92,636)
Balance denominated in
Total USD
As at December 31, 2024
CAD
$
ARS
$
equivalents
$
Cash
4,289
4,485,535,751
4,362,105
Restricted cash
-
514,831,848
500,322
Trade and other receivables
4,905
586,001,753
572,896
Trade and other payables
(464,852)
(10,311,426,754)
(10,314,765)
Bank debt
-
(11,274,067,165)
(10,924,484)
Lease liabilities
-
(106,888,373)
(103,574)
Currency devaluation:
Exchange rates as at
March 31
2025
December 31
2024
CAD to USD (1)
0.6956
0.6950
ARS to USD (1)
0.0010
0.0010
USD to ARS (2)
1072.50
1,030.50
Source OFX (2) Source BNA (National Bank of Argentina)
Currency devaluation in Argentina partially impacts the cost of ARS denominated items which are translated to the USD functional currency of the Argentine subsidiaries. A portion of the operating costs and general and administrative expenses incurred in Argentina are denominated in ARS and are also subject to inflation adjustments. During the three months ended March 31, 2025, the devaluation of ARS resulted in lower operating costs and general and administrative expenses incurred in Argentina by approximately 2% (three months ended March 31, 2024 - devaluation of ARS; lower by approximately 3%), without considering cost increases related to inflation.
During the three months ended March 31, 2025, the devaluation of ARS since the previous year end date resulted in a decrease in the USD equivalent of ARS denominated foreign currency denominated financial instruments, excluding bank debt and notes payable, by approximately $0.3 million (three months ended March 31, 2024 -devaluation of ARS; reduction by approximately $0.1 million).
The effect of currency devaluation on ARS denominated bank debt during the three months ended March 31, 2025, was a $482,220 reduction (three months ended March 31, 2024 -$44,724 reduction) in the USD equivalent amounts (Note 6).
Sensitivity analysis:
The following table presents an estimate of the impact on net loss for the market risk factors discussed above and is calculated based on the noted change in exchange rates applied to balances as at March 31, 2025:
Change in exchange rates
Impact
Foreign exchange - effect of strengthening USD
CAD denominated financial assets and liabilities
5%
$
17,180
ARS denominated financial assets and liabilities
50%
$
12,187,300
-
COMMITMENTS:
TDF Concessions
As at March 31, 2025, the Company's share of expenditure commitments with respect to the Rio Cullen exploitation concession in TDF is $0.86 million which must be completed by August 2026. The UTE RCLV expects to offset the outstanding commitment in the Rio Cullen exploitation concession with infrastructure investments made in other parts of the TDF Concessions.
Mendoza Concessions
As at March 31, 2025, the Company's share of expenditure commitments with respect to the CH Concession is $29.7 million, consisting of a work program for well work-overs, infrastructure optimization and a multi-well drilling program to be fulfilled by March 2031.
As at March 31, 2025, the Company's share of expenditure commitments with respect to the PPCO Concession is
$11.6 million, consisting of a work program for well work-overs, infrastructure optimization and a multi-well drilling program to be fulfilled by August 2028.
Santa Cruz Concessions
As at March 31, 2025, the Company's expenditure commitments related to the Piedra Clavada Concession amount to $40.5 million, of which $30.2 million must be fulfilled by 2026, consisting of a work program that includes well workovers, infrastructure optimization, and a three-well drilling program. The remaining $10.3 million must be fulfilled between 2027 and 2031, consisting of an additional three-well drilling program.
As at March 31, 2025, the Company's expenditure commitments related to the Koluel Kaike Concession amount to
$21.6 million, of which $11.3 million must be fulfilled by 2026, consisting of a work program that includes well workovers, infrastructure optimization and one well to be drilled. The remaining $10.3 million must be fulfilled between 2027 and 2031, consisting of an additional three-well drilling program.
CLL Permit
As at March 31, 2025, 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 estimated at $0.5 million, consisting of a well repair, with working units performed by the Company in excess of what was otherwise required during the exploration period of the CLL Permit.
-
SUBSEQUENT EVENTS:
Bank debt
On April 1, 2025 and May 2, 2025, respectively, the Company repaid the ARS 600 million ($0.59 million) working capital loan XII and the ARS 95 million ($0.08 million) working capital loan XIII with BNA (Note 6(b)).
On April 10, 2025, the Company obtained a $0.6 million working capital loan from Pablo Peralta, which has an annual interest rate of 10%, repayable on July 10, 2025.
On April 15, 2025, the Company paid a promissory note of $54,500 (Note 6(h)).
On April 24, 2025, the Company repaid the $1 million working capital loan with Banco Hipotecario S.A. (Note 6(e)).
On May 9, 2025, the Company obtained a $2 million working capital loan from Banco Macro S.A. (Note 6(d)), which has an annual interest rate of 7%, repayable on June 10, 2025.
Notes payable
On April 21, 2025 and May 12, 2025, respectively, the Company repaid $3.4 million principal amount of Series IV Notes and $2.1 million principal amount of Series III Notes (Note 7).