Crown Point Provides Operations Update

CALGARY, Alberta, March 27, 2020 (GLOBE NEWSWIRE) -- (TSX-V:CWV): Crown Point Energy Inc. (“Crown Point” or the “Company”) today provided an update regarding its operations at Tierra del Fuego ("TDF").

Tierra del Fuego – La Angostura Concession (WI 34.74%)

As previously reported, the main San Martin oil well producer, SM x-1001 began to produce some water in late January, 2020 and the water cut subsequently increased in early February to approximately 50% of the total fluid production from this well, which had averaged 1,470 (net 511) bopd from the upper Tobífera reservoir in December 2019. The well was shut in on February 18, 2020, pending a workover to evaluate the underlying middle Tobífera section (oil bearing in the SM a-1003 oil well located approximately 1 km to the NNW of SM x-1001), followed by a test and evaluation of the uppermost Tobífera section.

The production testing and evaluation of both the middle and upper Tobífera sections was completed on March 17, 2020. The production tests of the middle Tobífera section recovered formation water and the zones (1987-95 m and 2013-20 m) were abandoned. The test of the uppermost Tobífera section (1871-76 m), located 34 m above the original producing upper Tobífera zone, flowed at an average rate of 1,576 barrels of oil per day with no reported water (0.3% BS&W) over a 24 hour period through a 25 mm choke at a flowing well head pressure of 232 psi. The well was placed back on production on March 18 at an average restricted rate of 716 bopd (net 249 bopd) over the ensuing 7 days with negligible water cut at a flowing well head pressure of 582 psi through an 8 mm choke, and during which the well produced a total of 5,012 barrels of oil.

San Martin oil production is trucked and sold to the Chilean State Oil Company (Enap) terminal located at San Gregorio, Magallanes Province, Chile. On March 23, Enap announced the suspension until further notice of all deliveries, due to an outbreak of Covid-19 at the terminal.  As a consequence of limited oil storage field capacity, the San Martin field was shut in on March 24 and will remain so until the restrictions on deliveries are lifted. The alternative option to evacuate oil from TDF, the Cruz del Sur storage and offshore loading facility operated by YPF, remains closed pending completion of ongoing repairs and maintenance. The facilities are expected to be re-opened during Q3, 2020.   The Company’s local gas sales and its gas exports through the San Martin sales gas pipeline, which crosses the Straits of Magellan and connects TDF to mainland industrial and residential markets, remain uninterrupted.