Crown Point Preps for Argeninian Drilling Program

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:

  • EV-22: (TD anticipated to be 1050m subsurface) is a twin of a well drilled in the 1969 which was abandoned despite displaying excellent petro-physical properties on logs in the sandstone layers of the middle Canadon Seco and Caleta Olivia formations. Another well in close proximity (drilled in the early 1960's) produced light oil from the Caleta Olivia formation at rates up to 650 barrels of oil per day for a period of approximately 6 months, after which time the well was abandoned when the casing collapsed due to poor cementing of the production casing.
  • EV-23: (TD anticipated to be 1150m subsurface) has three primary geological objectives; the first (in order of drilling depth) is medium grade oil in the discrete sandstone layers in the upper and middle sections of the Canadon Seco formation. The second objective is light oil in sandstone layers in the middle Caleta Olivia formation and the third is targeting light oil in tuffaceous sandstones in the Mina el Carmen formation.
  • EV-24: (TD anticipated to be 1080m subsurface) Like EV-23, we are targeting the upper and middle Canadon Seco and the middle Caleta Olivia formations, with a secondary target in the tuffaceous layers of the Mina el Carmen formation. This well is located 200 meters from previously drilled well EV-20, which encountered numerous prospective zones and a natural gas cap during the 2008 drilling program.

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.