The Laguna de Piedra concession was originally awarded to South Korea-based Golden Oil in the first round of the Rio Negro tenders in 2006.
Golden Oil will continue to operate the block, but Crown Point will obtain the 25% working interest by agreeing to pay 40% of the costs for 3D seismic acquisition and processing costs, according to the statement.
Crown Point estimates that it will spend US$1.1mn in the process.
A work schedule for the 1,020km block is being developed and seismic data work is scheduled to begin in the first quarter of 2008, according to the statement.
NEW IN ARGENTINA
The farm-in agreement marks Crown Point's entrance into Argentina after it recently acquired a small Argentine oil firm Crown Point, CEO Gordon Kettleson told BNamericas.
"We have a nice company here in Canada, but we were looking for some blue-sky opportunities," Kettleson said. "Things are so expensive and mature in Canada that we looked to other places. Argentina was attractive because it's very underexplored."
Kettleson said his company would focus primarily on Argentina.
"We have been approached to look at Chile, but I think Argentina is the better bet," he said. "There's not the infrastructure in Chile [for exploration] there is in Argentina, although the political climate is fantastic there."
Crown Point currently is involved with over 20 wells in the Canadian province of Manitoba.
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