Reported net income of $8.1 million as compared to a net loss of $8.7 million in Q1 2020; Recognized an $8.2 million gain on the acquisition of the 50% working interest in the Chañares Herrados Concession; Raised $5.3 million of net proceeds from the issuance of $3.38 million principal amount of Class I notes payable and $2.07 million (ARS 190 million) principal amount of Class II notes payable. The Class I and Class II notes payable are repayable in eight equal installments commencing on July 1, 2022 until the maturity date of March 31, 2024 and bear interest at 8% per annum and BALDAR Privados (currently 34%) plus 6.75% per annum, respectively.
During Q1 2021, the Company: Q1 2021 SUMMARY
Was awarded, together with partner Petrolera Aconcagua Energía (“Aconcagua”), a 25 year exploitation license for the 40.6 km2 Chañares Herrados producing oil block (the “CH Concession”), located in the Cuyo Basin approximately 50 km south of Mendoza City, Province of Mendoza. The Company and Aconcagua each hold a 50% working interest in the CH Concession which will be operated by Aconcagua.Consideration for the exploitation license was a cash payment of $8.33 million ($4.17 million net to Crown Point) to the Province. Under the terms of the exploitation license agreement, the joint venture will pay a 13% royalty on oil production and commit to an $85.7 million ($42.85 million net to Crown Point) ten-year work program which includes well work overs, infrastructure optimization and a multi- well drilling program. In the following discussion, the three months ended March 31, 2021 may be referred to as “Q1 2021” and the comparative three months ended March 31, 2020 may be referred to as “Q1 2020″.
Reported an operating netback of $13.01 per BOE, up from $5.75 per BOE in Q1 2020 due to the increase in oil prices in Argentina and a reduction in per BOE operating costs due to lower transportation and hauling costs; Repaid $0.7 million (ARS 60.2 million) and obtained $0.6 million (ARS 50 million) of short-term working capital loans; and Received an average of $1.80 per mcf for natural gas and $56.16 per bbl for oil compared to $2.01 per mcf for natural gas and $43.83 per bbl for oil received in Q1 2020;
Earned $3.5 million of oil and natural gas sales revenue on total average daily sales volumes of 1,310 BOE per day, down from $4.3 million of oil and natural gas sales revenue earned on total average daily sales volumes of 1,714 BOE per day in Q1 2020 due to ongoing natural decline rates in gas production and lower oil sales due to shipping delays; Reported net cash provided by operating activities of $1.6 million and funds flow from operating activities of $0.5 million as compared to Q1 2020 which reported $0.5 million of net cash used by operating activities and $0.5 million of funds flow from operating activities;
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