HispanicBusiness

PRODUCTION

The bulk of the Company's production and reserves in the Tierra del Fuego area are located on the Las Violetas Concession. Crown Point's net production at Tierra del Fuego has increased 15 percent over historical production levels following a fracture stimulation program carried out on five wells on the Las Flamencos gas pool earlier this year. This fracture program primarily targeted wells eligible to receive the higher Gas Plus prices of $4.10/MMBtu (approximately $4.24/mcf).

CERRO DE LOS LEONES, NEUQUEN BASIN, ARGENTINA

The Company's 100% interest in the Cerro de Los Leones exploration concession covers approximately 306,646 acres in the Mendoza portion of the Neuquen Basin.

EXPLORATION, DEVELOPMENT AND DRILLING PLANS

Crown Point has completed the Cerro de los Leones seismic programs comprised of 122 kilometers of 2D seismic and 143 square kilometers of 3D seismic. Field recording of both seismic programs has been completed and the data has been sent in for processing. The Company expects to have the processed data ready for interpretation in early February 2013. The total cost of the two seismic programs is estimated to be $6 million.

Drilling on various conventional plays is expected to commence in 2013, following interpretation of the seismic programs. Information obtained from these wells may assist Crown Point in determining the economic viability of the Vaca Muerta shale play on the Cerro de Los Leones Concession. A second 3D seismic program is planned for the eastern portion of the concession targeting the Loncoche, Neuquen Group and Huitrin resource type plays. This program may be shot in late 2013 or 2014 and would be followed up with the drilling of one to two wells targeting the above mentioned plays.

Following the initial drilling phase, Crown Point may consider additional exploration and development drilling in the area, including the possibility of drilling vertical and horizontal tests in the Vaca Muerta shale play.

EL VALLE, ARGENTINA

El Valle has three distinct productive sedimentary formations, which, in descending order from shallow to deep, are the Canadon Seco, Caleta Olivia and Mina el Carmen. Each of these formations may contain multiple discrete hydrocarbon bearing sandstone zones. Typically, the Canadon Seco oil produces medium grade oil (API gravity that ranges from 16 to 22 degrees ), while the Caleta Olivia and Mina el Carmen produce lighter oil (API gravity of approximately 30 degrees ). By continuing to re-interpret the seismic data and integrating recent drilling results, the Company has developed a drilling inventory consisting of 12 development drilling and eight new exploration drilling targets in the El Valle field. Additionally, potential exists for secondary recovery programs such as water flood or horizontal drilling, plus workovers and recompletions on existing wells.

2012 DRILLING PROGRAM

Since Crown Point commenced drilling operations on the El Valle Concession, the Company has drilled and completed 18 wells (16 oil wells, 1 suspended potential oil well and 1 non-producing natural gas well) with no dry holes.

During calendar 2012, to August 31, 2012, Crown Point drilled 6 wells on the El Valle Concession for a total cost of $11.7 million. This program, which commenced in April 2012, was focused on the drilling of development oil wells with multiple-zones targeted in the Canadon Seco and Caleta Olivia formations in the south east and south central areas of El Valle.