Crown Point Announces Operating and Financial Results for the Three and Six Months Ended June 30, 2025 and Appointment of New Director

Executive Summary

• Crown Point Energy Inc. reported financial and operating results for the three and six months ended June 30, 2025, highlighting a significant increase in revenue and production volumes driven by the acquisition of the Santa Cruz Concessions.
• The company reported a net loss of $5.7 million for Q2 2025 (compared to $3.1 million in Q2 2024) and an operating netback of $(7.50) per BOE, a decline from $(4.22) per BOE in the prior year period.
• Subsequent to quarter-end, the company issued $25 million in unsecured fixed-rate Series VII Notes and repaid various working capital loans and notes payable.

Key Details

• Financial Performance (Q2 2025):
  • Net cash provided by operating activities: $5.6 million (vs. $1.5 million in Q2 2024).
  • Funds flow used in operating activities: $5.0 million (vs. $1.4 million in Q2 2024).
  • Oil and natural gas sales revenue: $22.2 million (vs. $5.6 million in Q2 2024).
  • Net loss: $5.7 million (vs. $3.1 million in Q2 2024).
  • Loss before taxes: $9.1 million; Tax recovery: $3.4 million.
  • Working capital deficit: $50.7 million; Current liabilities: $74.5 million.
• Production and Pricing:
  • Total average daily sales volumes: 4,083 BOE per day (vs. 1,340 BOE per day in Q2 2024).
  • Oil sales price: $67.26 per bbl (vs. $65.50 per bbl in Q2 2024).
  • Natural gas sales price: $3.45 per mcf (vs. $3.71 per mcf in Q2 2024).
  • Operating netback: $(7.50) per BOE (vs. $(4.22) per BOE in Q2 2024).
• Subsequent Events (Post-June 30, 2025):
  • Repaid $5.62 million of working capital and overdraft loans.
  • Repaid $3.4 million principal amount of Series IV Notes and $2.1 million principal amount of Series III Notes.
  • Issued $25 million principal amount of unsecured fixed-rate Series VII Notes (denominated in USD, payable in ARS), accruing interest at 13% per annum, payable semi-annually, with maturities on January 11, 2027, and July 11, 2027.
• Chubut Acquisition Update:
  • Entered into agreements to acquire 95% operated interest in El Tordillo, La Tapera, and Puesto Quiroga concessions from Tecpetrol, YPF, and Pampa Energía.
  • Aggregate base purchase price: ~$57.9 million cash, plus up to $3.5 million contingent consideration.
  • Deposits paid: $643,998 (Pampa), $8.06 million (Tecpetrol), and $1.3 million (YPF).
  • Expected closing: Third quarter of 2025, subject to regulatory and TSX Venture Exchange approvals.
• Operational Updates (Q2 2025):
  • Santa Cruz: Piedra Clavada avg. 1,902 bbls oil/day; Koluel Kaike avg. 1,060 bbls oil/day. 12 workovers performed.
  • Tierra del Fuego: San Martin avg. 398 bbls oil/day (net 192); Las Violetas avg. 8,028 mcf gas/day (net 3,880) and 198 bbls oil/day (net 96).
  • Mendoza: Chanares Herrados avg. 766 bbls oil/day (net 383); Puesto Pozo Cercado Oriental avg. 170 bbls oil/day (net 85). 5 workovers performed in CH Concession.
• Outlook/Capital Spending:
  • Fiscal 2025 budget: ~$12.3 million.
  • Allocation: $10.4 million to Santa Cruz (workovers, facilities, 2 wells); $1.1 million to Mendoza; $0.8 million for testing at Cerro de Los Leones.
  • YTD Capital Expenditures (June 2025): $3.3 million in Santa Cruz; $0.9 million in Mendoza.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.