Page 19 - LatAmOil Week 22

LatAmOil NEWS IN BRIEF LatAmOil

“We were within weeks of commencing the drill- higher delivery expenses charged at the Cruz del international borders will open or when the
ing of our long awaited exploration well that you Sur terminal and trucking costs for oil sales to repair work at Cruz del Sur will be completed.
– the shareholders – and all of us who work in the Chile and overall higher per-boe operating costs For an update on operations conducted on the
Company have waited a long time for. And along due to the decrease in sales volumes; recognised SM x-1001 well during Q1-2020, see our press
the way we had already met, responded to, and $8.3mn of property and equipment impairment releases issued on April 23, 2020 and March 27,
overcome a range of adverse situations. and $1.7mn of goodwill impairment as a result 2020.
“But even in the face of a dramatic and deeply of lower forecasted commodity prices. Impair- Outlook: The Company’s capital spending for
impactful global pandemic we have remained ment related to property and equipment may be fiscal 2020 is budgeted at $900,000 in TDF based
resolute in our single-minded focus - to deliver reversed in future periods if there are indicators on expenditures for five well workovers and
the well. To this end we have rescheduled our of reversal such as an improvement in commod- other improvements to facilities in TDF. Invest-
programme, revisited our funding strategy, ity price forecasts; and reduced the 2020 capital ment in TDF has been significantly reduced and
and most recently unconditionally contracted a spending budget by an additional $0.5mn after investment in CLL has been postponed due to a
drilling rig with a window for commencement of determining that the San Martin plant expan- sharp decline in capital investment in Argentina
drilling beginning before the end of 2020, afford- sion was unnecessary. as a consequence of the impact of the COVID-
ing the Company the greatest assurance of 60 Subsequent to Q1-2020, the Company: 19 virus on both the Argentina and the global
days of continuous operations necessary to com- repaid ARS8.8mn ($130,000) of bank debt and economy.
plete the well. This chosen window demonstrates renewed the remaining ARS35.2mn ($540,000) COVID-19 and economic summary: In
our clear intent to proceed to drilling without at an interest rate of 30% per annum (reduced response to COVID-19, the Government has
unnecessary delay, being the earliest opportunity from 49% per annum), calculated and payable at closed the country’s borders to non-residents.
post the 2020 hurricane season in The Bahamas, maturity on August 12, 2020. The mandatory quarantine period was extended
and by which time we expect the worst of the Operational update, Tierra del Fuego (TDF) to June 7, 2020, for Buenos Aires and its outskirts
COVID-19 impacts to be behind us.” Concession/La Angostura Concession: Oil pro- but has been relaxed elsewhere in the country.
Bahamas Petroleum Co., June 01 2020 duction has been shut in since March 24, 2020, During this time, economic activity has slowed
due to the September 23, 2019, closure of the off- substantially and inflation rates remain high.
Crown Point announces shore loading facilities at Cruz del Sur for repairs, COVID-19 continues to have the potential
the March 23, 2020, announcement by ENAP, to further disrupt the Company’s operations,
operating and financial the Chilean state oil company, of the suspension projects and financial condition through,
of all oil deliveries at its terminal located at San among other things, the disruption of the local
results for Q1-2020 Gregorio, Magallanes Province, Chile, due to or global supply chain and transportation ser-
an outbreak of COVID-19, and the subsequent vices, or the loss of manpower resulting from
Crown Point Energy today announced its oper- closure of the Argentina-Chile border (which quarantines that affect the Company’s labour
ating and financial results for the three months remains closed). pools in local communities or operating sites
ended March 31, 2020. Copies of the Compa- The San Martin field will remain shut-in until which may require the Company to temporarily
ny’s unaudited condensed interim consolidated the Company is able to access the ENAP termi- reduce or shut down its operations depending on
financial statements and management’s discus- nal and/or maintenance and repair work by YPF their extent and severity. The current situation
sion and analysis (MD&A) filings for the three at Cruz del Sur have been completed, provided is dynamic and the ultimate duration and mag-
months ended March 31, 2020, are being filed that the resumption of operations would also nitude of the impact on the economy and the
with Canadian securities regulatory authorities depend on it being economic to do so. Due to the financial effect on the Company is not known at
and will be made available under the Company’s uncertainty and volatility created by COVID- this time.
profile at www.sedar.com and on the Compa- 19, the Company is unable to predict when Crown Point Energy, May 28 2020
ny’s website at www.crownpointenergy.com.
All dollar figures are expressed in US dollars
unless otherwise stated. References to ARS are
to Argentina Pesos.
During Q1-2020, the Company: reported net
cash used by operating activities of $0.5mn and
funds flow from operating activities of $500,000;
earned $4.3mn of oil and natural gas sales rev-
enue on average daily sales volumes of 1,714
boepd, down from $12.0mn of revenue earned
on average daily sales volumes of 3,470 boepd
in Q1-2019 due to the disposition of a 16.83%
participating interest in the Company’s Tierra
del Fuego concessions in April 2019 and delivery
restrictions at the Cruz del Sur terminal; received
an average of $43.83 per barrel for its oil and
$2.01 per mcf for natural gas compared to $54.91
per barrel of oil and $4.05 per mcf of natural gas
received in Q1-2019; reported an operating net-
back of $5.75 per boe, down from $20.76 per
boe in Q1-2019 due to the drop in both oil and
natural gas prices in Argentina combined with

Week 22 04•June•2020 www. NEWSBASE .com P19