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Crown Point sees gas and oil flowing at Tierra del Fuego well onshore Argentina

10th December 2014

Crown Point Energy has announced test results for the first of two exploration wells at its 25.78 per cent-owned Tierra del Fuego (TDF) concessions in Argentina; results for the second well are expected by the end of December

Crown Point sees gas and oil flowing at Tierra del Fuego well onshore Argentina
During a four- hour production test SL x-1003 flowed gas from the Springhill sand formation at an average gross rate of 5.6 million cubic feet (mmcf) of gas per day and flowed liquids at an average gross rate of 88 barrels of oil per day

"The test of our first exploration well was very encouraging and further confirms that we are on track to build our TDF oil and gas output," said Murray McCartney, CEO of Crown Point.

"If we get timely government approval for a gas line from the well to our nearby San Luis Gas Plant, we should have this well on production by the end of January."

The exploration well SL x-1003, was completed on December 4, 2014.

During a four- hour production test SL x-1003 flowed gas from the Springhill sand formation at an average gross rate of 5.6 million cubic feet (mmcf) of gas per day and flowed liquids at an average gross rate of 88 barrels of oil per day.

Total gross production during the four-hour test was 0.936 mmcf of gas and 14.7 barrels of liquids comprised of 100 per cent oil at an average wellhead flowing pressure of 1,010 pounds per square inch through a 14 millimetre choke.

The well was drilled to a depth of 2,207 metres and cased on November 11, 2014 as a potential Springhill gas well with approximately 24.5 metres of gross pay.

It is located approximately 2.6 kilometres from the company's San Luis Gas Plant and was drilled to evaluate the potential of the Springhill sandstones on a separate fault block adjacent to the San Luis Springhill gas pool.

Necessary government approvals to lay a gas line from the wellhead to the San Luis gas plant have been requested. Fieldwork and tie-in operations will commence as soon as approvals are issued. Additional drilling to further exploit this new pool discovery may be carried out during the first quarter of 2015, and if successful would also be tied into the San Luis Gas Plant

Crown Point cautions that test results are not necessarily indicative of long-term performance of the well or of ultimate recovery of hydrocarbons.

PQ x-1001, the second exploration well, has been drilled to a total depth of 1,939 metres and was cased on December 8, 2014 as a potential new pool discovery with approximately 14 metres of gross pay in the Springhill sandstones formation.

PQ x-1001 was drilled to evaluate the Springhill formation over the 50-square kilometre 3-D seismic mapped Puesto Quince structure. Completion and testing of the Puesto Quince well is scheduled for later this month.

A successful completion of the well would generate additional drilling locations for 2015. The well is located some 5-kilometres from company owned gas and oil processing facilities at Rio Chico.

As previously disclosed, Crown Point is undertaking a 14-well exploration, development and recompletion program at its TDF concessions. Crown Point has already disclosed the results of several developments and recompletion wells and expects to finish the 14-well programme during the first quarter of 2015.  The rig will now return to Los Flamencos to drill on the eastern extension of the gas pool as part of the 14-well programme.

 

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