Crown Point Announces Operating and Financial Results for the Three and Six Months Ended June 30, 2025 and Appointment of New Director
CALGARY, Alberta, Aug. 11, 2025 (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 six months ended June 30, 2025.
Selected information is outlined below and should be read in conjunction with the Company's June 30, 2025 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 June 30, 2025 may be referred to as "Q2 2025". The comparative three months ended June 30, 2024, may be referred to as "Q2 2024".
Q2 2025 SUMMARY
During Q2 2025, the Company:
Reported net cash provided by operating activities and funds flow used in operating activities of $5.6 million and $5.0 million, respectively, as compared to Q2 2024 when the Company reported net cash and funds flow used in operating activities of $1.5 million and $1.4 million, respectively;
Earned $22.2 million of oil and natural gas sales revenue on total average daily sales volumes of 4,083 BOE per day, which was higher than the $5.6 million of oil and natural gas sales revenue earned on total average daily sales volumes of 1,340 BOE per day in Q2 2024 due to the oil sales from the Santa Cruz Concessions that were acquired on October 31, 2024;
Received an average of $3.45 per mcf for natural gas and $67.26 per bbl for oil compared to $3.71 per mcf for natural gas and $65.50 per bbl for oil received in Q2 2024;
Reported an operating netback of $(7.50) per BOE¹ down from $(4.22) per BOE in Q2 2024;
Obtained $13.1 million of working capital and overdraft loans, and repaid $5.5 million of notes payable and $8.8 million of working capital and overdraft loans;
Reported loss before taxes of $9.1 million, tax recovery of $3.4 million and net loss of $5.7 million as compared to Q2 2024 when the Company reported loss before taxes of $4.3 million, tax recovery of $1.3 million and net loss of $3.1 million;
Reported a working capital deficit² of $50.7 million and current liabilities of $74.5 million.
SUBSEQUENT EVENTS
Subsequent to June 30, 2025 the Company:
Repaid $5.62 million of working capital loans and overdraft loans.
Repaid $3.4 million principal amount of Series IV Notes and $2.1 million principal amount of Series III Notes.
Issued a total of $25 million principal amount of unsecured fixed-rate Series VII Notes, denominated in USD and payable in ARS in two equal installments on January 11, 2027 and July 11, 2027. Series VII Notes accrue interest at a fixed rate of 13% per annum, payable every six months in arrears from the issue date.
UPDATE ON CHUBUT ACQUISITION
In June 2025, Crown Point entered into agreements with Tecpetrol S.A., YPF S.A. and Pampa Energía S.A. (collectively the "Sellers"), to acquire the Sellers' aggregate 95% operated interest in the El Tordillo, La Tapera and Puesto Quiroga hydrocarbons exploitation concessions (the "Chubut Concessions") and certain related infrastructure.
The aggregate base purchase price payable by the Company to the Sellers is approximately $57.9 million in cash, subject to customary closing adjustments, plus contingent consideration of up to $3.5 million in cash. During the six months ended June 30, 2025, the Company made a $643,998 acquisition deposit related to Pampa's working interest in the Chubut Concessions and the stamp tax on the transactions. In July 2025, the Company made $8.06 million and $1.3 million of acquisition deposits to Tecpetrol and YPF, respectively, related to their working interests in the Chubut Concessions.
The acquisition of each Seller's working interest is expected to close in the third quarter of 2025. Completion of the acquisitions is subject to, among other things, the receipt of all necessary regulatory and Provincial approvals, including the approval of the TSX Venture Exchange, and other customary closing conditions.
For further details on the proposed acquisition, see the Company's press release issued on June 9, 2025, a copy of which is available at www.sedarplus.ca.
APPOINTMENT OF NEW DIRECTOR
The Company is pleased to announce that, effective today, Mr. Juan Llado has been appointed as a director of the Company by Crown Point's board of directors.
Juan is an attorney and has held various positions during his career in the financial services, insurance and energy sectors, including as: CEO of Life Seguros de Personas y Patrimoniales S.A. (formerly MetLife Argentina); CEO of Life Group Seguros S.A. (formerly Prudential Argentina); Legal & Compliance Director at Grupo ST S.A.; Legal Affairs Manager and Trust Banking Manager at Banco de Servicios y Transacciones S.A.; Legal Affairs Manager at Orígenes Seguros; and Legal Affairs Manager at Credilogros Compañía Financiera S.A.
Juan is currently a member of the Executive Committee of Grupo ST S.A. and serves on the Board of Directors of the following companies: Grupo ST S.A.; Banco de Servicios y Transacciones S.A.; ST Securities S.A.; Best Leasing S.A.; Life Seguros S.A.; Liminar Energía S.A. (which is the Company's controlling shareholder); and Crown Point Energía S.A. (a wholly-owned subsidiary of the Company).
Juan has a Bachelor of Laws degree from the University of Buenos Aires and a Master's Degree in Finance from the Universidad del CEMA.
OPERATIONAL UPDATE
Santa Cruz Concessions
During Q2 2025, Piedra Clavada Concession oil production averaged 1,902 bbls of oil per day and Koluel Kaike Concession oil production averaged 1,060 bbls of oil per day. During Q2 2025, the Company performed workovers on twelve oil producing wells.
Tierra del Fuego Concession ("TDF" or "TDF Concessions")
During Q2 2025, San Martin oil production averaged 398 (net 192) bbls of oil per day; Las Violetas concession natural gas production averaged 8,028 (net 3,880) mcf per day and associated oil production averaged 198 (net 96) bbls of oil per day.
Mendoza Concessions ("Mendoza Concessions")
Oil production for Q2 2025 averaged 766 (net 383) bbls of oil per day from the Chanares Herrados Concession ("CH Concession") and 170 (net 85) bbls of oil per day from the Puesto Pozo Cercado Oriental Concession. During Q2 2025, the Company performed workovers on five oil producing wells in the CH Concession.
OUTLOOK
The Company's capital spending for fiscal 2025 is budgeted at approximately $12.3 million, of which $10.4 million is allocated to the Santa Cruz Concessions for well workovers, facilities improvements and a drilling campaign comprised of 2 wells; $1.1 million is for well workovers, facilities improvements and optimization in the Mendoza Concessions, and $0.8 million is for testing of the gas bearing sandstone layers of the Neuquen Group at Cerro de Los Leones. During the June 2025 period, the Company incurred $0.9 million of capital expenditures in the Mendoza Concessions and $3.3 million of capital expenditures in the Santa Cruz Concessions.
RESULTS OF OPERATIONS
Sales Volumes
Three months ended
Six months ended
June 30
June 30
2025
2024
2025
2024
Total sales volumes (BOE)
371,484
121,897
756,738
240,377
Oil bbls per day
3,422
727
3,511
