Pioneering Agreement in Santa Cruz Region
CALGARY, Alberta -- A significant partnership has emerged between Pan American Energy (PAE) and Crown Point Energía S.A. (a wholly owned subsidiary of Crown Point Energy Inc. (TSXV – CWV)). This collaboration marks an essential advancement in hydrocarbon exploration in productive areas like Piedra Clavada and Koluel Kaike located in the province of Santa Cruz.
Transition and Operational Continuity
The assignment of rights, now approved by provincial authorities, has prompted the initiation of a transition that ensures the seamless operation of these valuable assets. Through this agreement, Crown Point Energía significantly boosts its footprint in Argentina, stepping into the role of an operator within the Santa Cruz region.
Meanwhile, PAE is set to maintain a robust focus on its active operations in Santa Cruz, particularly in the Cerro Dragón Santa Cruz region and pursuing ambitious explorative initiatives in the Meseta Cerón Chico area, both critical to their northern strategy.
Investment Commitments That Strengthen Growth
In a noteworthy development, Crown Point Energía has set forth a significant investment pledge of USD 41.5 million to be expected by the end of 2026 for the Piedra Clavada and Koluel Kaike regions. The overall investment could surge to an impressive USD 90.8 million should a proposed work program come to fruition, which will entail the drilling of an additional 10 wells, alongside various other operational activities.
Extending their commitment beyond 2026, Crown Point plans to invest another USD 20 million with plans to drill 6 additional wells, complemented by nearly USD 20 million to be invested in further drilling initiatives for 6 more wells if the plans proceed as anticipated.
Long-Standing Impact in Santa Cruz
For several decades, Pan American Energy has rigorously pursued investment strategies in the Santa Cruz region to bolster local communities. From 2005 to 2023, PAE poured in over USD 1.4 billion into Santa Cruz. Looking ahead, the company anticipates 2024 investments to reach nearly USD 90 million. This encompasses the drilling of 22 developmental wells, alongside an ambitious plan involving 25 well interventions within the Cerro Dragón Santa Cruz area and exploratory drilling in the Meseta Cerón Chico area. Success in exploratory drilling could kick off a formidable work plan introducing 35 more producer and injector wells in the upcoming years.
Crown Point's Promising Horizon
As an international entity involved in oil and gas exploration and development, Crown Point positions itself as a growing force in Alberta, Canada, while its operations extend throughout Argentina. Focused on several prolific basins including Austral, Neuquén, and Cuyano, Crown Point aims to amalgamate a portfolio rich in producing properties and enhancement prospects that are pivotal for sustained growth.
Frequently Asked Questions
What agreement did Pan American Energy reach with Crown Point Energía?
They reached an agreement for the assignment of rights over two hydrocarbon areas in Santa Cruz, enhancing operational continuity.
What are the investment commitments announced?
Crown Point Energía committed to an investment of USD 41.5 million by the end of 2026, potentially increasing to USD 90.8 million with a proposed work program.
How much has PAE invested in Santa Cruz over the years?
PAE has invested over USD 1.4 billion in Santa Cruz from 2005 to 2023, demonstrating its commitment to the region.
What are the future plans for drilling activity?
For 2024, PAE plans to drill 22 development wells and conduct 25 well interventions, along with exploratory drilling in new areas.
What is Crown Point's operational strategy going forward?
Crown Point will focus on enhancing its portfolio with producing properties and exploration opportunities in key basins in Argentina.
