Crown Point Energy, Inc. · TSXV:CWV.H

Crown Point Energy — Investor Presentation (March 2013)

36 slides from Crown Point Energy's investor presentation, March 2013

  1. Slide 1: Corporate Presentation

    Corporate Presentation MARCH 2013 1

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements Certain information regarding Crown Point set forth in this document may constitute forward-looking statements under applicable securities laws, including the following: all details regarding the proposed acquisition of Antrim Argentina, including the attributes of the ass

  3. Slide 3: Forward Looking Statements

    Forward Looking Statements There are also risks inherent in the nature of the proposed Arrangement, including failure to realize anticipated production levels and resource and reserves estimates, anticipated cost savings and other synergies; risks regarding the integration of Antrim Argentina into C

  4. Slide 4: Executive Summary

    Executive Summary  Strong Production and Cash Flow Base Today  Production from 2 fields; Tierra del Fuego and El Valle 1  Tierra del Fuego, a world class producing asset with significant development growth opportunities  2P NPV(10) of TDF and El Valle $77 MM, long reserve production ratios  Lev

  5. Slide 5: Crown Point – Argentina Overview

    Crown Point –Argentina Overview South America  Tierra del Fuego (Austral Basin)  51,000 net ha/126,000 ac (25.78% W.I.)  Large inventory of development locations ARGENTINA adjacent to company operated infrastructure ARGENTINA  Gas weighted producing assets with development and exploitation upsid

  6. Slide 6: A Balanced Portfolio: Managing Our Growth

    A Balanced Portfolio: Managing Our Growth • Focus on Cerro de Los Leones (Neuquén Basin) C. Significant Exploration • High Impact Conventional Upside Exploration & Focus on High Exploration • Vaca Muerta; Non Conventional Oil Impact Shale Upside • Continued development in Tierra del Fuego; Focus on

  7. Slide 7: Management & Board of Directors

    Management & Board of Directors MANAGEMENT BOARD OF DIRECTORS Murray D. McCartney – President & CEO, Director Gordon Kettleson - Chairman  30 years petroleum industry experience in both private and public  Founding Director and previous CEO of Crown Point Ventures companies  CEO of Interwest Ente

  8. Slide 8: Crown Point Current Metrics

    Crown Point Current Metrics Common shares outstanding (mm) 104.5 Market cap ($mm)* 26.10 Working capital ($mm) 14.00 Enterprise value ($mm) 12.00 Current production (boepd) 1,850 Reserves (mboe) Proved 4,421 Per thousand shares 42.6 EV/boe – proved $7.46 Proved + probable 7,810 Per thousand shares 7

  9. Slide 9: Key Milestones & Timeline

    Key Milestones & Timeline Crown Point Development Milestone • Tierra del Fuego Concession Cerro de Los Leones • TDF concession extension approval Q2 2013 • CLL – Seismic interpretation Q1 Q2 • Drilling in TDF Q3 • CLL licensing and approvals Q2 Q3 • Puesto Quince and Los Flamincos – 6 gas wells • CL

  10. Slide 10: Tierra del Fuego

    Tierra del Fuego Current Production, Continued Low Risk Development and Exploitation Upside Natural Gas Weighted – Rising Argentine Natural Gas Price Environment 10

  11. Slide 11: Tierra del Fuego – Concession Map

    Tierra del Fuego – Concession Map  Net working interest in JV – 25.78% Rio Cullen Concessions Oil pools  Rising natural gas prices – newly Gas pools announced new gas price of Main gas pipeline $7.50/mcf ARGENTINA Buenos Aires  Extensive net land holdings - D.P. Plant 51, 000 ha /126,000 net ac C

  12. Slide 12: Opportunity Overview

    Opportunity Overview  Tierra del Fuego  Three licenses – extension through 2026 approved by provincial administration, awaiting ratification by legislature  Three major producing fields (net 6 mmboe 2P*) – long life reserves  Operating netback ~$14/boe (at current pricing - $2.50/mcf)  Drilling

  13. Slide 13: Location Map: Fields, Facilities and Sales Routes

    Location Map: Fields, Facilities and Sales Routes Río Cullen Área: 385 Km2 Gas: 1) Prior to acquiring an interest in the blocks, gas production Comencement of operations: was around 9.2mmcf/d. 1991 Total wells: 44 (7 producers)) 2) The appraisal and development of the Los Flamencos and Angostura Los

  14. Slide 14: La Marina Compression Plant - 2008

    La Marina Compression Plant - 2008 TURBO-COMPRESSOR LA MARINA CONTROL PANEL HOUSE COMPRESSION PLANT A. Maximum design compression gas rate : 105 mmcf/d B. Two turbo compressors installed with 10100 BHP (turbina ALLISON 501-KC) C. Two motogenerators: CAT 220 Kva (gas consumption); CAT 180 Kva (Diesel

  15. Slide 15: Tierra del Fuego Low Risk Upside – Los Violetas

    Tierra del Fuego Low Risk Upside – Los Violetas  Primary target – Cretaceous Concessions Gas field Springhill Sandstones Gas upside  Drilling depths 1,700 – 2,500 m Oil field ARGENTINA Bald high (northeast – southwest) Buenos Aires 3D seismic  Pay thicknesses 5 – 10 m  Porosity 18 – 20% Extensio

  16. Slide 16: Las Violetas Development and Exploitation Potential

    Las Violetas Development and Exploitation Potential San Sebastian Vega-Pleyade ARGENTINA Buenos Aires La Sara Offshore Las Violetas Las Violetas Austral Basin Puesto Quince (Tierra del Fuego) Los Patos Rio Chico Los Patos West Rio Chico South Los Flamencos Los Flamencos - San Luis Lead Sur de la Can

  17. Slide 17: Puesto Quince Prospective Resources – Up Side

    Puesto Quince Prospective Resources – Up Side Las Violetas Sur and Puesto Quince (Las Violetas Block) Depth Structural – Springhill Formation First Development Program Sequenced by faults; analogous to Los Violetas and Los Patos pools. WUT (-1940) OGIP (BCF) 200 Gas Resources OOIP (MMbbl) 90 Oil Res

  18. Slide 18: Volumetric Calculation of Prospect Puesto Quince x-3

    Volumetric Calculation of Prospect Puesto Quince x-3 PQ.x- 3 PQ.x-3 NET PRESENT VALUE Gross Wells Capex (100%) PayOut NPV(0%) NPV(5%) NPV(10%) NPV(15%) NPV(20%) NPV(25%) Resources # MM$ years MM$ MM$ MM$ MM$ MM$ MM$ MMBOE Total 6.2 13 32.5 2.4 121 96 77 64 54 46 Project 18

  19. Slide 19: Puesto Quince Type Gas Wells

    Puesto Quince Type Gas Wells Puesto Quince Type Gas Well - Average Puesto Quince Type Gas Well – Good Well 6,000 2,500 5,000 2,000 4,000 mmcfd 1,500 Gas mmcfd Oil bopd mmcfd Gas mmcfd Oil bod 3,000 1,000 2,000 500 1,000 - - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2013 (6) 20

  20. Slide 20: Argentina – Gas Pricing – Crown Point TDF sales

    Argentina – Gas Pricing – Crown Point TDF sales 8.00 7.00 Average Blended Price US$/mcf Gas Plus Pricing ~ US$ 4.1/mcf 6.00 New Gas 5.00 4.00 3.00 2.00 1.00 - Nov-10 Nov-11 Nov-12 Mar-10 May-10 Mar-11 May-11 Mar-12 May-12 Mar-13 Jul-10 Jul-11 Jul-12 Sep-10 Sep-11 Sep-12 Jan-10 Jan-11 Jan-12 Jan-13 2

  21. Slide 21: Cerro de Los Leones

    Cerro de Los Leones High Impact Conventional Exploration & Vaca Muerta Non Conventional Oil Shale Upside 21

  22. Slide 22: El Valle – Exploration and Development

    El Valle– Exploration and Development EL VALLE FIELD DEVELOPMENT 3000 2500 2000 1500 1000 500 0 2009-2010 2010-2011 2011-2012 1P 2P 3P MBOE 400 100 6 300 80 Nº km2 WELLS 200 60 4 40 100 2 1959 1965 1971 20 1977 0 1983 1989 1995 2001 2007 2013 0 0 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 201

  23. Slide 23: Cerro de Los Leones – North Neuquén Basin Oil Rich Neighbourhood

    Cerro de Los Leones – North Neuquén Basin Oil Rich “Neighbourhood” Concession  Large 124,000 ha/ 307,000 acres exploration Oil pools Gas pools concession Basin outline  100% operated working interest Tecpetrol  US$13.5 mm work commitment over 3 years ARGENTINA operated for seismic and drilling Bu

  24. Slide 24: Cerro de Los Leones – North Neuquén Basin Oil Rich Neighbourhood

    Cerro de Los Leones – North Neuquén Basin Oil Rich “Neighbourhood” Malargue  Llancanelo Field: OOIP 2 billion bbls of heavy oil – YPF project – Vaca Muerta Concession sourced Oil pools Gas pools  Vega del Sol – YPF 1990 discovery – Leads Main pipeline single well produced 350bbl/d of oil. Roads 3D

  25. Slide 25: Geologic Analogs

    Geologic Analogs  The Cerro Chachao x-1 & 2 wells suggest a gypsum tectonic wall of near 1,000 m, as in Puesto Rojas Este x-1 well Puesto Rojas Este Sketch Cerro de Los Leones Sketch PUESTO Vega del Sol ROJAS WELLS PRE X-1 PDA X-1PDA X-1 ~ CCh x-1 ~CoH x-1 GN GN Q Au GM Au GC GC GM T HUITRIN T H GY

  26. Slide 26: Cerro de Los Leones – Single Well Case

    Cerro de Los Leones – Single Well Case Base Case – Single Well Capped by Facilities 1,200 1,000 800 Oil bopd BOPD 600 400 200 - 2013 (4) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Revenue NPV (M$US) 0% 10% 15% NPV – revenue after capital 114 71 59 Reserves Gross Before Economic

  27. Slide 27: Cerro de Los Leones – Vaca Muerta Potential

    Cerro de Los Leones – Vaca Muerta Potential  Total potential area in oil generation window ~350 km2 (135 mi2) 350 km2 area  Llancanelo heavy oil field is Vaca Muerta sourced oil from Cerro de Los Leones Oil migration Concession  Nearby YPF successful Vaca Muerta Shale test to the south  Vaca Mue

  28. Slide 28: El Valle Concession

    El Valle Concession Repeatable Low Risk Drilling 28

  29. Slide 29: El Valle Concession – Low Risk Oil Exploration and Development

    El Valle Concession – Low Risk Oil Exploration and Development  Located on southern flank of the San Jorge Basin ARGENTINA  High definition 3D seismic Buenos Aires Concession over entire concession Oil pools  Large inventory of shallow drilling locations targeting medium oil exploration / San Jor

  30. Slide 30: El Valle: Overview

    El Valle: Overview  Shallow (750 - 1,000 m) 1 km stacked oil bearing fluvial sandstones  High success rate: +90%  Production ~250 bopd net Faults Oil pool Drilled oil wells  El Valle’s average well initial rate of 100 bopd and recovers Formation Lithology Remarks Drilled gas wells Fluvial-Deltai

  31. Slide 31: 2013 Summary

    2013 Summary MARCH 2012 31

  32. Slide 32: 2013 Development and Exploitation Plan

    2013 Development and Exploitation Plan  Tierra del Fuego – Gas weighted long life reserves with significant upside  Las Violetas  Drill 6 low risk gas development wells  Drill 1 exploration well  Increase percentage of produced gas qualifying for higher gas plus pricing  Rio Cullen and Angostu

  33. Slide 33: 2013 Development and Exploration Plan

    2013 Development and Exploration Plan  Cerro de Los Leones – High Impact Neuquén Concession  Process and interpret new 2 and 3D seismic data  Drill 2-4 high impact exploration targets for conventional oil and gas – potential of 400-1,000 bopd/well  Evaluate the Vaca Muerta Oil Shale potential ov

  34. Slide 34: Argentina Gas Market Supply/Demand Imbalance

    Argentina Gas Market Supply/Demand Imbalance 2011 Gas Consumption 1.6 TCF  Domestic 85% @ US$ 1.9/mmBTU  Bolivia Imports 6% @ US$9.3/mmBTU  LNG Imports 9% @ US$ 12.7/mmBTU Source G&G Energy Consultants, Buenos Aires – Houston Nov 2012 34

  35. Slide 35: Crown Point Take Aways

    Crown Point Take Aways  Expert Argentine team  In country management has successful track record (YPF, Shell, Total, Alberta Energy, Rio Alto, Antrim) operating and growing profitable upstream businesses in Argentina over the past +30 years; Technical staff has wide exposure to exploration and pro

  36. Slide 36: Corporate Presentation

    Corporate Presentation MARCH 2013 36

Crown Point Energy — Investor Presentation (March 2013) on 6ix