Corporate Presentation J U N E

Transcription

1 Corporate Presentation J U N E

2 Forward Looking Statements Certain information regarding Crown Point set forth in this document may constitute forward-looking statements under applicable securities laws, including the following: all details regarding the proposed acquisition of Antrim Argentina, including the attributes of the assets to be acquired (including the resource potential and recoverable resources of such assets) and the acquisition metric statistics provided; pro forma financial and operation information in respect of Crown Point on a post-closing basis; our belief that the acquisition is accretive on various metrics; our business plans and exploration and development plans in 2012 and beyond; our production targets over the next 2 to 5 years; the estimated resource potential of each of our seven concessions post-closing; the implication that production, resource and reserve statistics obtained from properties in the vicinity of our properties will be indicative of production, resource and reserve characteristics on our properties; the details of our 2012 exploration and development plans for each of our properties, including the number of wells we intend to drill, the gross estimated original oil in place, the estimated net recoverable oil, the potential net production additions from initial production rates, estimated annualized cash flow additions, and capital expenditure levels; initial production rates; anticipated netbacks, well costs, recycle ratios and payout periods on Cerro Los Leones wells; estimated future production levels for certain of our properties; and the benefits that we anticipate deriving from the acquisition. In addition, please note that all information relating to resources and reserves is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be economically produced in the future. The forward-looking information is based on certain key expectations and assumptions made by Crown Point, including expectations and assumptions concerning: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates and resource and reserve volumes; the timing of receipt of regulatory and shareholder approvals; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Although Crown Point believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Crown Point can give no assurances that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These risks include, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from labour unrest, delays resulting from our inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, Argentina, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. 2

3 Forward Looking Statements There are also risks inherent in the nature of the proposed Arrangement, including failure to realize anticipated production levels and resource and reserves estimates, anticipated cost savings and other synergies; risks regarding the integration of Antrim Argentina into Crown Point; incorrect assessment by Crown Point of the value of Antrim Argentina; and failure to obtain the required shareholder, court, regulatory and other third party approvals. Readers are cautioned that the foregoing list of factors is not exhaustive. This document also contains forward-looking information concerning the anticipated completion of the Arrangement and the anticipated timing thereof. Crown Point has provided these anticipated times in reliance on certain assumptions that it believes are reasonable, including assumptions as to the time required to prepare meeting materials for mailing, the timing of receipt of the necessary regulatory and court approvals and the satisfaction of and time necessary to satisfy the conditions to the closing of the acquisition. These dates may change for a number of reasons, including unforeseen delays in preparing meeting materials, inability to secure necessary regulatory or court approvals in the time assumed or the need for additional time to satisfy the conditions to the completion of the acquisition. In addition, there are no assurances the acquisition will be completed. Accordingly, readers should not place undue reliance on the forward-looking information contained in this document concerning these times. Crown Point's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Additional information on these and other factors that could affect Crown Point s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( or Crown Point s website ( The forward-looking statements contained in this document are made as at the date of this document and Crown Point does not undertake any obligation to update publicly or to revise any of the included forwardlooking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil in Argentina as compared to the current price of natural gas in Argentina is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. 3

4 Crown Point Take Aways Expert Argentine team Argentina possesses world class drilling opportunities with extensive proximal infrastructure Small company exposed to large game changing upside Large Vaca Muerta Shale Oil potential Built to produce cash flow without a change to Argentina s oil price cap Attractive economic framework Low royalties, low operating costs and attractive net backs 100% drilling success with numerous low risk development locations 2012 Drilling program is underway 7 concessions with total net acreage ~693,570 acres Lots of news catalysts coming in

5 Crown Point Argentina Acquisition Acquisition summary Antrim Argentina S.A. Total acquisition cost - $27.8 mm (net of $9 mm of working capital) Antrim receive $10.23 mm cash and 35.7 mm shares of CWV to be distributed to its shareholders (via distribution) Further expands Argentina exposure 1,424 boe/d (20% liquids) net production from Tierra del Fuego property Q Adds 126,322 net undeveloped acres Grows Cerro Los Leones acreage by 153,500 net acres and obtained OPERATORSHIP of its flagship property Unrisked Vaca Muerta resource potential of mmbbls Acquisition metrics Current production ($/boepd) $19,763 Proved reserves ($/boe) $7.36 P+P reserves ($/boe) $4.64 5

6 Crown Point Current Metrics Crown Point Common shares outstanding (mm) Market cap ($mm) 80.4 Working capital ($mm) 30 Enterprise value ($mm) 50.4 Q Calendar production (boe/d) 1,759 Per mm shares EV/boepd 28,652 Reserves (mboe) Proved 4,454 Per thousand shares 43.1 EV/boe proved Proved + probable 7,777 Per thousand shares 74.6 EV/boe proved + probable 6.48 NAV PV10 ($mm) 79.3 Per share 0.76 Land (net acres) 693,570 *Based on May 29, 2012 closing price of $0.78 6

7 Crown Point Why Argentina Buenos Aires Neuquén Basin San Jorge Basin Austral Basin Current net production ~1,759 boe/d Q Drilling program underway now Operatorship of Cerro Los Leones and Laguna de Piedra with 553,000 net acres (Neuquén basin) Significant Vaca Muerta upside 126,000 net acres intierra del Fuego (Austral basin) San Jorge Basin 14,248 acres Entry into a natural gas weighted basin during a period of rising Argentine natural gas prices Well developed infrastructure throughout the country ARGENTINA 7

8 Management & Board of Directors MANAGEMENT Murray D. McCartney President & CEO, Director 30 years petroleum industry experience in both private and public companies Previously CEO of Cavell Energy and Adamant Energy Mateo Turic President & CEO, Argentina Operations, Director Former Director of Exploration and Production for YPF, Argentina and Brazil Senior Exploration Adviser to Apache Arthur J.G. Madden Chief Financial Officer 34 year of petroleum industry experience in both private and public companies Previously VP, Finance and CFO of Adamant Energy and Cavell Energy Director of Painted Pony Petroleum Daniel Lanussol Executive Vice President, Argentina Operations 34 years of senior South American oil and gas experience with YPF James McMurdo Director of Operations 35 years operational petroleum industry experience in the international and domestic industries, fluent in Spanish BOARD OF DIRECTORS Gordon Kettleson - Chairman Founding Director and previous CEO of Crown Point Ventures CEO of Interwest Enterprises Carlos Olivieri CPA Former Chief Financial Officer Repsol YPF Former President of Maxus Corporation (US YPF subsidiary) Denny Deren President of Excalibur Foxx Ltd. and Foxxhole Evacuation Systems Drilling / Completions Expert and oil industry safety provider John Clark President of Investments and Technical Management Corp. Previously President & Executive Chair of Laurasia Resource Keith Turnbull CA Former member of KPMG s executive management committee and former Office Managing Partner for KPMG s Calgary office Brian J. Moss Ph.D. Former Executive Vice President - Latin America - Antrim Energy Inc. Former Vice President International - Rio Alto Exploration Ltd. 8

9 Resource Potential Across Seven Concessions Concession El Valle Cañadon Seco Fm (oil): 4.8 mmboe Cañadon Seco Fm (gas): 1.4 mmboe Caleta Olivia Mbr: 3.3 mmboe Mina El Carmen Fm: 0.8 mmboe Total > 10 mmboe Concession Cañadon Ramírez Múltiple zones in Chubut group (oil): Total > 6.0 mmboe Concession Laguna de Piedra Punta Rosada+ Precuyo Fm: 28.2 mmboe Quintuco Fm: 6.2 mmboe Total > 34 mmboe single feature Concession Cerro Los Leones Conventional Fold Belt (western area): 64.0 mmboe Shelf (eastern area): 55 mmboe Total > 120 mmboe Concession Cerro Los Leones Vaca Muerta Shale Oil Potential 180 square miles of Vaca Muerta potential 250* million barrels of gross oil recoverable resource potential *YPF recently published a Vaca Muerta recoverable estimate of 5.6 million bbls of oil per square mile CWV has used 25% of that estimate to calculate the Vaca Muerta resource potential Tierra Del Fuego 3 Concessions Las Violetas only Natural gas 200 bcf Oil and liquids 3.2 mmbbls 9

10 Ramping Up Development & Exploration Activities (Present Yr. End 2012) Focusing on Both Conventional Opportunities and Unconventional Shale * Basin & Concessions Targeting Oil or Gas Activity Level Gross Estimated OOIP # of wells (mmboe) San Jorge Basin - Low Risk Multi-zone Light Oil Development El Valle Cañadon Ramirez Light Oil Light to Medium Oil additional Estimated NET Recoverable Oil (mmbbls or mmboe) Potential NET Production Additions from Initial prod. rates Annualized CF Additions with Plus Petrol Capex (boe/d) ($mm) ($mm) 50 8 mmbbls 1,000-2,400 $13-33 $ mmbbls $6-12 $4.5-9 Neuquén Basin High Impact Conventional Exploration & Unconventional Shale Laguna de Piedra Oil w/ gas Min. 17 mmboe Cerro de los Leones* High Impact Conventional Exploration Unconventional Vaca Muerta Shale vertical tests Light oil, heavy oil, and gas Shale Oil and Shale Gas from discovery wells only $3-5 $ mmboe 1,400-2,800 $19-40 $ Potential to prove up massive OOIP Shale Oil Potential 125 mmbbls** for only the vertical discovery wells Austral Basin Tierra del Fuego Low to Medium Risk Oil and Gas Development and Exploration $ $ Tierra del Fuego Gas with oil 6 Net 15 mmboe 600 boed $12-15 $5-8 Total ,300 4, ,750-7,215 $ $37-71 *Unrisked estimates of initial production rates, resources and cash flows 10 **YPF recently published a Vaca Muerta recoverable estimate of 5.6 million bbls of oil per square mile CWV has used 25% of that estimate to calculate the Vaca Muerta resource potential at Cerro Los Leones

11 Tierra del Fuego Natural Gas Weighted Low Risk Development and Exploration Upside Rising Argentine Natural Gas Price Environment 11

12 Opportunity Overview Austral Basin - Tierra del Fuego 9 fields 5 well frac program underway Multiple undrilled PUDs on existing 3D Upside extensions on all existing fields Running room for further development and exploration Rising natural gas price environment Production primarily from the Cretaceous Springhill Formation Current production 1,429 boe/d 12

13 Tierra del Fuego Concession Map 13

14 Austral Basin Low Risk Upside Los Violetas Internal estimates indicate (gross) ~200 bcf recoverable gas and 3.2 mmbbls NGLs based on analogy to Los Flamencos (McD parameters). Extension to San Sebastian Extension to Los Patos Puesto Quince Exploration Extension to Rio Chico Gas Field REFERENCES Gas Upside 2P Gas Oil Field 3P Gas 2P Oil Oil Upside 3P Oil Bald High Bald High 3D Outline 3D Limit Extension to Los Flamencos 14

15 Cerro de Los Leones High Impact Conventional Exploration & Vaca Muerta Oil Shale Upside Combined Gross Resource Potential >370 mmstb Drilling in

16 Cerro Los Leones North Neuquén Basin Tecpetrol operated YPF operated Large 307,000 acre exploration concession 100% operated working interest $13.5 mm US (net $6.75 mm) commitment over 3 years for seismic and drilling Multiple areas for exploration and exploitation variety of conventional plays Expected pool sizes: 3-30 mmbbls per pool IP rates: boe/d per well Recoverable reserves per well ~750,000 boe Free look at unconventional shale in the Vaca Muerta while drilling high impact conventional targets Drill cores, perforation and fracture stimulation of Vaca Muerta Oil shale in 2012 Seismic completed in Q First drilling expected 2/H 2012 Year round access and existing infrastructure 16

17 Cerro Los Leones Oil Rich Neighbourhood Llancanelo Field: OOIP 2-3 billion bbls of heavy oil YPF project Vaca Muerta sourced YPF successful Vaca Muerta Shale well Valle de Rio Grande Field: produced 89 million bbls; current production ~5,000 bopd Cerro Fortunoso Field : produced 35 million bbls; current production ~4,675 bopd Cajon de los Caballos Field: current production ~600 bopd Puesto Rojas and Cerro Mollar Fields: 52 mmbbls resource; current production ~ 360 bopd 17

18 Cerro Los Leones Vaca Muerta Potential Total potential area of oil generation window including southwest area ~180 square miles Llancanelo heavy oil field is Vaca Muerta sourced oil from the west on the Cerro Los Leones Concession Vaca Muerta recoverable oil resource potential up to 250 million barrels Crown Point s Vaca Muerta potential value is not recognized in the market Evaluation of Vaca Muerta starts this year 18

19 Cerro Los Leones - Future Plans Second quarter 2012 shoot and interpret 3D seismic program Later in 2012 initiate 2-4 well drilling program targeting Neuquén group and Vaca Muerta oil on the western area of the concession Drill 2-4 wells targeting Loncoche, Neuquén group and Huitrin formations resource type plays located on the north eastern area of the concession Vaca Muerta Shale oil evaluation starts in early second half 2012 Development drilling programs and facility construction 19

20 El Valle Concession First Oil Production Repeatable Low Risk Drilling Drilling wells steadily over next 24 months 20

21 El Valle: Drill Results 2010 to Present 100% success rate; 15for 15 on oil focused multi-zone drilling IP rates ranging from 75 to 600 bopd per vertical well; program results are above expectations vs average type curve Production capability has ramped to ~1,000 bopd and growing steadily El Valle s average well produces 240,000 bbls of oil Cost per well on production ~$1.8 mm payout < twelve months Approx 30 locations in inventory 21

22 El Valle Manufacturing and Ramp of Oil Production to Continue Through % drilling success rate 15 wells drilled well drilling program underway 24 wells over the next 24 months Ramp production up to ~1,000 bbls/d by Dec 2012 Expansion of oil processing facilities from current capacity of 600 bbls/d to a capacity of 1,500 bbls/d Planned capex for calendar $17 mm 22

23 Cañadon Ramirez Concession Additional Low Risk, Repeatable Development & Exploration Upside 23

24 Cañadon Ramirez Concession Extension of An Existing Oil Field Cañadon Ramirez El Valle Located northwest side of the San Jorge Basin Lower risk development upside to ramp oil production from seismically defined pool extension Infrastructure/pipeline connected Adjacent Mata Magallanes field has produced 5,386,000 bbls of oil Plan to ramp production up to bbls/d December

25 Cañadon Ramirez Exploration Upside Surrounding An Already Existing Field Extension Western exploration area: pinchouts towards the west in Castillo Fm Eastern exploration area: 4-way closure structure continuity of Mata Magallanes Oeste Field 25

26 Laguna de Piedra Concession High Impact Conventional Exploration To be Drilled in mmstb Resource Potential 26

27 Laguna de Piedra Multi Zone High Impact Exploration Prospects Defined with 3D Seismic C H I NORTHEAST SHELF BASIN CENTER NEUQUEN Laguna de Piedra L E FOLD BELT SOUTH FLANK HUINCUL ARCH Neuquén Basin ARGENTINA 27

28 Laguna de Piedra High Impact Drillable Formations on 3D Seismic Formations Punta Rosado and Quintuco Sandstones, light oil prospect Area of main feature ~ 3,100 acres to be drilled in the third quarter of 2012 Unrisked recoverable resource potential ~ 34 mmstb Four other features identified on the 3D seismic are not included in calculation of resource potential 28

29 2012 Development and Exploration Plan Cerro Los Leones High Impact Neuquén Concession Acquire 3D seismic program Drill up to 4-6 high impact exploration targets starting in H2/12 evaluating conventional oil and gas targets to start to evaluate 120 mmbbls conventional resource potential Drill 2-3 wells to evaluate the Vaca Muerta Oil Shale across 160 gross prospective (80 net) sections; first drilling in H2/12 to evaluate Crown Point s Vaca Muerta shale oil potential of 180 square miles of prospective acreage 250 mmbbls of oil recoverable resource* El Valle Focused on Increasing Cash Flow Drill low risk oil development wells Ramp production to ~1,500 bopd within 8 to 12 months Drill several of the 3D seismic defined exploration targets at El Valle focusing on new pools in the Cañadon Seco, Caleta Olivia and Mina el Carmen * YPF recently published a Vaca Muerta recoverable estimate of 5.6 million bbls of oil per square mile CWV has used 25% of that estimate to calculate the Vaca Muerta resource potential at Cerro Los Leones 29

30 2012 Development and Exploration Plan Cañadon Ramirez Drill 3-6 wells in 2012 to prove up westward field extension of the Mata Magallanes pool and then conduct development drilling program Laguna de Piedra Drill a test well in 2012 in the Punta Rosado Sandstone resource potential of 34 mmbbls of oil Tierra del Fuego Drill 6 low risk oil and gas development wells Fracture stimulate 5 existing wells gas plus Increase percentage of produced gas obtaining higher gas plus pricing Promote the drilling of new 3D defined development areas for oil and gas plus gas Develop static and dynamic reservoir models to maximize recovery efficiencies and secondary recovery schemes * YPF recently published a Vaca Muerta recoverable estimate of 5.6 million bbls of oil per square mile CWV has used 25% of that estimate to calculate the Vaca Muerta resource potential at Cerro Los Leones 30

31 Crown Point Take Aways Expert Argentine team Argentina possesses world class drilling opportunities with extensive proximal infrastructure Small company exposed to large game changing upside Large Vaca Muerta Shale Oil potential Built to produce cash flow without a change to Argentina s oil price cap Attractive economic framework Low royalties, low operating costs and attractive net backs 100% drilling success with numerous low risk development locations 2012 Drilling program is underway 7 concessions with total net acreage ~693,570 acres Lots of news catalysts coming in

32 Corporate Presentation J U N E