Crown Point Energy Sees Significant Reserves Growth
Crown Point Energy Reports Reserve Information for 2024
Crown Point Energy Inc. (“Crown Point”, the “Company”, "we" or "our") recently revealed notable reserve information for the fiscal year concluding December 31, 2024. All financial figures are presented in United States dollars ("USD" or "US$") unless otherwise specified. The evaluation indicates a robust position in the energy market as Crown Point continues its growth trajectory.
Independent Evaluation of Reserves
The independent reserves engineer, Sproule Associates Limited ("Sproule"), undertook a comprehensive assessment of Crown Point’s oil and natural gas reserves as of December 31, 2024, utilizing forecast prices and costs in compliance with National Instrument 51-101 ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook"). This rigorous evaluation also included a calculation of the net present value associated with the company's reserves, providing critical insights into future revenue potentials.
Summary of Crown Point’s Reserves
As reported, Crown Point’s total proved plus probable ("2P") reserves were evaluated at an impressive 50,517 MBOE, reflecting a substantial increase from the previous year’s estimate of 7,813 MBOE. This growth can primarily be attributed to the significant acquisition of a 100% working interest in the Koluel Kaike and Piedra Clavada concessions that concluded on November 1, 2024, despite production losses amounting to 677 MBOE throughout the year.
Breakdown of Reserves
The detailed assessment showcases a variety of reserve categories, including:
- **Developed Producing:** 13,592 MBOE
- **Developed Non-Producing:** 5,365 MBOE
- **Undeveloped:** 5,663 MBOE
This categorization indicates a balanced portfolio of resources, demonstrating Crown Point's strategic focus on production enhancement while identifying unexplored potential reservoirs.
Net Present Value Insights
The estimated before-tax net present value of the company’s 2P reserves at a discounted rate of 10% reached $358.9 million, a remarkable increase from $74.6 million in 2023. This surge owes its existence to successful acquisitions and a rise in domestic oil and gas prices attributed to market normalization in Argentina. Importantly, approximately 44% of this net present value is associated with producing reserves, highlighting Crown Point’s efficient management of its resources.
Pricing Assumptions and Forecasts
Sproule provided valuable pricing assumptions based on current market trends, indicating bullish forecasts for both Brent crude oil and local pricing, which significantly influences the company’s anticipated revenue streams. For 2025, the forecast Brent crude oil price is estimated at $75.00 per barrel, with corresponding adjustments made for regional conditions, ensuring Crown Point is well-positioned for sustainable profitability.
About Crown Point Energy Inc.
Crown Point Energy Inc. is a leading international oil and gas exploration firm headquartered in Buenos Aires, Argentina, and incorporated in Canada. The company actively operates in multiple productive basins across Argentina, including the Austral Basin, San Jorge Basin, and Neuquén Basin. Crown Point's strategy centers on successfully establishing a diverse portfolio of production properties while focusing on exploration opportunities to drive future growth.
Frequently Asked Questions
What is the significance of the reserve growth reported by Crown Point?
The significant reserve growth reflects Crown Point's successful acquisitions and its strong future revenue potential, demonstrating substantial operational capabilities.
How does Crown Point’s market position influence its operations?
Crown Point’s position in a resource-rich region provides a strategic advantage, facilitating efficient production and competitive pricing in the market.
What is the role of Sproule in the evaluation process?
Sproule is an independent reserves engineer that evaluates Crown Point's reserves according to strict compliance standards, providing credible insights and financial valuations.
How has the market normalization affected Crown Point?
The ongoing normalization of the market in Argentina has positively influenced oil and gas prices, thus enhancing Crown Point's projected revenue from its reserves.
What are the company’s long-term growth strategies?
Crown Point aims to expand its portfolio through strategic acquisitions and enhanced production methodologies while actively exploring new opportunities for sustainable growth.
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