Crown Point Ventures has achieved a number of its major short term goals regarding the development and implementation of its Argentine Business Plan during the first quarter.

Crown Point in the first quarter completed the drilling and completion of its first oil wells in Argentina and has placed them on commercial production. The above listed accomplishments have provided confidence to Crown Point regarding the potential gains to be made from further development at El Valle. The recent drilling and production results have started to demonstrate the economic potential of El Valle.

Crown Point has two producing oil wells (EVX-21 and EVX-19) and a currently shut in natural gas well (EVX-20) in the El Valle Field in Golfo San Jorge Basin in Argentina. The Company has developed a drilling inventory of eight new exploration targets and is expanding its inventory of development drilling locations. Crown Point is currently reviewing the El Valle 3-D seismic program giving consideration in the interpretation of its' recent drilling results. The Company is anticipating that this re-interpretation will generate additional drilling locations. Currently, the Company has identified 8 drill ready development locations in addition to the exploration locations. The next drilling program is expected to expand the Companies drilling inventory.

Crown Point plans to commence a six well drilling program consisting of three wells in commencing in late March and another three or more wells commencing three months later. The drilling program is designed to follow-up, define, and commence the exploitation the hydro-carbon pools discovered by the 2009 drilling program.

New Drilling Program An agreement has been reached with our 50% Argentine partners to ensure that Crown Point's capital plans can be carried out. This agreement provides Crown Point with the ability to propose and execute new drilling operations.

Under the agreement, Crown Point will pay for 100% of the capital costs of the wells and shall have an 80% interest in production until Crown Point has recovered 300% (in the case of development wells) and 500% (in the case of exploration wells). Once the production penalty has paid out the ownership will revert to 50/50. The structure by North American standards is unusual, it however has very similar economic features as a farmout and it does provide Crown Point with a satisfactory return to risk. Our Partners have the option to participate in any of the proposed programs as to their 50% interest.

The first of the new wells to be drilled has two primary geological objectives; the first is to commence the delineation of the new Mina El Carmen Pool discovered by the EVX-21 well. This is an important discovery as it is the first commercial Mina El Carmen light oil discovery in the vicinity of El Valle. EVX-21 upon completion flowed 30 degree oil from the Mina el Carmen formation.

Tags: Crown Point Ventures Ltd