Page 15 - LatAmOil Week 17 2020

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NEWS IN BRIEF
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It should be noted that the company continues to pursue the reduction of gross debt to $60bn. This amount is in line with the new dividend policy already announced, which provides for an increase in compensation to shareholders when gross debt reaches this level or lower.
The Board also approved the of the EVA® (Economic Value Added) calculation for 2020, in order to maintain the right incentive and stim- ulate the targeting of goals after the COVID-19 crisis, which resulted in a more challenging sce- nario for value creation. The also considered the achievements of the year 2019. Thus, the consol- idated Delta EVA® target indicator was revised from $2.6bn to $2.1bn.
The safety metric was unchanged, with the target rate of recordable accidents per million man-hours (TAR) remaining below 1.0, with an ambition of zero fatality.
Petrobras reinforces its commitment to its portfolio management and its strategy sup- ported by the five pillars: maximising return on capital, reducing the cost of capital, relentless search for low costs, meritocracy and respect for people, the environment and safety. The current crisis highlights the relevance of these pillars that must continue to be implemented with even more focus and intensity.
Petrobras, April 28 2020
Crown Point announces
operating and financial
results for Q4-2019
Crown Point Energy today announced its oper- ating and financial results for the three months and year ended December 31, 2019.
During Q4-2019, the Company: reported cash flows used by operating activities of $250,000; earned $5.8mn of oil and natural gas revenue on average daily sales volumes of 1,891 barrels of oil equivalent per day, down from $19.4mn earned on average daily sales vol- umes of 4,915 barrels of oil equivalent per day in Q4-2018 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 $54.62 per barrel for its oil and $2.00 per mcf for natural gas compared to $55.59 per barrel of oil and $3.90 per mcf of natural gas received in Q4-2018; reported an operating net- back of $9.60 per BOE, down from $20.90 per barrel of oil equivalent in Q4 2018 due to the drop in natural gas prices in Argentina combined with higher delivery expenses charged at the Cruz del Sur terminal and trucking costs for increased oil sales to Chile; approved and paid a return of capital distribution to its common shareholders in the amount of $0.185 per common share for
a total cash payment of approximately $13.5mn. Subsequent to Q4-2019, the Company: per- formed a successful workover on SM x-1001, re-establishing water free production; completed the Cerro de Los Leones Period 2 work obliga- tions and elected to commit to the Period 3 work obligation of drilling one exploration well on the permit before February 23, 2021; obtained an ARS 44mn ($750,000) working capital loan from HSBC Bank Argentina S.A. at an interest rate of 49% per annum, calculated and payable monthly. The loan matured on April 10, 2020, and was renewed for an additional 90 days to July
10, 2020.
Subsequent to December 31, 2019, crude oil
benchmark prices decreased substantially due to a drop in global crude oil demand triggered by the impact of the COVID-19 virus on the global economy. In March 2020, crude oil prices decreased further due to a breakdown in negoti- ations between OPEC and non-OPEC partners regarding proposed production cuts. A subse- quent tentative agreement between these coun- tries has failed to have a positive impact on crude oil benchmark prices. The recent significant decline in oil prices and volatility in the crude oil pricing environment may continue and could impact the Company’s earnings and cash flows.
The Company’s capital expenditure budget for fiscal 2020 is $1.4mn, which reflects man- agement’s estimate of the minimum amount
of capital expenditures necessary to keep the TDF concessions operating smoothly given the uncertainty of severely depressed commod- ity prices, commodity price volatility and the impact the COVID-19 virus will have both on the Argentine and global economies.
The $1.4mn capital expenditure budget is for the following proposed activities in TDF: perform five well workovers (two in the Los Flamencos field and one in the San Luis field of the Las Violetas concession, one in the La Angostura concession and one in the Rio Chico concession); improve water handling facilities at San Martin to increase production capacity; and other improvements to facilities in TDF.
Crown Point Energy Inc. is an international oil and gas exploration and development com- pany headquartered in Calgary, Canada, incor- porated in Canada, trading on the TSX Venture Exchange and operating in South America. Crown Point’s exploration and development activities are focused in two of the largest pro- ducing basins in Argentina, the Austral basin in the province of Tierra del Fuego and the Neu- quén basin, in the province of Mendoza. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus produc- tion enhancement and exploration opportuni- ties to provide a basis for future growth.
Crown Point Energy, April 23 2020
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