CWV: TSX.V
Selected information is outlined below and should be read in conjunction with the Company's
Q1 2024 SUMMARY
During Q1 2024, the Company:
- Reported net cash provided by operating activities and funds flow provided by operating activities of
$0.5 million ; - Earned
$6.1 million of oil and natural gas sales revenue on total average daily sales volumes of 1,302 BOE per day, lower than in the first quarter of 2023 due to lower gas sales volumes in the TDF Concessions in Q1 2024; - Received an average of
$4.51 per mcf for natural gas and$62.47 per bbl for oil; - Reported an operating netback of
$5.74 per BOE 1; - Obtained
$2.2 million of working capital, export financing and overdraft loans, and repaid$2.1 million of notes payable and$0.3 million of working capital and export financing loans; - Reported a loss before taxes of
$2.1 million and a net loss of$0.9 million ; - Reported a working capital deficit2 of
$19.9 million ; - As disclosed by press release issued on
February 9, 2024 , the Company entered into an agreement to acquire a 100% working interest in the Piedra Clavada and Koluel Kaike hydrocarbon exploitation concessions ("Santa Cruz Concessions"). The Company is currently in the process of obtaining the approval of the Province ofSanta Cruz and arranging the necessary financing to fund the cash portion of the purchase price (net of the$2.4 million deposit paid by the Company). The acquisition is expected to close inJuly 2024 .
SUBSEQUENT EVENTS
Subsequent to
- Obtained working capital and overdraft loans for a total amount of
$5.43 million and repaid$0.39 million on working capital loans. - Repaid the second
$2.1 million principal installment on the Series III Notes.
____ |
1 Non-IFRS financial ratio. See "Non-IFRS and Other Financial Measures". |
OPERATIONAL UPDATE
Tierra del Fuego Concession ("TDF" or "TDF Concessions")
- During Q1 2024, San Martin oil production averaged 405 (net 141) bbls of oil per day and Las Violetas concession natural gas production averaged 8,988 (net 3,122) mcf per day and oil production averaged 221 (net 77) bbls of oil per day.
Mendoza Concessions ("Mendoza Concessions")
- Oil production for Q1 2024 averaged 798 (net 399) bbls of oil per day from the CH Concession and 166 (net 83) bbls of oil per day from the PPCO Concession.
OUTLOOK
- The Company's capital spending on developed and producing assets for fiscal 2024 is budgeted at approximately
$4.9 million of which$1.5 million is for a well workover and improvements to facilities in the TDF Concessions and$3.4 million is for well workovers, facilities improvements and optimization in the Mendoza Concessions. The Company also plans to spend$0.5 million on the testing of the gas bearing sandstone layers of the Neuquén Group at CLL. During Q1 2024, the Company incurred$0.3 million of capital expenditures in the Mendoza Concessions.
SUMMARY OF FINANCIAL INFORMATION
(expressed in $, except shares outstanding) | 2024 | 2023 |
Current assets | 6,114,498 | 7,636,408 |
Current liabilities | (25,975,815) | (19,422,342) |
Working capital (1) | (19,861,317) | (11,785,934) |
Exploration and evaluation assets | 14,103,353 | 14,103,353 |
Property and equipment | 43,892,301 | 45,834,731 |
Total assets | 66,725,317 | 67,785,665 |
Non-current financial liabilities (1) | 12,749,949 | 18,317,856 |
Share capital | 56,456,328 | 56,456,328 |
Total common shares outstanding | 72,903,038 | 72,903,038 |
(expressed in $, except shares outstanding) | Three months ended | |
2024 | 2023 | |
Oil and natural gas sales revenue | 6,101,086 | 7,100,558 |
Loss before taxes | (2,127,175) | (2,393,195) |
Net loss | (901,734) | (1,861,570) |
Net loss per share (2) | (0.01) | (0.03) |
Net cash provided by operating activities | 463,430 | 923,774 |
Net cash per share “ operating activities (1)(2) | 0.01 | 0.01 |
Funds flow provided by operating activities | 471,494 | 135,443 |
Funds flow per share “ operating activities (1)(2) | 0.01 | 0.00 |
Weighted average number of shares “ basic and diluted | 72,903,038 | 72,903,038 |
(1) | We adhere to International Financial Reporting Standards ("IFRS"), however the Company also employs certain non-IFRS measures to analyze financial performance, financial position and cash flow. "Working capital" is a capital management measure. "Non-current financial liabilities" is a supplemental financial measure. "Net cash per share “ operating activities" is a supplemental financial measure. "Funds flow per share “ operating activities" is a supplemental financial measure. See "Non-IFRS and Other Financial Measures". |
(2) | All per share figures are the same for the basic and diluted weighted average number of shares outstanding in the periods. The effect of options is anti-dilutive in loss periods. Per share amounts may not add due to rounding. |
Sales Volumes
Three months ended | ||||
2024 | 2023 | |||
Total sales volumes (BOE) | 118,480 | 140,935 | ||
Light oil bbls per day | 898 | 995 | ||
NGL bbls per day | 26 | 15 | ||
Natural gas mcf per day | 2,270 | 3,337 | ||
Total BOE per day | 1,302 | 1,566 |
Operating Netback (1)
Three months ended | ||||||||
2024 | 2023 | |||||||
Per BOE | Per BOE | |||||||
Oil and natural gas sales revenue ($) | 6,101,086 | 51.49 | 7,100,558 | 50.38 | ||||
Export tax ($) | (152,016) | (1.28) | (138,196) | (0.98) | ||||
Royalties and turnover tax ($) | (1,016,422) | (8.58) | (1,108,697) | (7.87) | ||||
Operating costs ($) | (4,252,711) | (35.89) | (4,652,387) | (33.01) | ||||
Operating netback (1) ($) | 679,937 | 5.74 | 1,201,278 | 8.52 | ||||
(1) | "Operating netback" is a non-IFRS measure. "Operating netback per BOE" is a non-IFRS ratio. See "Non-IFRS and Other Financial Measures". |
About
Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in
Advisory
Non-IFRS and Other Financial Measures: Throughout this press release and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position, and cash flow. These non-IFRS and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-IFRS and other financial measures should not be considered to be more meaningful than financial measures which are determined in accordance with IFRS, such as net income (loss), oil and natural gas sales revenue and net cash (used) provided by operating activities as indicators of our performance.
"Funds flow per share “ operating activities" is a supplemental financial measure. Funds flow per share “ operating activities is comprised of funds flow provided (used) by operating activities divided by the basic and diluted weighted average number of common shares outstanding for the period. See "Summary of Financial Information".
"Net cash per share “ operating activities" is a supplemental financial measure. Net cash per share “ operating activities is comprised of net cash provided (used) by operating activities divided by the basic and diluted weighted average number of common shares outstanding for the period. See "Summary of Financial Information".
"Non-current financial liabilities" is a supplemental financial measure. Non-current financial liabilities is comprised of the non-current portions of trade and other payables, notes payable and lease liabilities as presented in the Company's consolidated statements of financial position. See "Summary of Financial Information".
"Operating Netback" is a non-IFRS measure. Operating netback is comprised of oil and natural gas sales revenue less export tax, royalties and turnover tax and operating costs. Management believes this measure is a useful supplemental measure of the Company's profitability relative to commodity prices. See "Operating Netback" for a reconciliation of operating netback to oil and natural gas sales revenue, being our nearest measure prescribed by IFRS.
"Operating netback per BOE" is a non-IFRS ratio. Operating netback per BOE is comprised of operating netback divided by total BOE sales volumes in the period. Management believes this measure is a useful supplemental measure of the Company's profitability relative to commodity prices. In addition, management believes that operating netback per BOE is a key industry performance measure of operational efficiency and provide investors with information that is also commonly presented by other crude oil and natural gas producers. Operating netback is a non-IFRS measure. See "Operating Netback" for the calculation of operating netback per BOE.
"Working capital" is a capital management measure. Working capital is comprised of current assets less current liabilities. Management believes that working capital is a useful measure to assess the Company's capital position and its ability to execute its existing exploration commitments and its share of any development programs. See "Summary of Financial Information" for a reconciliation of working capital to current assets and current liabilities, being our nearest measures prescribed by IFRS.
Abbreviations and BOE Presentation: "bbl" means barrel; "bbls" means barrels; "BOE" means barrels of oil equivalent; "mcf" means thousand cubic feet; "mmcf" means million cubic feet, "NGL" means natural gas liquids; "UTE" means Union Transitoria de Empresas, which is a registered joint venture contract established under the laws of
Forward-looking Information: This document contains forward-looking information. This information relates to future events and the Company's future performance. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information. Such information represents the Company's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. This information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this document may contain forward-looking information attributed to third party industry sources. Crown Point believes that the expectations reflected in this forward-looking information are reasonable; however, undue reliance should not be placed on this forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. This press release contains forward-looking information concerning, among other things, the following: under "Q1 2024 Summary", our expectations regarding the terms, conditions and timing for closing the proposed acquisition of the Santa Cruz Concessions; under "Operational Update", the Company's plans for future operations on its concessions and the anticipated benefits to be derived therefrom and timing thereof; under "Outlook", our estimated capital expenditure budget for fiscal 2024, and the capital expenditures that we intend to make in our concessions during such period; under "About Crown Point", all elements of the Company's business strategy and focus. The reader is cautioned that such information, although considered reasonable by the Company, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided in this document as a result of numerous known and unknown risks and uncertainties and other factors. A number of risks and other factors could cause actual results to differ materially from those expressed in the forward-looking information contained in this document including, but not limited to, the following: that the Company is unable to truck oil to the
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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