TSX-V: CWV: Crown Point Energy Inc. (“Crown
Point”, the
“Company” or
"
we"
) today announced its
financial and operating results for the three and nine months ended
September 30, 2023.
Selected information is outlined below and
should be read in conjunction with the Company’s September 30, 2023
unaudited condensed interim consolidated financial statements and
management’s discussion and analysis (“MD&A”)
that are being filed with Canadian securities regulatory
authorities and will be made available under the Company’s profile
at www.sedarplus.ca and on the Company’s website at
www.crownpointenergy.com. All dollar figures are expressed
in United States dollars ("USD") unless otherwise
stated.
In the following discussion, the three months
ended September 30, 2023 may be referred to as “Q3 2023”. The
comparative three months ended September 30, 2022 may be referred
to as “Q3 2022”.
Q3 2023 SUMMARY
During Q3 2023, the Company:
- Reported net cash
provided by operating activities of $2.1 million and funds flow
provided by operating activities of $0.6 million as compared to Q3
2022 when the Company reported $2.7 million of net cash provided by
operating activities and $1.2 million of funds flow provided by
operating activities;
- Earned $7.4 million
of oil and natural gas sales revenue on total average daily sales
volumes of 1,502 BOE per day, lower than $10.8 million of oil and
natural gas sales revenue earned on total average daily sales
volumes of 1,863 BOE per day in Q3 2022 due to lower oil sales
volumes in the TDF Concessions combined with lower oil prices;
- Received an average
of $6.77 per mcf for natural gas and $61.13 per bbl for oil
compared to $5.97 per mcf for natural gas and $74.68 per bbl for
oil received in Q3 2022;
- Reported an
operating netback of $8.46 per BOE 1, down from $19.12 per BOE in
Q3 2022;
- Obtained and repaid
$1 million and $5.9 million of working capital and overdraft loans,
respectively, and issued a total of $7.5 million principal amount
of unsecured fixed-rate Series IV Notes for cash
consideration;
- Reported a loss
before taxes of $2.1 million and a net loss of $2 million as
compared to Q3 2022 when the Company reported a loss before taxes
of $0.5 million and a net loss of $0.9 million;
- Reported a working
capital deficit2 of $6.9 million.
SUBSEQUENT EVENTS
Subsequent to September 30, 2023 the Company:
- Obtained $0.47
million and $1.3 million, respectively, of working capital and
export financing loans.
OPERATIONAL UPDATE
Tierra del Fuego Concession ("TDF" or
"TDF Concessions")
- During Q3 2023, San
Martin oil production averaged 502 (net 174) bbls of oil per
day.
- The SM.a-1003 well
which was converted to a disposal well in Q2 2023 to capture
formation water from the San Martin field, injected at a rate of
4,403 (net 1,529) bbls of water per day, managing the disposal of
water produced from the TDF Concessions and thereby reducing the
associated trucking and water treatment costs.
- During Q3 2023,
natural gas sales from the Las Violetas concession averaged 9,005
(net 3,128) mcf per day and oil production averaged 259 (net 90)
bbls of oil per day.
Mendoza Concessions ("Mendoza
Concessions")
- During Q3 2023, the
UTE carried out workovers on four oil wells in the Chañares
Herrados concession (the "CH Concession") and on
two oil wells and one injector well in the Puesto Pozo Cercado
Oriental concession (the "PPCO Concession"). Oil
production for Q3 2023 averaged 1,066 (net 533) bbls of oil per day
from the CH Concession and 230 (net 115) bbls of oil per day from
the PPCO Concession.
Cerro de Los Leones Evaluation Permit
("CLL" or “CLL Permit”)
- The Company is in
conversations with the Province of Mendoza for the extension of the
CLL Permit or other alternatives for the CLL Permit, including the
potential compensation of the Company's only outstanding
commitment, consisting of a well repair, with working units
performed by the Company in excess during the exploration period of
the CLL Permit.
OUTLOOK
- The Company’s
capital spending on developed and producing assets for fiscal 2023
is budgeted at approximately $7.4 million, of which $4.5 million
has been incurred in the Mendoza Concessions and $0.4 million has
been incurred in the TDF Concessions. The Company intends to spend
the remaining $2.5 million during the last quarter of 2023 on
expenditures for improvements to facilities ($0.5 million) in the
TDF Concessions and well workovers ($2.0 million) in the Mendoza
Concessions. The Company also plans to spend $0.5 million on the
testing of the gas bearing sandstone layers of the Neuquén Group at
CLL.
- The Company’s
capital spending on developed and producing assets for fiscal 2024
is budgeted at approximately $20.0 million of which $0.2 million is
for improvements to facilities in the TDF Concessions and $19.8
million is for drilling five vertical wells, well workovers, and
facilities improvements and optimization in the Mendoza
Concessions.
SUMMARY OF FINANCIAL
INFORMATION
|
(expressed in $, except shares outstanding) |
September 302023 |
December 312022 |
|
Current assets |
7,791,757 |
|
9,852,182 |
|
|
Current liabilities |
(14,645,097 |
) |
(11,125,229 |
) |
|
Working capital(1) |
(6,853,340 |
) |
(1,273,047 |
) |
|
Exploration and evaluation assets |
14,115,371 |
|
14,115,555 |
|
|
Property and equipment |
42,360,780 |
|
43,963,610 |
|
|
Total assets |
64,426,315 |
|
68,183,547 |
|
|
Non-current financial liabilities(1) |
17,014,523 |
|
16,055,005 |
|
|
Share capital |
56,456,328 |
|
56,456,328 |
|
|
Total common shares outstanding |
72,903,038 |
|
72,903,038 |
|
|
(expressed in $, except shares outstanding) |
Three months ended |
Nine months ended |
|
|
September 30 |
September 30 |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
Oil and natural gas sales revenue |
7,400,992 |
|
10,751,784 |
|
21,235,332 |
|
24,453,878 |
|
|
Gain on acquisition of working interest |
– |
|
(1,046,626 |
) |
– |
|
(1,046,626 |
) |
|
Loss before taxes |
(2,084,976 |
) |
(469,506 |
) |
(7,751,038 |
) |
(2,604,912 |
) |
|
Net loss |
(2,027,637 |
) |
(884,657 |
) |
(6,031,549 |
) |
(3,194,246 |
) |
|
Net loss per share(2) |
(0.03 |
) |
(0.01 |
) |
(0.08 |
) |
(0.04 |
) |
|
Net cash (used) provided by operating activities |
2,144,720 |
|
2,749,800 |
|
2,453,571 |
|
1,164,437 |
|
|
Net cash per share – operating activities(1)(2) |
0.03 |
|
0.04 |
|
0.03 |
|
0.02 |
|
|
Funds flow (used) provided by operating activities |
622,333 |
|
1,182,335 |
|
(501,188 |
) |
2,875,609 |
|
|
Funds flow per share – operating activities(1)(2) |
0.01 |
|
0.02 |
|
(0.01 |
) |
0.04 |
|
|
Weighted average number of shares – basic and diluted |
72,903,038 |
|
72,903,038 |
|
72,903,038 |
|
72,903,038 |
|
|
(1) |
We adhere to International Financial Reporting Standards
(“IFRS”), however the Company also employs certain
non-IFRS measures to analyze financial performance, financial
position, and cash flow. Additionally, other financial measures are
also used to analyze performance. These non-IFRS and other
financial measures do not have any standardized meaning prescribed
by IFRS and therefore may not be comparable to similar measures
provided by other issuers. “Working capital” is a capital
management measure. “Non-current financial liabilities” is a
supplemental financial measure. "Net cash per share – operating
activities" is a supplemental financial measure. "Funds flow per
share – operating activities" is a supplemental financial measure.
See "Non-IFRS and Other Financial Measures". |
| (2) |
All per
share figures are the same for the basic and diluted weighted
average number of shares outstanding in the periods. The effect of
options is anti-dilutive in loss periods. Per share amounts may not
add due to rounding. |
Sales Volumes
|
|
Three months ended |
Nine months ended |
|
|
September 30 |
September 30 |
|
|
2023 |
2022 |
2023 |
2022 |
|
Total sales volumes (BOE) |
138,243 |
171,446 |
407,863 |
433,763 |
|
Light oil bbls per day |
962 |
1,289 |
941 |
999 |
|
NGL bbls per day |
19 |
16 |
18 |
10 |
|
Natural gas mcf per day |
3,128 |
3,349 |
3,213 |
3,479 |
|
Total BOE per day |
1,502 |
1,863 |
1,495 |
1,589 |
|
|
|
|
|
|
Operating Netback (1)
|
|
Three months ended |
Nine months ended |
|
|
September 30 |
September 30 |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
Per BOE |
|
Per BOE |
|
Per BOE |
|
Per BOE |
|
Oil and natural gas sales revenue ($) |
7,400,992 |
|
53.54 |
|
10,751,784 |
|
62.71 |
|
21,235,332 |
|
52.06 |
|
24,453,878 |
|
56.38 |
|
|
Export tax ($) |
(139,494 |
) |
(1.01 |
) |
(470,681 |
) |
(2.75 |
) |
(377,964 |
) |
(0.93 |
) |
(892,217 |
) |
(2.06 |
) |
|
Royalties and turnover tax ($) |
(1,299,685 |
) |
(9.40 |
) |
(2,053,781 |
) |
(11.98 |
) |
(3,557,850 |
) |
(8.72 |
) |
(4,207,109 |
) |
(9.70 |
) |
|
Operating costs ($) |
(4,793,415 |
) |
(34.67 |
) |
(4,948,226 |
) |
(28.86 |
) |
(15,048,736 |
) |
(36.90 |
) |
(11,473,732 |
) |
(26.45 |
) |
|
Operating netback(1)($) |
1,168,398 |
|
8.46 |
|
3,279,096 |
|
19.12 |
|
2,250,782 |
|
5.51 |
|
7,880,820 |
|
18.17 |
|
|
|
|
|
|
|
|
|
|
|
(1) "Operating netback" is a non-IFRS measure.
“Operating netback per BOE” is a non-IFRS ratio. See "Non-IFRS and
Other Financial Measures".
For inquiries please contact:
| Gabriel
Obrador |
Marisa
Tormakh |
| President & CEO |
Vice-President, Finance & CFO |
| Ph: (403) 232-1150 |
Ph: (403) 232-1150 |
| Crown Point Energy Inc. |
Crown Point Energy Inc. |
| gobrador@crownpointenergy.com |
mtormakh@crownpointenergy.com |
About Crown Point
Crown Point Energy Inc. is an international oil
and gas exploration and development company headquartered in
Calgary, Canada, incorporated in Canada, trading on the TSX Venture
Exchange and operating in Argentina. Crown Point’s exploration and
development activities are focused in three producing basins in
Argentina, the Austral basin in the province of Tierra del Fuego,
and the Neuquén and Cuyo (or Cuyana) basins in the province of
Mendoza. Crown Point has a strategy that focuses on establishing a
portfolio of producing properties, plus production enhancement and
exploration opportunities to provide a basis for future growth.
Advisory
Non-IFRS and Other Financial Measures:
Throughout this press release and in other materials disclosed by
the Company, we employ certain measures to analyze financial
performance, financial position, and cash flow. These non-IFRS and
other financial measures do not have any standardized meaning
prescribed by IFRS and therefore may not be comparable to similar
measures provided by other issuers. The non-IFRS and other
financial measures should not be considered to be more meaningful
than financial measures which are determined in accordance with
IFRS, such as net income (loss), oil and natural gas sales revenue
and net cash (used) provided by operating activities as indicators
of our performance.
"Funds flow per share – operating activities" is
a supplemental financial measure. Funds flow per share – operating
activities is comprised of funds flow provided (used) by operating
activities divided by the basic and diluted weighted average number
of common shares outstanding for the period. See “Summary of
Financial Information”.
"Net cash per share – operating activities" is a
supplemental financial measure. Net cash per share – operating
activities is comprised of net cash provided (used) by operating
activities divided by the basic and diluted weighted average number
of common shares outstanding for the period. See “Summary of
Financial Information”.
"Non-current financial liabilities" is a
supplemental financial measure. Non-current financial liabilities
is comprised of the non-current portions of trade and other
payables, notes payable and lease liabilities as presented in the
Company’s consolidated statements of financial position. See
“Summary of Financial Information”.
"Operating Netback" is a non-IFRS measure.
Operating netback is comprised of oil and natural gas sales revenue
less export tax, royalties and turnover tax and operating costs.
Management believes this measure is a useful supplemental measure
of the Company’s profitability relative to commodity prices. See
“Operating Netback” for a reconciliation of operating netback to
oil and natural gas sales revenue, being our nearest measure
prescribed by IFRS.
"Operating netback per BOE" is a non-IFRS ratio.
Operating netback per BOE is comprised of operating netback divided
by total BOE sales volumes in the period. Management believes this
measure is a useful supplemental measure of the Company’s
profitability relative to commodity prices. In addition, management
believes that operating netback per BOE is a key industry
performance measure of operational efficiency and provide investors
with information that is also commonly presented by other crude oil
and natural gas producers. Operating netback is a non-IFRS measure.
See "Operating Netback" for the calculation of operating netback
per BOE.
"Working capital" is a capital management
measure. Working capital is comprised of current assets less
current liabilities. Management believes that working capital is a
useful measure to assess the Company's capital position and its
ability to execute its existing exploration commitments and its
share of any development programs. See “Summary of Financial
Information” for a reconciliation of working capital to current
assets and current liabilities, being our nearest measures
prescribed by IFRS.
Abbreviations and BOE Presentation: "bbl" means
barrel; "bbls" means barrels; "BOE" means barrels of oil
equivalent; "km" means kilometers; "km2" means square kilometers;
"m" means meters; “"mm" means millimeters; "mcf” means thousand
cubic feet, "mmcf" means million cubic feet, "NGL" means natural
gas liquids; "UTE" means Union Transitoria de Empresas, which is a
registered joint venture contract established under the laws of
Argentina; "WI" means working interest; and "YPF" means Yacimientos
Petrolíferos Fiscales S.A. All BOE conversions in this press
release are derived by converting natural gas to oil in the ratio
of six mcf of gas to one bbl of oil. BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of six
mcf of gas to one bbl of oil (6 mcf: 1 bbl) is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
Given that the value ratio based on the price of crude oil as
compared to natural gas in Argentina from time to time may be
different from the energy equivalency conversion ratio of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
Forward-looking Information: This document
contains forward-looking information. This information relates to
future events and the Company’s future performance. All information
and statements contained herein that are not clearly historical in
nature constitute forward-looking information. Such information
represents the Company’s internal projections, estimates,
expectations, beliefs, plans, objectives, assumptions, intentions
or statements about future events or performance. This information
involves known or unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information.
In addition, this document may contain forward-looking
information attributed to third party industry sources. Crown Point
believes that the expectations reflected in this forward-looking
information are reasonable; however, undue reliance should not be
placed on this forward-looking information, as there can be no
assurance that the plans, intentions or expectations upon which
they are based will occur. This press release contains
forward-looking information concerning, among other things, the
following: under "Operational Update", the Company's plans for
future operations on its TDF Concessions, Mendoza Concessions and
CLL Permit and the anticipated benefits to be derived therefrom and
timing thereof, including the Company's expectations for the
potential extension of the CLL Permit; under "Outlook", our
estimated capital expenditure budgets for fiscal 2023, Q4 2023 and
fiscal 2024, and the capital expenditures that we intend to make in
our TDF Concessions, Mendoza Concessions and CLL Permit during each
period; under "About Crown Point", all elements of the Company’s
business strategy and focus. In addition, note that information
relating to reserves and resources is deemed to be forward-looking
information, as it involves the implied assessment, based on
certain estimates and assumptions that the reserves and resources
described can be economically produced in the future. The reader is
cautioned that such information, although considered reasonable by
the Company, may prove to be incorrect. Actual results achieved
during the forecast period will vary from the information provided
in this document as a result of numerous known and unknown risks
and uncertainties and other factors. A number of risks and other
factors could cause actual results to differ materially from those
expressed in the forward-looking information contained in this
document including, but not limited to, the following: that the
Company experiences delays building the pipeline to the Rio Cullen
marine terminal or is unable to complete the pipeline; that the
Company is unable to truck oil to the Enap refinery and/or the Rio
Cullen marine terminal and/or that the cost to do so rises and/or
becomes uneconomic; that the price received by the Company for its
oil is at a substantial discount to the Brent oil price; and the
risks and other factors described under “Business Risks and
Uncertainties” in our MD&A for the three and nine months ended
September 30, 2023 and under “Risk Factors” in the Company’s most
recently filed Annual Information Form, which is available for
viewing on SEDAR+ at www.sedarplus.ca. With respect to
forward-looking information contained in this document, the Company
has made assumptions regarding, among other things: the cost to
build the aforementioned pipeline and the timing thereof; trucking
costs; that the COVID-19 (coronavirus) pandemic will not have a
material impact on the Company and our operations going forward,
including on (i) the demand for crude oil, NGLs and natural gas,
(ii) our supply chain, including our ability to obtain the
equipment and services we require, (iii) our ability to produce,
transport and/or sell our crude oil, NGLs and natural gas, and (iv)
the ability of our customers, joint venture partners and other
contractual counterparties to comply with their contractual
obligations to us; the ability and willingness of OPEC+ nations and
other major producers of crude oil to balance crude oil production
levels and thereby sustain higher global crude oil prices; the
impact of inflation rates in Argentina and the devaluation of the
Argentine peso against the USD on the Company; the impact of
increasing competition; the general stability of the economic and
political environment in which the Company operates (including
following the upcoming run-off election to elect the new President
and Vice-President of Argentina), including operating under a
consistent regulatory and legal framework in Argentina; future oil,
natural gas and NGL prices (including the effects of governmental
incentive programs and government price controls thereon); the
timely receipt of any required regulatory approvals; the ability of
the Company to obtain qualified staff, equipment and services in a
timely and cost efficient manner; drilling results; the costs of
obtaining equipment and personnel to complete the Company’s capital
expenditure program; the ability of the operators of the projects
which the Company has an interest in to operate the fields in a
safe, efficient and effective manner; that the Company will not pay
dividends for the foreseeable future; the ability of the Company to
obtain financing on acceptable terms when and if needed; the
ability of the Company to service its debt repayments when
required; field production rates and decline rates; the ability to
replace and expand oil and natural gas reserves through
acquisition, development and exploration activities; the timing and
costs of pipeline, storage and facility construction and expansion
and the ability of the Company to secure adequate product
transportation; currency, exchange, inflation and interest rates;
the regulatory framework regarding royalties, taxes and
environmental matters in Argentina; and the ability of the Company
to successfully market its oil and natural gas products. Management
of Crown Point has included the above summary of assumptions and
risks related to forward-looking information included in this
document in order to provide investors with a more complete
perspective on the Company’s future operations. Readers are
cautioned that this information may not be appropriate for other
purposes. Readers are cautioned that the foregoing lists of factors
are not exhaustive. The forward-looking information contained in
this document are expressly qualified by this cautionary statement.
The forward-looking information contained herein is made as of the
date of this document and the Company disclaims any intent or
obligation to update publicly any such forward-looking information,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable Canadian securities
laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
________________________________
1 Non-IFRS financial ratio. See "Non-IFRS and Other Financial
Measures".2 Capital management measure. See "Non-IFRS and Other
Financial Measures".
Crown Point Energy (TSXV:CWV)
과거 데이터 주식 차트
부터 12월(12) 2024 으로 1월(1) 2025
Crown Point Energy (TSXV:CWV)
과거 데이터 주식 차트
부터 1월(1) 2024 으로 1월(1) 2025
