Crown Point Ventures Ltd.
TSX VENTURE : CWV

Crown Point Ventures Ltd.

October 05, 2009 17:35 ET

Crown Point Ventures Ltd. Completes Its Second Oil Well in Argentina and Provides a Production Update on Its First Oil Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) - Crown Point Ventures Ltd. (the "Company") (TSX VENTURE:CWV) advises that it has successfully completed its second well as a dual zone oil and gas well. The EVx-21 well was drilled as part of a three well program in the El Valle field, in the Golfo San Jorge Basin in Argentina.

Completion Update EVx-21

The Company has completed two zones in the EVx-21 well; the first zone is a three meter thick sandstone in the Mina el Carmen formation, which upon completion and fracture stimulation flowed medium grade oil at a tested rate of 270 bbls. of oil per day. Operations then moved uphole to evaluate and test a three meter interval in the Caleta Olivia B. The Caleta Olivia B zone upon completion flowed natural gas with traces of oil and decreasing amounts of water during clean up evaluation. The Company anticipates that this well will be placed on commercial production later this week.

"This is the second well in a row which freely flowed oil upon completion," said Murray D. McCartney, President and CEO. "These wells are significant to Crown Points' future plans as each of them provides numerous follow-up locations for future drilling." EVx-21 will in the near term be placed on production joining Crown Points first producing well in Argentina, EVx-19.

Production Update – EVx-19

The EVx-19 well is producing at restricted rate of approximately 140 barrels of oil per day and carrying a high fluid level. Production is currently restricted due to the configuration of surface and bottom hole equipment. The Company chose to utilize a bottom hole pump and relatively small pump jack that were in El Valles' equipment inventory with the knowledge that they would limit the rate of fluid withdrawal. Managements purpose was to quickly and cost effectively, obtain the data necessary to determine the best long term configuration of surface and bottom hole equipment for this well, EVx-21 and EVx-20.

When the new pumping equipment is installed, management anticipates that the well should deliver a higher production rate. The EVx-19 well and the EVx-21 have additional zones of potential pay which have been identified by logs and drilling samples remaining behind pipe for future re-completion operations.

Completion Plans – EVx-20

Once operations have been concluded on the EVx-21 well, completion operations shall be commenced on the EVx-20 well. Among the numerous potential hydro-carbon bearing zones of interest in this well are five zones which Crown Point intends to evaluate during completion operations. We are planning to evaluate three different zones in the Mina el Carmen, this is the formation which flowed medium grade oil in the EVx-21 well, and two zones in the Canadon Seco formation which flowed oil in the EVx-19 well.

Future Plans

Crown Point plans to drill an initial development program consisting of an additional six to ten wells in the El Valle field. In addition to these locations, Crown Points' 3-D seismic program covering the 15,800 acre El Valle block has identified a further 8 exploration drilling prospects. The Company is also planning a re-completion and work over program of some of the existing vertical wells in the field. Government environmental approvals of development plans must be obtained prior to commencing the new drilling program. The Companies capital and production interest in these programs will be 50%.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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