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[oilretire] 09/5/2014 14:33

CALGARY, ALBERTA--(Marketwired - May 9, 2014) - Crown Point Energy Inc. ("Crown Point" or the "Company") (TSX VENTURE:CWV) is pleased to announce that it and its partners have commenced the drilling of the first well of the planned ten well drilling program on the 25.78% interest Las Violetas Concession in Tierra del Fuego, Argentina. The well is targeting natural gas in the Springhill Formation and has a planned total depth of 2,200 metres. The balance of the planned ten well program will be drilled sequentially.

Crown Point advises that it has secured the services of a completion rig for the 100% interest La Hoyada x-1 exploration well located on its Cerro de Los Leones concession in the Province of Mendoza. Completions operations are expected to commence in the latter part of May. The completion program is targeting heavily fractured igneous intrusives in the Vaca Muerta oil shale formation.

[pumph] 01/4/2014 18:13

On the move again...

[josephrobert] 08/3/2014 10:16

March presentation


Bit more info. relating to La Hoyada X-1 drill.

Keep thinking this share has the wrong price - La Hoya results indicate unlocking further drilling, (with less emphasis on La Mocha).

In particular the relationship with it's licence to nearby Llancanelo (p22) has greater emphasis in this presentation - previously I understood the company was drilling for conventional - with a 'free look' at the unconventional - now it seems the reverse is true, and understandably so. Comparison on p33 on Los Cavoas...

[oilretire] 18/2/2014 23:21

Another big name enters the Neuquen basin.......




Malaysian oil giant Petronas today signed a preliminary agreement with Argentinian firm YPF to invest in the giant gas and shale oil field at Vaca Muerta, a statement said.

Petronas has expressed interest in a shale oil field in Neuquen province at the foot of the Andes in western Argentina, said a statement from YPF, which was nationalized in 2012 at the expense of Repsol (IW 1000/49).

Argentina has launched a global drive for foreign investment in Vaca Muerta, seen as one of the most potentially lucrative fields in the world.

German firm Wintershall, U.S. giant Chevron (IW 500/2) and Chinese-Argentinian company Bridas have already announced more than $5 billion worth of investment seeking to exploit unconventional hydrocarbons at Vaca Muerta.

French company Total (IW 1000/9) is conducting exploration at the site, while Russia's Gazprom (IW 1000/16) and Mexico's Pemex have also been approached.

[oilretire] 18/2/2014 21:20

Nice to see some life and decent thoughts/discussions, thanks.

Still holding my AEY inheritance in CWV and will continue to do so......

[edgein] 18/2/2014 09:45

Joseph,

Well its hard to predict which reservoirs would contain oil pre-drill. There were many prospective reservoirs pre-drill and it seems that the Chachao and the Agrio have turned up something as well as the conventional reservoir element in the VM (intrusives). The point I was making was that the reserve estimates were for a much smaller closure and hc column than what they actually encountered in the multiple possible reservoirs in this well.

Well the similarity with the Vega del sol well suggests that the well would have natually flowed 300-400bopd if there had not been cementation problems encountered by YPF. Its analagous to the results of the La Hoyada in that its the closest well result to the current well. The reference to the VM downdip in that well is also important as it also comfirms VM 4km to the northwest of Hoyada. Not that the VM has been anyway isolated in the many wells drilled in the Neuquen Basin to date. So its definitely more relevant imo than the YPF wells to the south, although they do prove just how extensive the VM is, as does the results of MVN and AEN too.

Regards,
Ed.

[josephrobert] 17/2/2014 20:33

Correct me if I'm wrong Ed - in the latest presentation the closure is just for Cuyo but the latest news release did not mention, let alone quantify the Cuyo formation, which considering it was a primary target is a significant omission. Nor the Lotena Group.

Another thought was the reference to the Vega de Sol well which found the Vaca Muerta 150m structually lower than La Hoyada - I'm not sure what to make of that reference - I thought they would again compare to the reserves in the blocks to the immeadiate south.

[edgein] 15/2/2014 11:30

Joseph,

Very true, also worth noting that MVN $216m approx has 107,000 net acres of potential VM, £300m AEN has 170,000 net acres of potential VM, CWV $70m cap has the same net acres as those two companies combined at 314,000 net acres of potential VM!

Also on those estimates of conventional field size from the presentations look a little more closely at the current presentation. La Hoyada stats: P10 3.6km square 70m closure, P90 6.2km square 100m closure. If I'm not mistaken we have been told about:

"The La Hoyada x-1 well was drilled to a total depth of 1,953 meters and encountered persistent oil shows and gas while drilling through the Vaca Muerta formation which consisted of 125 meters of shale and 84 meters of imbedded fractured igneous intrusives."

I make that 210m

"Additional secondary targets in the well include a 5 meter thick fractured limestone layer at the bottom of the Chachao Formation and several fractured igneous intrusives in the Agrio Formation all with oil and gas shows and full gas chromatography."

A further 5m and an unquantified amount in the Agrio formations.

Not just shows but live oil shows:

"Crown Point believes that the presence of the oil shows and background gas demonstrates that the Vaca Muerta formation at Cerro de los Leones is mature and generating oil. Analogous wells in the area indicate that the fractured intrusive igneous rocks in the Vaca Muerta could function as a conventional fractured reservoir sourcing oil from the surrounding Vaca Muerta shale. Interpretation of samples and logs indicate that 36 meters of the total 84 meters of intrusives were highly fractured and had the best live oil shows during drilling.

Similar igneous intrusives in the Mendoza portion of the Northern Neuquén basin are recognized as significant hydrocarbon reservoirs having produced over 26 million barrels of oil to date from areas surrounding Cerro de los Leones."

These way exceed the closure estimates given in the presenation.

Regards,
Ed.

[josephrobert] 15/2/2014 10:34

One more thing, CWV's licence in Cerro de Los Leones measures 314,000 acres is 491 square miles - so about 22 miles by 22 miles in plain english.

[josephrobert] 14/2/2014 17:59

Well the positive result de risks La Mocha and adds potential for oil, which is needed to balance the TdF gas cashflow.

Earlier presentations stated between 3-30mmboe and 400-1000boepd in the Cerro de Los Leones area.

Specifically in the April 2013 version, page 24, they stated that 'multiple areas for exploration and exploitation - variety of conventional plays

Expected pool sizes:3-30 mmbbls per pool
IP rates: 400-1000 boe/d per well
Recoverable reserves per well - 750,000'

Then it states:

' "Free look" at unconventional shale in the Vaca Muerta while drilling unconventional targets '

On page 28 it states the payouts for a single well with 1,000 bopd, a 2.207 mmbl reserve, payout 0.41 years.

It appears clear then the upside is considerable - very profitable conventional play plus impressive upside on the unconventional play - which looking at the height of the column is again considerable.

Historically the average netbacks weren't great, but are set to change. As Ed mentions, we are still around NPV without the commerciality of this drill being known and from the last results the company now has positive cashflow. I wonder if this company could produce enough cash to be self sustaining while progressing it's development and exploration plan? That would be worth hanging around for.

What do people think the depth of the finds in La Hoyada?




Couple more links



'igneous intrusives'

[edgein] 13/2/2014 18:24

Pump,

Read the articles regarding Shell's stance to the Argentine government and their speedy U-turn to invest in Argie. Lots has changed 20% of the revenues are now tax free etc etc Large companies can now reinvest revenues outside Argie etc. Lots of articles for you to read. It says it all when you see what all these majors are committing to the VM shale. We're now talking billions for development. Argie's insisting that Repsol was a one off. Imo its only a matter of time, given the latest release, before CWV is owned by someone else.

Regards,
Ed.

[pumph] 13/2/2014 17:57

Edgein - excellent post, thanks.

Are you not even a bit concerned about the Argentinian economy and their wreckless government though ? CWV are pretty heavily committed to one country which has a rather unsteady situation and history.

[edgein] 13/2/2014 10:20

Pump,

I don't believe you have missed the boat at all. If you read the bullboards there is a post saying that CWV had $65m in assets before this potential oil discovery. that's about 60c per share, around the current share price. This is a material announcement from CWV and its full of hints. Yes its a shale well and it won't give thousands of bbls per day flow rates, but it doesn't need to. YPF have already got their VM shale play up to 16000bopd and they're only getting started. CWV have said in the past if they get production from these two wells to be drilled they'll look towards continuous drilling.

"The La Hoyada x-1 well was drilled to a total depth of 1,953 meters and encountered persistent oil shows and gas while drilling through the Vaca Muerta formation which consisted of 125 meters of shale and 84 meters of imbedded fractured igneous intrusives."

So total oil and gas shows from the VM around 210m, very impressive for a nothern well in this play, its normally the southern gas wells with the huge gas window shale thickness. The natural fractures will do wonders for the permeability and trapped volumes in contrast to the tighter shale.

"Crown Point believes that the presence of the oil shows and background gas demonstrates that the Vaca Muerta formation at Cerro de los Leones is mature and generating oil."

Very significant that they believe that the source rock is mature and generating live oil, the next line reinforces this further:

"Interpretation of samples and logs indicate that 36 meters of the total 84 meters of intrusives were highly fractured and had the best live oil shows during drilling."

So the well has been fully logged and most likely cored and the samples have been sent to lab, the best live oil shows were in the most fractured part of the interbedded fractured rock in shale. Those live oil shows (the best live oil shows, not the only live oil shows) suggests a source rock present.

A very telling line next too:

"Similar igneous intrusives in the Mendoza portion of the Northern Neuquén basin are recognized as significant hydrocarbon reservoirs having produced over 26 million barrels of oil to date from areas surrounding Cerro de los Leones."

"A potential analogy to the La Hoyada well is the Vega del Sol well x-1, located on the Cerro de los Leones Concession 4 Km. to the northwest of La Hoyada. This well was drilled in 1995 by YPF and encountered the Vaca Muerta 150 meters structurally lower than the La Hoyada well. It was completed in intrusive igneous rocks penetrating the Chachao formation and production tested at rates between 300 and 400 barrels of oil per day. Due to problems with the well cementation program it was subsequently suspended and abandoned by YPF."

More hints that they believe this is an oil discovery.

The summary is most telling of all though:

"Crown Point believes that this drilling result is confirmation of the conventional and unconventional potential of the Vaca Muerta formation on Crown Point's 100% interest 314,000 acre Cerro de Los Leones Concession. Crown Point's geological model at Cerro de Los Leones has indicated an area of 350 km2 in the oil generation window."

Now take some time to search for Exxon, Chevron, YPF and Shell in the Vaca Meurta and see what their capital expenditure is on drilling VM wells. Now you'll see that this £33m company (that has production and reserves elsewhere in Argie too) has one of the biggest licences in the oil generating window of the VM shale! These unfracced wells could add 300-400bopd of natural flow, aboviously frac will be neccessary for full potential and sustainable flow.

True the champagne day will come when one of the majors buys out CWV, MVN and AEN. but in the mean time that is some result for a £33m company. We'll see within the next 24 months whether you'll have missed the boat or not. Also I'd imagine that those 10 wells (mostly infill) on the TDF will start soon for these guys too. At 25% or so wi not as influential as the VM stuff, but all the same will add to free cash flow with the new gas pricing in argie.

Regards,
Ed.

[pumph] 12/2/2014 18:26

Ed - I am long since out of Antrim and wouldn't go near them again (or any company their directors might show up in) with the proverbial sh*tty stick.

It's been a really impressive day for Crown though - wish I had bought a few more before now. Probably missed the boat to some extent.

The RNS today is certainly encouraging but not crate of champagne stuff yet - the language tends to suggest a future producing well of any note is probably not all that likely, but the acreage is hopeful for further exploration.

Good news though !

[edgein] 12/2/2014 16:24

Pump,

Well I guess a few overseas seem to have picked up on the meaning of this RNS, yeah interest on these shores seems low even though AEN is in the same play as CWV. Until today this bb was dead. I'm quite happy to buy canadian stocks expecially backed by sound fundamentals and company making news. Good luck with AEY, they may come back at some stage when they book Fyne.

Regards,
Ed.

[pumph] 12/2/2014 16:19

Edgein - I hold a very small holding as I had shares in Antrim Energy (who should be entitled Disasters Inc for the quality of their so-called management).

However, the Argentinian assets have seemed to me for a while to be a potential hidden gem and am surprised how nobody seems to have noticed.

I am very tempted to make a tentative top up, but my experience of Canadian companies (sorry, back to Antrim) makes me reticent to pile in.

[edgein] 12/2/2014 15:15

Did you see this article on the AEN bb:

hxxp://www.proactiveinvestors.co.uk/companies/news/65691/andes-energia-boosted-by-westhouse-upgrade-65691.html

They value VM shale at $12,000 per acre. Looks impressive for AEN at just over $2bn, defo impressive numbers. Do the same for CWV and it comes to $3.77bn with CWV's acreage.

Regards,
Ed.

[edgein] 12/2/2014 15:10

Pump,

It happens to us all, I just happen to follow all these VM companies quite closely due to the potential of them all. This one I've had my eye on for a while, 1700boepd currently plus over 7mmboe reserves and now VM shale and conventional all for a £30m cap. Remarkable. Too hard to resist for me today had to pull the trigger. I take it you hold too?

Regards,
Ed.

[pumph] 12/2/2014 15:02

Edge in - you are quite right, I am thinking of the Repsol situation.

My memory is not as reliable as I thought !

[edgein] 12/2/2014 14:55

"Crown Point believes that this drilling result is confirmation of the conventional and unconventional potential of the Vaca Muerta formation on Crown Point's 100% interest 314,000 acre Cerro de Los Leones Concession. Crown Point's geological model at Cerro de Los Leones has indicated an area of 350 km2 in the oil generation window."

That's roughly the same as MVN and Andes Energia put together in terms of net acreage! MVN currently $216m and AEN currently £300m approx!

Regards,
Ed.

[edgein] 12/2/2014 14:50

I had to take some of these, that's a mix of conventional and non-conventional oil discovered here:

Crown Point Energy drills La Hoyada x-1 to 1,953 m

2014-02-12 06:52 ET - News Release


Mr. Murray McCartney reports

CROWN POINT ENERGY INC. ANNOUNCES THE CASING OF THE 100% INTEREST LA HOYADA X-1 EXPLORATION WELL AS A POTENTIAL VACA MUERTA OIL WELL AT CERRO DE LOS LEONES, MENDOZA ARGENTINA

Crown Point Energy Inc. has drilled, logged, cased and rig released the La Hoyada x-1 exploration well as a potential Vaca Muerta oil discovery on the Cerro de los Leones concession in the Neuquen basin, province of Mendoza, Argentina.

The La Hoyada x-1 well was drilled to a total depth of 1,953 meters and encountered persistent oil shows and gas while drilling through the Vaca Muerta formation which consisted of 125 meters of shale and 84 meters of imbedded fractured igneous intrusives.

Crown Point believes that the presence of the oil shows and background gas demonstrates that the Vaca Muerta formation at Cerro de los Leones is mature and generating oil. Analogous wells in the area indicate that the fractured intrusive igneous rocks in the Vaca Muerta could function as a conventional fractured reservoir sourcing oil from the surrounding Vaca Muerta shale. Interpretation of samples and logs indicate that 36 meters of the total 84 meters of intrusives were highly fractured and had the best live oil shows during drilling.

Similar igneous intrusives in the Mendoza portion of the Northern Neuquen basin are recognized as significant hydrocarbon reservoirs having produced over 26 million barrels of oil to date from areas surrounding Cerro de los Leones.

Additional secondary targets in the well include a 5 meter thick fractured limestone layer at the bottom of the Chachao Formation and several fractured igneous intrusives in the Agrio Formation all with oil and gas shows and full gas chromatography.

Crown Point has sent the Vaca Muerta drilling samples for laboratory analysis to obtain information on total organic content and thermal maturity. The Company is commencing to design a completion program for the La Hoyada well.

A potential analogy to the La Hoyada well is the Vega del Sol well x-1, located on the Cerro de los Leones Concession 4 Km. to the northwest of La Hoyada. This well was drilled in 1995 by YPF and encountered the Vaca Muerta 150 meters structurally lower than the La Hoyada well. It was completed in intrusive igneous rocks penetrating the Chachao formation and production tested at rates between 300 and 400 barrels of oil per day. Due to problems with the well cementation program it was subsequently suspended and abandoned by YPF.

Crown Point believes that this drilling result is confirmation of the conventional and unconventional potential of the Vaca Muerta formation on Crown Point's 100% interest 314,000 acre Cerro de Los Leones Concession. Crown Point's geological model at Cerro de Los Leones has indicated an area of 350 km2 in the oil generation window.

Regards,
Ed.

[edgein] 12/2/2014 13:44

YPF is the national Argentine oil company so no, you're thinking of Repsol before the Agries took back YPF. It used to be Repsol/YPF, now they are separate entities, probably where your confusion lies.

Regards,
Ed.

[pumph] 12/2/2014 13:33

Weren't YPF chucked out by the Argies?