Crown Point Ventures Cases Third Potential Oil Well in Argentina


San Jorge Basin
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Crown Point Ventures has completed the drilling of the third well of a three well exploration drilling program at El Valle in the San Jorge basin of Argentina and is casing it as a potential multiple zone oil well.

The EVx-20 well has been logged, evaluated, and cased as a potential oil well. Among the numerous potentially hydrocarbon bearing zones of interest are three separate zones in Canadon Seco formation with thicknesses of four, seven and 6 meters respectively. In addition, the well encountered several potential hydrocarbon bearing zones in the deeper Mina El Carmen formation.

"This is the third well that Crown Point has drilled on its El Valle block, with all three wells containing highly prospective zones of interest," said Murray McCartney, President and CEO. "We are pleased that our drilling operations have yielded three cased potential oil wells, we are looking forward to completing the wells to confirm the quantity and amount of hydrocarbons present. All three locations show potential for significant development programs."

The first well drilled in the three well program was EVx-19 this well has been logged, evaluated, and cased as a potential oil well. Among the potential hydro-carbon bearing zones of interest are two significant zones. The first zone encountered five meter thick sandstone in the Caleta Olivia formation. Analysis of the wells logs and drilling samples indicate that it is prospective of containing light oil. The second zone of interest in the Canadon Seco is four meters in thickness. Logs and drilling samples indicate that this zone is prospective of containing a medium grade of oil. In addition to these zones were several other zones in the Canadon Seco formation.

The second well was EVx-21 which has been logged, evaluated, and cased as a potential oil well. Among the numerous potential hydro-carbon bearing zones of interest are two significant zones. The first zone encountered four meter thick sandstone in the Caleta Olivia Member of the Canadon Seco Formation. Analysis of the wells logs and drilling samples indicate that it is prospective of containing light/medium oil. The second zone of interest is three meter thick sandstone in the Mina el Carmen formation. Logs and drilling samples indicate that this zone is prospective of containing a medium grade of oil.

Crown Point is in the process of completing the EVx-19 well and will provide an update in due course. The remaining two wells will be completed sequentially.

The drilling and subsequent completion of these wells will complete the earning requirements under Crown Point's farm-in agreement. These wells were drilled pursuant to a farm-in agreement on 15,814 acres on the southern flank of the San Jorge basin. Drilling in the El Valle field commenced during the early 1960s with approximately 30 producing wells being drilled in the field. During their productive life these wells they have an average cumulative production of 250,000 bbls. of crude oil from the Caleta Olivia and 125,000 bbls from Canadon Seco formations.

Pursuant to Crown Points' farm-in agreement, the Company undertook a 90 Sq. Km. 3-D seismic program and committed to the drilling of three wells. By drilling, completing and equipping or abandoning the three earning wells, Crown Point will earn a 70% interest in the production from the earning wells prior to payout and a 50% interest thereafter. The Company will also earn a 50% interest in the balance of the field (excluding the current producing wells). Crown Point will have the right under joint venture agreements (50% interest in incremental production) to re-enter, re-complete or work over any existing well on the property.
 

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