Crown Point Ventures expects to commence an oil targeted development drilling program during the week of June 21, 2010. Crown Point plans to drill three wells at its El Valle oilfield in the Golfo San Jorge Basin, Argentina. Funding for this program derives from the recently completed non-brokered private placement, which raised gross proceeds of approximately $4.4 million, and closed in May 2010.
El Valle has three distinct productive sedimentary formations, which, in order of surface to deepest, are the Canadon Seco, Caleta Olivia and Mina el Carmen. Each of these formations may contain multiple discrete hydrocarbon bearing zones. Typically, the Canadon Seco oil produces medium grade oil (API that ranges from 16-22 degrees), while the Caleta Olivia and Mina el Carmen produce light oil (API of approximately 30 degrees).
The objectives of the three wells are as follows:
Management estimates that it will take between 35 and 50 days to drill, complete, test and equip the three wells depending on the complexity of the completion program for each well.
Crown Point continues to evaluate other growth opportunities in Argentina. The successful conclusion of these would add a new dimension to Crown Point in Argentina and expand the depth, breadth and size of our operations and asset base.
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