Page 17 - LatAmOil Week 33

LatAmOil NEWS IN BRIEF LatAmOil

UPSTREAM of technical expertise and proven track record well workovers to 2021; and Obtained $700,000
building companies and creating value. (ARS50mn) of short-term working capital loans.
CruzSur Energy provides CruzSur Energy, August 19 2020 Concession: Production from the San Mar-
Tierra del Fuego Concession, La Angostura
update on re-entry PERFORMANCE tin field was shut-in on March 24, 2020, when
truck deliveries to the Enap terminal located at
activities on the Maria Crown Point announces San Gregorio, Magallanes Province, Chile, were
halted due to an outbreak of COVID-19 and the
Conchita Block closure of the Argentine-Chile border. The San
Martin field remained shut-in during the second
Further to a prior press release issued on July 24, operating and financial quarter due to ongoing repair work by YPF at
2020, CruzSur Energy is pleased to announce results for Q2-2020 Cruz del Sur and the continued closure of the
that the Company is in the final stages of its Argentina-Chile border due to the COVID-19
re-entry activities on the Aruchara well, located and H1-2020 pandemic.
in the Maria Conchita Block in the region of La The Cruz del Sur repair work was completed
Guajira in northern Colombia. More specifically, Crown Point Energy today announced its oper- in early August 2020 and it is expected that the
the repair of the well is now almost complete, ating and financial results for the three and six offshore loading facility will be operational in
and the Company will soon be in position to months ended June 30, 2020. late August 2020. The Company has scheduled
determine the quantity and quality of gas found. During Q2-2020, the Company: Reported the export and sale of approximately 27,000 bar-
A comprehensive update will be provided by the net cash used by operating activities of $0.5mn rels of oil held in stock at Cruz del Sur before the
Company at that time. and funds flow used by operating activities of end of August 2020.
CruzSur further announces that it expects to $0.1mn; Stored all Q2-2020 oil production in Due to the uncertainty and volatility created
complete the necessary social and environmen- inventory due to the continued closure of the by COVID-19, the Company is unable to predict
tal licensing procedures to enable the develop- Argentina-Chile border and on-going repair when the Argentina-Chile border will reopen.
ment of a minimum exploratory program on work at Cruz del Sur; Earned $900,000mn of nat- Prior to its shut-in, the San Martin field pro-
the SN-9 Block located in Cordoba, Colombia. ural gas sales revenue on average daily sales vol- duction for March 2020 averaged 1,600 (net 556)
SN-9 is located in the Lower Magdalena basin, a umes of 775 BOE per day, down from $13.7mn bpd of oil. Production from the field will be reac-
prolific hydrocarbon producing region near the of oil and natural gas revenue earned on average tivated in September 2020 for delivery of oil to
Caribbean coast. daily sales volumes of 3,261 boepd in Q2-2019, Cruz del Sur for storage and sale.
CruzSur holds a 72% interest in the SN-9 due to the disposition of a 16.83% participating Las Violetas Concession: Production from
Block, which is adjacent to Canacol Energy’s interest in the Company’s Tierra del Fuego con- the Las Violetas concession remained uninter-
Esperanza block. cessions in April 2019 combined with the lack rupted during the June 2020 period. No drilling
In connection with the Project, the Company of oil sales in Q2-2020; Received an average of was carried out on the concession during the
has arranged a two-year secured loan bear- $2.24 per mcf for natural gas compared to $4.19 June 2020 period. The workover for gas well
ing interest at 15% per annum in the amount per mcf for natural gas and $57.12 per bbl for LF-1029 originally scheduled in the second half
of $2.5mn with various related and unrelated oil received in Q2-2019; Reported an operating of 2020 has been deferred.
parties. netback of $(0.05) per BOE, down from $24.46 Rio Cullen Concession: Production from the
The lenders have been granted a 3% royalty per BOE in Q2-2019 due to the lack of oil sales Rio Cullen concession was shut-in on March 24,
on the Company’s 72% working interest in gross in Q2-2020 and the drop in natural gas prices 2020, due to reduced commodity prices.
production from the SN-9 Block and have an in Argentina combined with overall higher Cerro de Los Leones Exploration Permit: As
option to convert the debt into another 3% over- per BOE operating costs due to the decrease at June 30, 2020, the Company is committed to
riding royalty on such working interest. in sales volumes; Implemented procedures to drilling one exploration well on the CLL explora-
CruzSur Energy Corp. is a publicly traded reduce the variable and fixed operating costs of tion permit before February 23, 2021 under the
E&P company focused on proven oil and gas producing properties in the TDF Concessions Period 3 one-year term of the permit.
plays in Latin America. The Company holds a which measures are expected to lead to reduced Outlook: The Company’s capital spending for
large diversified portfolio of producing, devel- costs per BOE commencing in Q3 2020; Further fiscal 2020 is budgeted at $700,000 in TDF based
opment and unexploited assets in Colombia and reduced the 2020 capital spending budget by on expenditures for the following proposed
Argentina, where it will leverage its amplitude an additional $200,000 for the deferral of four activities: Perform a workover on the SM x-1001
well in the La Angostura concession; and Other
improvements to facilities in TDF.
During the June 2020 period, the Company
incurred $500,000 of capital expenditures in
TDF on facilities improvements and a worko-
ver on SM x-1001 which restored its water-free
productivity.
Four well workovers have been deferred to
2021. Investment in TDF has been significantly
reduced and investment in CLL has been post-
poned due to a sharp decline in capital invest-
ment in Argentina as a consequence of the
impact of the COVID-19 virus on both Argen-
tina and the global economy.

Week 33 19•August•2020 www. NEWSBASE .com P17