Crown Point Announces Expiration of Concessions in Tierra Del Fuego
CALGARY, Alberta, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Crown Point Energy Inc. (TSX-V:CWV) ("Crown Point" or the "Company") announces that the hydrocarbon exploitation concessions in the Río Cullen, Las Violetas and La Angostura areas of the Province of Tierra del Fuego, Argentina (the "TDF Concessions") in which the Company's wholly-owned Argentine subsidiary, Crown Point Energia S.A. ("CPESA"), held a 48.3275% non-operating participating interest, expired on August 18, 2026.
CPESA, together with the other members of the joint venture formed to operate the TDF Concessions, has entered into an agreement with the Province of Tierra del Fuego that provides for the final settlement, closure and reversion of the TDF Concessions to the Province. CPESA will be responsible for its share of the trailing liabilities associated with the TDF Concessions (including severance costs and abandonment liabilities), which will be offset by the remaining assets associated with the TDF Concessions (including accounts receivable, materials and crude oil inventories). CPESA's trailing net liabilities associated with the TDF Concessions are not expected to be material to Crown Point.
Due to Crown Point's acquisition of operated oil and gas assets in the Golfo San Jorge basin in the Provinces of Santa Cruz and Chubut during the last several years, the TDF Concessions were not material to Crown Point. The TDF Concessions had high fixed operating costs, declining production volumes, no identified low risk economic drilling opportunities and much lower operating netbacks than the Company's corporate average. During the six-month period ended June 30, 2026, revenue from the TDF Concessions represented less than 5% of the Company's total revenue for the period.
Sproule International Limited, the Company's independent qualified reserves evaluator, evaluated the oil and natural gas reserves attributable to all of the Company's properties as at December 31, 2025 (the "Sproule ERCE Report"). The gross proved plus probable oil and gas reserves ("2P Reserves") assigned to the TDF Concessions in the Sproule ERCE Report represented less than 4% of the total 2P Reserves assigned to all of Crown Point's properties in the Sproule ERCE Report. The net present value (before tax, discounted at 10%) of the 2P Reserves ("2P NPV") assigned to the TDF Concessions in the Sproule ERCE Report represented less than 3% of the total 2P NPV assigned to all of Crown Point's properties in the Sproule ERCE Report.
| For inquiries please contact: | ||
| Brian J. Moss | Marcos Esteves | |
| Interim President & CEO | Vice-President, Finance & CFO | |
| Ph: (403) 232-1150 | Ph: +54 11 4776 0622 | |
| Crown Point Energy Inc. | Crown Point Energy Inc. | |
| bmoss@crownpointenergy.com | mesteves@crownpointenergy.com | |
| Website: www.crownpointenergy.com | ||
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 three producing basins in Argentina, the Golfo San Jorge basin in the Provinces of Santa Cruz and Chubut and the Neuquén and Cuyo (or Cuyana) basins in the Province of Mendoza.
Forward-looking information
Certain information set forth in this news release, including Crown's Point's belief that its trailing net liabilities associated with the TDF Concessions are not expected to be material and Crown Point's views regarding the prospects for the TDF Concessions going forward, are considered forward-looking information, and necessarily involve risks and uncertainties, certain of which are beyond Crown Point’s control. Such risks include but are not limited to the risk that Crown Point's estimate of its share of trailing liabilities and assets associated with the TDF Concessions are incorrect or that unforeseen liabilities arise for which Crown Point is responsible. Actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Crown Point will derive therefrom. With respect to forward-looking information contained herein, the Company has made certain assumptions, including regarding the nature and quantum of the liabilities and assets associated with the TDF Concessions that the Company will be responsible for and/or have the benefit of. Additional information on these and other factors that could affect Crown Point are included in reports on file with Canadian securities regulatory authorities, including under the heading “Risk Factors” in the Company’s most recent annual information form, and may be accessed through the SEDAR+ website (www.sedarplus.ca). Furthermore, the forward-looking information contained in this news release are made as of the date of this document, and Crown Point does not undertake any obligation to update publicly or to revise any of the included forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities law.
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.
