CALGARY, Alberta, April 15, 2024 (GLOBE NEWSWIRE) — TSX-V: CWV: Crown Level Power Inc. (“Crown Level”, the “Firm”, “we” or “our“) is happy to supply an replace on the standing of its proposed acquisition of a 100% working curiosity within the Piedra Clavada and Koluel Kaike hydrocarbon exploitation concessions positioned within the San Jorge Basin, Santa Cruz Province, Argentina (the “Concessions“), the small print of which have been disclosed by press launch on February 9, 2024.
Completion of the acquisition stays topic to the receipt of all essential regulatory and Provincial approvals, together with the approval of the TSX Enterprise Change (the “TSXV“), and the satisfaction of different customary closing situations. The acquisition is presently anticipated to shut in Could 2024. The Firm is presently within the means of acquiring the approval of the Province of Santa Cruz and arranging the mandatory financing to fund the money portion of the acquisition worth.
The Firm’s widespread shares have been halted by the TSXV till the Firm has supplied the TSXV with relevant documentation, together with a reserve report in respect of the Concessions that’s ready by an impartial third celebration and complies with Nationwide Instrument 51-101 (“NI 51-101“). The reserves report is now full and sure reserve data for the Concessions is about forth beneath. Consequently, the Firm has been suggested by the TSXV that the halt will probably be lifted and the Firm’s widespread shares will start buying and selling on the opening of buying and selling on Thursday, April 18, 2024.
RPS Group, Inc (“RPS”), an impartial certified reserves evaluator, evaluated the crude oil reserves attributable to the Concessions as at December 31, 2023 primarily based on forecast costs and prices and ready its report in accordance with NI 51-101 and the Canadian Oil and Fuel Analysis Handbook (the “COGE Handbook“). RPS’ analysis report (titled “Hydrocarbon Liquids & Pure Fuel Reserves Analysis Report at 12 months Finish 2023 – Piedra Clavada & Koluel Kaike – Argentina) (the “RPS Report“) additionally presents the estimated web current worth of future web income related to the Concessions’ reserves. A abstract of the Concessions’ crude oil reserves, as evaluated by RPS, and the related web current worth of future web income earlier than and after tax related therewith as at December 31, 2023 is offered beneath. The estimates of reserves and future web income contained within the RPS Report have been made assuming that improvement of the Concessions will happen, with out regard to the possible availability to Crown Level of funding required for that improvement. All greenback figures are expressed in United States {dollars} (“USD” or “US$“) except in any other case acknowledged, and “MMUS$” means tens of millions of USD.
The next desk presents, within the mixture, the Concessions’ gross and web proved and possible reserves, estimated utilizing forecast costs and prices, by product sort and in complete, as of December 31, 2023.
SUMMARY OF RESERVES AS OF DECEMBER 31, 2023 (Forecast Costs & Prices) |
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Mild and Medium Crude Oil | Heavy Crude Oil | Whole Reserves | ||||
(Mbbl) | (Mbbl) | (Mbbl) | ||||
Reserves Class (1) | Gross | Internet | Gross | Internet | Gross | Internet |
Proved: | ||||||
Developed Producing | 4,507 | 3,809 | 11,356 | 9,591 | 15,863 | 13,400 |
Developed Non-Producing | 3,543 | 2,987 | 2,781 | 2,346 | 6,324 | 5,333 |
Undeveloped | 4,865 | 4,105 | 2,689 | 2,270 | 7,554 | 6,375 |
Whole Proved | 12,914 | 10,901 | 16,826 | 14,207 | 29,740 | 25,108 |
Whole Possible | 8,957 | 7,545 | 9,169 | 7,724 | 18,126 | 15,269 |
Whole Proved plus Possible | 21,871 | 18,446 | 25,996 | 21,931 | 47,866 | 40,377 |
(1) The definitions of the varied classes of reserves are these set out in NI 51-101 and the COGE Handbook.
The next tables disclose, within the mixture, the web current worth of the Concessions’ future web income attributable to the reserves classes within the desk above, estimated utilizing forecast costs and prices, earlier than and after deducting future revenue tax bills, and calculated with out low cost and utilizing low cost charges of 5%, 10%, 15% and 20%.
SUMMARY OF NET PRESENT VALUE OF FUTURE NET REVENUE AS OF DECEMBER 31, 2023 (Forecast Costs & Prices) |
||||||||||
Internet Current Values of Future Internet Income Earlier than Revenue Taxes (2) | ||||||||||
Discounted at (%/yr) | ||||||||||
Reserves Class (3) | 0% | 5% | 10% | 15% | 20% | |||||
MMUS$ | MMUS$ | MMUS$ | MMUS$ | MMUS$ | ||||||
Proved: | ||||||||||
Developed Producing | 126.42 | 105.03 | 85.64 | 70.93 | 60.10 | |||||
Developed Non-Producing | 78.65 | 33.61 | 12.81 | 2.59 | -2.67 | |||||
Undeveloped | 157.16 | 71.94 | 30.12 | 8.29 | -3.61 | |||||
Whole Proved | 362.23 | 210.58 | 128.57 | 81.82 | 53.82 | |||||
Whole Possible | 367.55 | 141.73 | 51.78 | 15.11 | 0.26 | |||||
Whole Proved + Possible | 729.78 | 352.31 | 180.35 | 96.93 | 54.08 | |||||
- The estimated web current values of future web revenues disclosed don’t symbolize honest market worth.
- The definitions of the varied classes of reserves are these set out in NI 51-101 and the COGE Handbook.
SUMMARY OF NET PRESENT VALUE OF FUTURE NET REVENUE AS OF DECEMBER 31, 2023 (Forecast Costs & Prices) |
||||||||||
Internet Current Values of Future Internet Income After Revenue Taxes (4) | ||||||||||
Discounted at (%/yr) | ||||||||||
Reserves Class (5) | 0% | 5% | 10% | 15% | 20% | |||||
MMUS$ | MMUS$ | MMUS$ | MMUS$ | MMUS$ | ||||||
Proved: | ||||||||||
Developed Producing | 88.35 | 68.08 | 53.42 | 43.26 | 36.13 | |||||
Developed Non-Producing | 53.58 | 19.33 | 4.15 | -2.90 | -6.26 | |||||
Undeveloped | 105.09 | 39.06 | 7.42 | -8.48 | -16.65 | |||||
Whole Proved | 247.02 | 126.47 | 64.98 | 31.88 | 13.22 | |||||
Whole Possible | 238.91 | 72.26 | 11.66 | -9.39 | -15.40 | |||||
Whole Proved + Possible | 485.93 | 198.72 | 76.64 | 22.49 | -2.18 |
- The estimated web current values of future web revenues disclosed don’t symbolize honest market worth.
- The definitions of the varied classes of reserves are these set out in NI 51-101 and the COGE Handbook.
The next desk units forth, for every product sort, the pricing assumptions and the inflation price assumptions utilized by RPS in estimating the reserves information disclosed herein as at December 31, 2023.
SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS AS OF DECEMBER 31, 2023 (Forecast Costs & Prices) |
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12 months | Brent Crude Oil Value (1) US$/bbl |
Escalante Crude Oil Value (2) US$/bbl |
Piedra Clavada Gross sales Oil Value (3) US$/bbl |
Koluel Kaike Gross sales Oil Value (3) US$/bbl |
Inflation Fee(4) % / 12 months |
2024 | 78.00 | 66.35 | 64.20 | 65.30 | 0 |
2025 | 78.00 | 66.35 | 64.20 | 65.30 | 2 |
2026 | 76.00 | 64.35 | 62.25 | 63.31 | 2 |
2027 | 75.00 | 63.35 | 61.27 | 62.32 | 2 |
2028 | 75.00 | 63.35 | 61.27 | 62.32 | 2 |
2029 | 75.00 | 63.35 | 61.27 | 62.32 | 2 |
2030 | 77.00 | 65.35 | 63.22 | 64.31 | 2 |
2031 | 79.00 | 67.35 | 65.18 | 66.29 | 2 |
2032 | 81.00 | 69.35 | 67.13 | 68.28 | 2 |
2033 | 84.48 | 72.83 | 70.53 | 71.73 | 2 |
2034 | 86.17 | 74.52 | 72.18 | 73.41 | 2 |
2035 | 87.89 | 76.24 | 73.86 | 75.12 | 2 |
2036 | 89.65 | 78.00 | 75.58 | 76.86 | 2 |
2037 | 91.44 | 79.79 | 77.33 | 78.64 | 2 |
2038 2039 |
93.27 95.13 |
81.62 83.48 |
79.11 80.94 |
80.46 82.31 |
2 2 |
- Forecast pricing for Brent crude oil – RPS worth deck reference date as of January 1, 2024.
- Escalante crude oil is 24 diploma API candy crude oil attribute of the oil produced from the San Jorge Basin. Escalante crude oil worth estimated as Brent forecast oil worth minus $11.65 US$/bbl reflecting the precise 2023 low cost to Brent.
- Gross sales worth together with API gravity correction, bouy, storage, transport and turnover tax deductions.
- Inflation Fee: RPS desk state of affairs used to forecast value changes.
For inquiries please contact:
Gabriel Obrador President & CEO Ph: (403) 232-1150 Crown Level Power Inc. [email protected] |
Marisa Tormakh Vice-President, Finance & CFO Ph: (403) 232-1150 Crown Level Power Inc. [email protected] |
About Crown Level
Crown Level Power Inc. is a world oil and fuel exploration and improvement firm headquartered in Calgary, Canada, integrated in Canada, buying and selling on the TSX Enterprise Change and working in Argentina. Crown Level’s exploration and improvement actions are targeted in three producing basins in Argentina, the Austral basin within the province of Tierra del Fuego, and the Neuquén and Cuyo basins within the province of Mendoza. Crown Level has a technique that focuses on establishing a portfolio of manufacturing properties, plus manufacturing enhancement and exploration alternatives to supply a foundation for future development.
Oil and Fuel Advisories
“bbl” means barrel. “Mbbl” means 1000’s of barrels.
The reserves estimates contained on this information launch symbolize the gross and web reserves attributable to the Concessions as at December 31, 2023. Gross reserves are outlined beneath NI 51-101 because the working curiosity (working or non-operating) share earlier than deduction of royalties and with out together with any of the royalty pursuits. Internet reserves are outlined beneath NI 51-101 because the working curiosity (working or non-operating) share after deduction of royalty obligations, plus the royalty pursuits in reserves. It shouldn’t be assumed that the current value of estimated future web revenues offered within the tables above represents the honest market worth of the reserves. There isn’t a assurance that the forecast worth and price assumptions will probably be attained and variances might be materials. The restoration and reserves estimates of the crude oil reserves supplied herein are estimates solely and there’s no assure that the estimated reserves will probably be recovered. Precise crude oil reserves could also be higher than or lower than the estimates supplied herein.
All future web revenues are estimated utilizing forecast costs arising from the anticipated improvement and manufacturing of the reserves, web of the related royalties, working prices, improvement prices, and abandonment and reclamation prices and are acknowledged previous to provision for curiosity and basic and administrative bills. Future web revenues have been offered on a earlier than and after tax foundation.
The estimates of reserves and future web income for particular person properties might not replicate the identical confidence degree as estimates of reserves and future web income for all properties, as a result of results of aggregation.
Ahead Wanting Statements
Sure data set forth on this doc is taken into account forward-looking data, and essentially entails dangers and uncertainties, sure of that are past Crown Level’s management. Ahead-looking data herein consists of: our expectations relating to the phrases, situations and timing for closing the proposed acquisition of the Concessions; and the forecast pricing and inflation price assumptions set forth herein. As well as, data referring to the reserves attributable to the Concessions is deemed to be forward-looking data, because it entails the implied evaluation, primarily based on sure estimates and assumptions, that the reserves described will be economically produced sooner or later. Such dangers embrace however aren’t restricted to: that the Firm is unable to finish the proposed acquisition of the Concessions on the phrases described herein or in any respect, whether or not as a result of lack of ability of the Firm to acquire financing to fund the money portion of the acquisition worth, receive requisite regulatory or governmental approvals, fulfill relevant situations precedent, or in any other case; the dangers that pandemics and outbreaks of communicable illness akin to COVID-19 pose to the oil and fuel trade usually and our enterprise specifically; dangers related to oil and fuel exploration, improvement, exploitation, manufacturing, advertising and transportation, together with the chance that the infrastructure on which we rely to supply, transport and promote our merchandise breaks down and requires elements that aren’t available or repairs that can’t be made on a well timed foundation, and which impair our means to function and/or promote our merchandise; dangers related to working in Argentina, together with dangers of fixing authorities laws (together with the adoption of, amendments to, or the cancellation of presidency incentive applications or different legal guidelines and laws referring to commodity costs, taxation, foreign money controls and export restrictions, in every case that will adversely influence Crown Level), dangers that new authorities initiatives won’t have the implications the Firm believes (together with the advantages to be derived therefrom), expropriation/nationalization of belongings, worth controls on commodity costs, lack of ability to implement contracts in sure circumstances, the potential for a hyperinflationary financial atmosphere, the imposition of foreign money controls, dangers related to a default on Argentine authorities debt, and different financial and political dangers; volatility of commodity costs; foreign money fluctuations; imprecision of reserve estimates; environmental dangers; competitors from different producers; lack of ability to retain drilling providers; incorrect evaluation of worth of acquisitions and failure to understand the advantages therefrom; delays ensuing from or lack of ability to acquire required regulatory approvals; the shortage of availability of certified personnel or administration; inventory market volatility; lack of ability to entry adequate capital from inside and exterior sources; the necessity to shut-in, flare and/or curtail manufacturing because of a scarcity of infrastructure and/or injury to present infrastructure; and financial or trade situation adjustments. Precise outcomes, efficiency or achievements may differ materially from these expressed in, or implied by, the forward-looking data and, accordingly, no assurance will be provided that any occasions anticipated by the forward-looking data will transpire or happen, or if any of them accomplish that, what advantages that Crown Level will derive therefrom. With respect to forward-looking data contained herein, the Firm has made assumptions relating to: that the Firm will full the proposed acquisition of the Concessions on the phrases described herein on a well timed foundation, together with the flexibility of the Firm to acquire the requisite financing to fund the money portion of the acquisition worth on acceptable phrases, receive all requisite regulatory and governmental approvals and fulfill all relevant situations precedent; the influence of accelerating competitors; the overall stability of the financial and political atmosphere in Argentina; the well timed receipt of any required regulatory approvals; the flexibility of the Firm to acquire certified workers, gear and providers in a well timed and price environment friendly method; drilling outcomes; the prices of acquiring gear and personnel to finish the Firm’s capital expenditure program; the flexibility of the operator of the initiatives which the Firm has an curiosity in to function the sphere in a secure, environment friendly and efficient method; the flexibility of the Firm to acquire financing on acceptable phrases when and if wanted; the flexibility of the Firm to service its debt repayments when required; subject manufacturing charges and decline charges; the flexibility to interchange and broaden oil and pure fuel reserves by means of acquisition, improvement and exploration actions; the timing and prices of pipeline, storage, transportation and facility restore, development and growth and the flexibility of the Firm to safe enough product transportation; future oil and pure fuel costs; prices of operational actions in Argentina; foreign money, trade, inflation and rates of interest; the regulatory framework relating to royalties, commodity worth controls, foreign money controls, import/export issues, taxes and environmental issues in Argentina; and the flexibility of the Firm to efficiently market its oil and pure fuel merchandise. Extra data on these and different elements that would have an effect on Crown Level are included in stories on file with Canadian securities regulatory authorities, together with beneath the heading “Danger Components” within the Firm’s most up-to-date annual data kind, and could also be accessed by means of the SEDAR+ web site (www.sedarplus.ca). Moreover, the forward-looking data contained on this doc are made as of the date of this doc, and Crown Level doesn’t undertake any obligation to replace publicly or to revise any of the included ahead trying data, whether or not because of new data, future occasions or in any other case, besides as could also be expressly required by relevant securities regulation.
Neither TSX Enterprise Change nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts duty for the adequacy or accuracy of this information launch.
The put up Crown Level Offers Replace on Strategic Acquisition of Piedra Clavada & Koluel Kaike Exploitation Concessions in Santa Cruz and Discloses Reserves Data appeared first on Make investments.