CALGARY, ALBERTA -- (Marketwire) -- 12/14/12 -- Crown Point Energy Inc. (TSX VENTURE: CWV) ("Crown Point" or the "Company") is pleased to announce that it has achieved significant growth in its corporate reserve volumes and values as of August 31, 2012.
The Company's gross total proved oil and liquid reserves increased to 1,674 thousand barrels ("Mbbls") as of August 31, 2012, a 166% increase over 630 Mbbls as of August 31, 2011. The Company's gross total proved natural gas reserves were 16,479 million cubic feet ("MMcf") as at August 31, 2012. Crown Point did not have any natural gas reserves as of August 31, 2011.
The Company's gross total proved plus probable oil and liquids reserves increased to 3,192 Mbbls as of August 31, 2012, an 86% increase over 1,716 Mbbls as of August 31, 2011. The Company's gross total proved plus probable natural gas reserves were 27,709 MMcf as of August 31, 2012.
The Company's gross total proved plus probable plus possible oil and liquids reserves increased to 4,201 Mbbls as of August 31, 2012, a 61% increase from 2,611 Mbbls as of August 31, 2011. The Company's gross total proved plus probable plus possible natural gas reserves were 32,464 MMcf as of August 31, 2012.
The net present value ("NPV") of the future net revenue ("FNR") of the Company's reserves, discounted at 10%, saw similar increases. The NPV of FNR of the Company's total proved reserves on a before tax basis was US$38.0 million as of August 31, 2012, a 94% increase over US$19.6 million as of August 31, 2011. The NPV of FNR of the Company's total proved plus probable reserves on a before tax basis increased to US$77.0 million as at August 31, 2012, a 60% increase from the US$48.1 million as of August 31, 2011. The NPV of FNR of the Company's total proved plus probable plus possible reserves on a before tax basis increased to US$107.3 million, a 62% increase from US$66.1 million as at August 31, 2011.
Crown Point is pursuing a dual strategy of organic growth through the drill bit as well as growth through the acquisition of quality oil and gas assets. Crown Point's independent Reserve Evaluation dated August 31, 2012 show significant increases in oil and natural gas reserves as compared to the prior year. A large part of the increase was achieved through the acquisition of Antrim Argentina S.A. on May 28, 2012. Additional reserve volumes were added during 2012 through the drill bit at El Valle. The Antrim acquisition provided Crown Point with the opportunity to acquire a highly natural gas levered asset during a time of rising domestic natural gas prices in Argentina.
SUMMARY OF RESERVES AS OF AUGUST 31, 2012(Forecast Prices & Costs)AS COMPARED TO AUGUST 31, 2011---------------------------------------------------------------------------- Company Gross Company Oil and Gross Liquids % Natural Gas %Reserves Category (Mbbls) Change (Mmcf) Change---------------------------------------------------------------------------- 2012 2011 2012 2011----------------------------------------------------------------------------Proved developed producing 1,100 564 +95% 9,068 - n/a----------------------------------------------------------------------------Proved developed non-producing 242 - n/a 272 - n/a----------------------------------------------------------------------------Proved undeveloped 332 66 +403% 7,140 - n/a----------------------------------------------------------------------------Total proved 1,647 630 +166% 16,479 - n/a----------------------------------------------------------------------------Total probable 1,517 1,086 +40% 11,230 - n/a----------------------------------------------------------------------------Total proved plus probable 3,192 1,716 +86% 27,709 - n/a----------------------------------------------------------------------------Total possible 1,009 895 +13% 4,755 - n/a----------------------------------------------------------------------------Total proved plus probable plus 4,201 2,611 +61% 32,464 - n/a possible-------------------------------------------------------------------------------------------------------------------------------------------------------- Company Total Gross Reserves %Reserves Category MBOE Change---------------------------------------------------------------------------- 2012 2011----------------------------------------------------------------------------Proved developed producing 2,611 564 +363%----------------------------------------------------------------------------Proved developed non-producing 288 - n/a----------------------------------------------------------------------------Proved undeveloped 1,522 66 +2206%----------------------------------------------------------------------------Total proved 4,421 630 +602%----------------------------------------------------------------------------Total probable 3,389 1,086 +212%----------------------------------------------------------------------------Total proved plus probable 7,810 1,716 +355%----------------------------------------------------------------------------Total possible 1,802 895 +101%----------------------------------------------------------------------------Total proved plus probable plus possible 9,612 2,611 +268%----------------------------------------------------------------------------SUMMARY OF NET PRESENT VALUE OF FUTURE NET REVENUEAS OF AUGUST 31, 2012(Forecast Prices & Costs)---------------------------------------------------------------------------- Net Present Values of Future Net Revenue Before Income Taxes Discounted at (%/year)---------------------------------------------------------------------------- 0% 5% 10% 15% 20%Reserves Category MMUS$ MMUS$ MMUS$ MMUS$ MMUS$----------------------------------------------------------------------------Proved developed producing 30.08 27.08 24.67 22.70 21.06----------------------------------------------------------------------------Proved developed non-producing 8.55 7.35 6.44 5.72 5.14----------------------------------------------------------------------------Proved undeveloped 12.41 9.20 6.86 5.13 3.82----------------------------------------------------------------------------Total proved 51.05 43.63 37.97 33.55 30.02----------------------------------------------------------------------------Total probable 65.27 49.75 39.03 31.38 25.74----------------------------------------------------------------------------Total proved plus probable 116.31 93.38 77.00 64.93 55.77----------------------------------------------------------------------------Total possible 53.56 39.55 30.28 23.90 19.35----------------------------------------------------------------------------Total proved plus probable plus possible 169.87 132.93 107.29 88.83 75.11----------------------------------------------------------------------------1. Reserves volumes and values are based on the report prepared by McDaniel and Associates Consultants Ltd. for the Company effective as of August 31, 2012 in accordance with National Instrument 51-101 ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook. "Possible reserves" are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.2. The estimated net present values of future net revenues disclosed do not represent fair market value.
