Corporate Presentation S E P A C - N O V E M B E R

Transcription

1 Corporate Presentation S E P A C - N O V E M B E R

2 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 assets to be acquired (including the resource potential and recoverable resources of such assets) and the acquisition metric statistics provided; pro forma financial and operation information in respect of Crown Point on a post-closing basis; our belief that the acquisition is accretive on various metrics; our business plans and exploration and development plans in 2012 and beyond; our production targets over the next 2 to 5 years; the estimated resource potential of each of our seven concessions post-closing; the implication that production, resource and reserve statistics obtained from properties in the vicinity of our properties will be indicative of production, resource and reserve characteristics on our properties; the details of our 2012 exploration and development plans for each of our properties, including the number of wells we intend to drill, the gross estimated original oil in place, the estimated net recoverable oil, the potential net production additions from initial production rates, estimated annualized cash flow additions, and capital expenditure levels; initial production rates; anticipated netbacks, well costs, recycle ratios and payout periods on Cerro Los Leones wells; estimated future production levels for certain of our properties; and the benefits that we anticipate deriving from the acquisition. In addition, please note that all information relating to resources and reserves is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be economically produced in the future. The forward-looking information is based on certain key expectations and assumptions made by Crown Point, including expectations and assumptions concerning: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates and resource and reserve volumes; the timing of receipt of regulatory and shareholder approvals; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Although Crown Point believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Crown Point can give no assurances that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These risks include, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from labour unrest, delays resulting from our inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, Argentina, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. 2

3 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 Crown Point; incorrect assessment by Crown Point of the value of Antrim Argentina; and failure to obtain the required shareholder, court, regulatory and other third party approvals. Readers are cautioned that the foregoing list of factors is not exhaustive. This document also contains forward-looking information concerning the anticipated completion of the Arrangement and the anticipated timing thereof. Crown Point has provided these anticipated times in reliance on certain assumptions that it believes are reasonable, including assumptions as to the time required to prepare meeting materials for mailing, the timing of receipt of the necessary regulatory and court approvals and the satisfaction of and time necessary to satisfy the conditions to the closing of the acquisition. These dates may change for a number of reasons, including unforeseen delays in preparing meeting materials, inability to secure necessary regulatory or court approvals in the time assumed or the need for additional time to satisfy the conditions to the completion of the acquisition. In addition, there are no assurances the acquisition will be completed. Accordingly, readers should not place undue reliance on the forward-looking information contained in this document concerning these times. Crown Point's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. Additional information on these and other factors that could affect Crown Point s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( or Crown Point s website ( The forward-looking statements contained in this document are made as at the date of this document and Crown Point does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil in Argentina as compared to the current price of natural gas in Argentina is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. 3

4 Crown Point Argentina Overview South America ARGENTINA ARGENTINA Buenos Aires Neuquén Basin San Jorge Basin Austral Basin Cerro Los Leones, 100% WI - 124,000 ha/306,000 ac (Neuquén Basin) Exploration block with both conventional and non-conventional upside 51,000 net ha/126,000 ac in Tierra del Fuego (Austral Basin) Large inventory of development locations adjacent to company operated infrastructure Gas weighted producing assets with development and exploration upside well positioned to benefit from rising natural gas prices San Jorge Basin 5,800 net ha/14,300 ac Low risk oil prone basin, shallow, stacked reservoirs Access to infrastructure and in country markets 4

5 Management & Board of Directors MANAGEMENT Murray D. McCartney President & CEO, Director 30 years petroleum industry experience in both private and public companies Previously CEO of Cavell Energy and Adamant Energy Mateo Turic President & CEO, Argentina Operations, Director Former Director of Exploration and Production for YPF, Argentina and Brazil Senior Exploration Adviser to Apache Dr. Brian J. Moss Chief Operating Officer, Director Former Executive Vice President - Latin America - Antrim Energy Inc. Former Vice President, International - Rio Alto Exploration Ltd. Arthur J.G. Madden Chief Financial Officer 34 year of petroleum industry experience in both private and public companies Previously VP, Finance and CFO of Adamant Energy and Cavell Energy Director of Painted Pony Petroleum BOARD OF DIRECTORS Gordon Kettleson - Chairman Founding Director and previous CEO of Crown Point Ventures CEO of Interwest Enterprises Carlos Olivieri CPA Former Chief Financial Officer Repsol YPF Former President of Maxus Corporation (US YPF subsidiary) Denny Deren President of Excalibur Foxx Ltd. and Foxxhole Evacuation Systems Drilling / Completions Expert and oil industry safety provider John Clark President of Investments and Technical Management Corp. Previously President & Executive Chair of Laurasia Resource Keith Turnbull CA Former member of KPMG s executive management committee and former Office Managing Partner for KPMG s Calgary office Daniel Lanussol Executive Vice President, Argentina Operations 34 years of senior South American oil and gas experience with YPF 5

6 Crown Point Current Metrics Common shares outstanding (mm) Market cap ($mm)* 41.3 Working capital ($mm) 15.0 Enterprise value ($mm) 26.3 Current production (boepd) 2,070 Reserves (mboe) Proved 4,454 Per thousand shares 42.6 EV/boe proved 7.58 Proved + probable 7,777 Per thousand shares 74.4 EV/boe proved + probable 4.34 NAV PV10 ($mm)** 79.3 Per share 0.76 Land (net hectares - sections) 280,000 1,080 Reserve evaluator McDaniel & Assoc. Auditors KPMG LLP *Based on October 1, 2012 closing price of $0.395 ** Third Party Reports

7 Tierra del Fuego Natural Gas Weighted Low Risk Development and Exploration Upside Rising Argentine Natural Gas Price Environment 7

8 Tierra del Fuego Concession Map ARGENTINA Buenos Aires Austral Basin (Tierra del Fuego) CHILE Rio Cullen D.P. Plant Cdon Piedra Gaviotas ARGENTINA Cruz de Sur Los Patos Los Flamencos Concessions Oil pools Gas pools Main gas pipeline Las Violetas Rio Chico D.P. Plant Rio Grande Net working interest in JV 25.78% Extensive net land holdings - 51, 000 ha /126,000 net ac Current production ~1,600 net boed (85% gas weighted) Historical drilling success rate +90% Royalty 12% JV own and operate gas plant, dew point facility, high pressure gas lines, compressor stations (3), field batteries and storage Gas delivered to island and mainland markets via large diameter sales lines Oil stored at Apache operated tank farm and shipped to mainland refineries via tanker 25 km San Luis LPG Plant 8

9 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) Over 800 km 2 of high quality 3D seismic coverage Upside extensions mapped for all existing fields Exploration upside imaged on 3D seismic Facilities and infrastructure capacity available or easily up sizable to handle higher production volumes Target increase production to 2,400 boepd within 2 years * Independent NI Compliant Report, June 30,

10 Tierra del Fuego Low Risk Upside Los Violetas ARGENTINA Buenos Aires Extension to Los Patos Austral Basin (Tierra del Fuego) Concessions Gas field Gas upside Oil field Bald high 3D seismic Extension to San Sebastian Puesto Quince Exploration Extension to Rio Chico Primary target Cretaceous Springhill Sandstones Drilling depths 1,700 2,500 m (northeast southwest) Pay thicknesses 5 10 m Porosity 18 20% Trap type: south-west dipping fault blocks, up-dip closure provided by bounding faults downthrown to the northeast Depositional model fluvial, beach near shore regressive sequences Successful wells typically yield bcf at initial rates of 2 5 mmcfd plus liquids Internal estimates of bcf gross potential resource upside 10 km Extension to Los Flamencos 10

11 11 Tierra del Fuego Las Violetas Low Risk Upside

12 El Valle Concession Repeatable Low Risk Drilling 12

13 El Valle Concession Low Risk Oil Exploration and Development ARGENTINA Buenos Aires 50 km San Jorge Basin (El Valle) El Valle Concession Oil pools Located on southern flank of the San Jorge Basin High definition 3D seismic over entire concession Large inventory of shallow drilling locations targeting medium oil exploration / development Ownership in infrastructure / pipeline Operating netback ~ $35/bbl Increase production up to +1,000 bopd by end

14 El Valle: Overview 1 km Shallow (750-1,000 m) stacked oil bearing fluvial sandstones Formation Lithology Remarks Fluvial-Deltaic Patagonia Fmt Saramiento Fmt Rio Chico Fmt Salamanca Fmt Meseta Espinoza Fmt Cañadon Seco Fmt Potential Res Potential Res Potential Res Res (oil & gas) Oil Oil Faults Oil pool Drilled oil wells Drilled gas wells Possible injectors Locations High success rate: +90% Production ~400 bopd net El Valle s average well initial rate of 100 bopd and recovers up to 100,000 bbls Cost to drill and place well on production ~$1.5 to $2.0 mm Approximately 15 locations in inventory Mina El Carmen Fmt Pozo D-129 Fmt Lacustrine-Fluvial Reservoir oil Source rock Source rock Secondary recovery upside Aguada Bandera Fmt Bahia Laura Group 14

15 Cerro de Los Leones High Impact Conventional Exploration & Vaca Muerta Non Conventional Oil Shale Upside 15

16 Cerro Los Leones North Neuquén Basin Oil Rich Neighbourhood ARGENTINA Buenos Aires Neuquén Basin 100 km Cerro Los Leones Concession Oil pools Gas pools Basin outline Tecpetrol operated YPF operated Large 124,000 ha/ 307,000 acres exploration concession 100% operated working interest US$13.5 mm work commitment over 3 years for seismic and drilling Multiple areas for exploration and exploitation variety of conventional plays Expected pool sizes: 3-30 mmbbls per pool IP rates: boe/d per well Recoverable reserves per well ~750,000 boe Free look at unconventional shale in the Vaca Muerta while drilling high impact conventional targets Seismic completed in Q First drilling expected 1/H 2013 Year round access 16

17 Cerro Los Leones North Neuquén Basin Oil Rich Neighbourhood Concession Oil pools Gas pools Leads Main pipeline Roads 3D seismic 2D seismic Malargue Llancanelo Llancanelo Field: OOIP 2 billion bbls of heavy oil YPF project Vaca Muerta sourced Vega del Sol YPF 1990 discovery Valle de Rio Grande Field: produced 89 mmbbls; current production ~5,000 bopd Cajon de los Caballos Field: current production ~600 bopd Vega del Sol Cajon de los Caballos 25 km Valle de Rio Grande 17

18 Jurasic Source Reservoir Seal Cerro Los Leones - Multiple Targets P. Triassic Cretaceous Tertiary Formations Tertiary Volcanics Conventional targets: Sandstones in the Neuquén Group 1,000 1,500 m Limestones of the Huitrin & Rayoso Formations 1,200 1,600 m Sandstones in the Mendoza Group 1,500 2,000 m Sandstones in the Lotena Group 1,500 2,000 m PreCuyo +2,000 m Non conventional targets: Agrio Shales Vaca Muerta Shales 18

19 Cerro Los Leones Vaca Muerta Potential Total potential area in oil generation window ~350 km 2 (135 mi 2 ) 350 km 2 area Oil migration Llancanelo heavy oil field is Vaca Muerta sourced oil from Cerro Los Leones Concession Nearby YPF successful Vaca Muerta Shale test to the south 25 km Concession Vaca Muerta oil shale generation window Llancanelo oil field 3D seismic 2D seismic YPF Vaca Muerta Test Vaca Muerta recoverable oil resource potential >200 million barrels* Evaluation of Vaca Muerta starts * YPF recently published a Vaca Muerta recoverable estimate of 5.6 million recoverable bbls of oil per square mile CWV has used 25% of that estimate to calculate the Vaca Muerta resource potential at Cerro Los Leones

20 2013 Summary N O V E M B E R

21 2013 Development and Exploration Plan Cerro 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 bopd/well Evaluate the Vaca Muerta Oil Shale potential over 350 km 2 of prospective acreage >200 mmbbls of oil resource* El Valle Focused on Increasing Cash Flow Drill 6 low risk oil development wells Ramp production to ~1,000 bopd within 12 months * YPF recently published a Vaca Muerta recoverable estimate of 5.6 million recoverable bbls of oil per square mile CWV has used 25% of that estimate to calculate the Vaca Muerta resource potential at Cerro Los Leones 21

22 2013 Development and Exploration 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 Angostura Sur Shoot new 3D to identify drilling locations on Rio Cullen and Angostura Sur concessions 22

23 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 US$/mcf Argentina Gas Pricing Crown Point TDF sales 4.50 Gas Plus Average Blended Price US$/mcf Gas Plus Pricing ~ US$ 4.1/mcf 23

24 (e) 2013 (e) Current US$ Millions Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 1-jul 7-jul 13-jul 19-jul 25-jul MMcmd Productivity by gas well (thousand cmd/well) Gas Production (MMcmd) Argentina Gas Market Supply/Demand Imbalance NATURAL GAS EXPORTS AND IMPORTS IN ARGENTINA NATURAL GAS PRODUCTIVITY IN ARGENTINA Gas Production (Right) Gas production per Well (left) ENERGY SECTOR EXTERNAL TRADE BALANCE 10, Gas Consumption 1.6 TCF 5,000 Domestic US$ 1.9/mmBTU 0-5,000-10,000 Bolivia Imports US$9.3/mmBTU LNG Imports US$ 12.7/mmBTU -15,000 Exports Imports Energy Trade Balance 24 Source G&G Energy Consultants, Buenos Aires Houston Nov 2012

25 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 production in all major Argentine producing basins (Neuquén, San Jorge, Austral, Northwest) Argentina possesses excellent drilling opportunities with extensive proximal infrastructure Small company exposed to large game changing upside Vaca Muerta Shale Oil resource potential on large, 100% owned and operated block Leveraged to increasing natural gas pricing ($2.50 to +$4.00/mcf) High drilling success rate, with significant low risk production upside and high impact exploration plays 25

26 Corporate Presentation N O V E M B E R