Crown Point loses Tierra del Fuego concessions after expiry
The TDF concessions accounted for less than 5% of revenue and 4% of proved-plus-probable reserves. Crown Point expects trailing net liabilities from the closure to be immaterial.
Crown Point Energy's hydrocarbon exploitation concessions in three areas of Argentina's Tierra del Fuego province expired on Aug. 18, the company said Thursday, ending a long-running contributor that had become a net drag on the balance sheet.
The concessions, Río Cullen, Las Violetas and La Angostura, had high fixed operating costs, declining production, and no identified low-risk drilling targets. Crown Point's wholly owned Argentine subsidiary held a 48.3275% non-operating participating interest in the joint venture that ran them.
Revenue from the TDF Concessions represented less than 5% of total company revenue in the six months through June 30. The gross proved-plus-probable reserves assigned to them in Crown Point's year-end 2025 evaluation by Sproule International were less than 4% of total 2P reserves, and their net present value (before tax, discounted at 10%) was less than 3% of the total 2P NPV across all properties.
CPESA and the other joint-venture members signed an agreement with the province for final settlement, closure and reversion of the concessions. CPESA will cover its share of trailing liabilities including severance and abandonment costs, offset by remaining assets such as accounts receivable, materials and crude oil inventories. The company said its net trailing liabilities from the concessions are not expected to be material.
The TDF Concessions had become less central to Crown Point as it acquired operated oil and gas assets in the Golfo San Jorge basin across the provinces of Santa Cruz and Chubut over the past several years. Those acquisitions shifted the company's production base and reduced the relative importance of the Tierra del Fuego assets.
Crown Point is a Calgary-headquartered international oil and gas company incorporated in Canada and trading on the TSX Venture Exchange under the ticker CWV. Its operations are concentrated in three producing basins in Argentina: Golfo San Jorge, Neuquén and Cuyo.
The company said its estimate of trailing liabilities remains subject to risks including unforeseen costs, and it does not undertake to update any forward-looking statements except as required by securities law.
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