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Crown Point Announces Financial and Operating Results for the Three and Six Months Ended June 30, 2015

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CALGARY, ALBERTA--(Marketwired - Aug. 31, 2015) - Crown Point Energy Inc. (TSX VENTURE:CWV) ("Crown Point" or the "Company") today announced its operating and financial results for the three and six months ended June 30, 2015.

During the first half of 2015 Crown Point completed the drilling of a 2014/2015 fourteen well development, recompletion and exploration drilling program, the drilling of a three well follow up drilling program and a 210 km2 3-D seismic program at Tierra del Fuego. Completion and tie in operations are expected to be finished in the third quarter. The Company is focused on the successful execution of our exploration and development program which we expect to deliver further gains in production. Natural gas production gains are being made with the background of improving domestic Argentine natural gas prices, and Argentina has stronger domestic oil prices than is being experienced in international markets. The Company expects that the improving natural gas price trend will continue due to an insufficient domestic supply of natural gas in Argentina.

Copies of the Company's unaudited condensed interim consolidated financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2015 are being filed with Canadian securities regulatory authorities and will be made available under the Company's profile at www.sedar.com and on the Company's website at www.crownpointenergy.com. All dollar figures are expressed in United States dollars unless otherwise stated, and M$ means thousands of U.S. dollars.

During and subsequent to the three month period ended June 30, 2015 ("Q2 2015"), the Company:



-- High Oil Prices - Realized Q2 2015 commodity prices in Argentina of
$69.68/bbl of crude oil and $3.73/Mcf of natural gas. The benchmark for
crude oil is set by the Government of Argentina and has averaged US
$76.33/bbl in Q2 2015. The Company's crude oil sells at a discount to
the benchmark price. The benchmark price for Q3 2015 has been set at
$76/bbl.

-- Rising Natural Gas Prices - With its 83% weighting towards natural gas
continues to benefit from rising Argentine domestic natural gas prices
which are reflective of the chronic undersupply conditions. Crown
Point's industrial market natural gas price for May and June 2015 was
$5.13/Mcf compared with $4.86/Mcf for the same months in 2014.

-- Strategic Financing - Completed the second tranche of a $15.0 million
strategic financing where two strategic investors subscribed for and
purchased 34,034,296 common shares of the Company for gross proceeds of
$8.5 million at $0.25 per share.

-- Increasing Oil and Gas Revenues - Reported $3.9 million of oil and gas
revenue from continuing operations for Q2 2015, a 19% increase compared
with the three months ended June 30, 2014 ("Q2 2014"). Revenue per
barrel of oil equivalent ("BOE") in Q2 2015 was $29.61, an 11% increase
compared with Q2 2014.

-- Rising Oil and Gas Sales Volumes - Reported Q2 2015 Tierra del Fuego
("TDF") average daily sales volumes of 1,442 BOE per day, a 7.4%
increase from the average daily sales volumes in Q2 2014. During Q2 2015
production from new wells was offset by restricted production from some
existing wells due to gathering system constraints and unscheduled
compressor repair and maintenance activities.

-- Loss - Reported a $1.1 million net loss from continuing operations.

-- Completed TDF Drilling - Completed the drilling of three additional
development wells, LFE-1001, LV-112 and SLx-1004, on the Las Violetas
Concession. LFE-1001 was cased as a potential gas well after
encountering a potential 7.5 metre gross gas bearing interval in the
Springhill formation; LV-112 was cased as a potential Springhill
formation gas well with 15 metres of potential gross pay; and SLx-1004
was cased on May 22, 2015 as a potential Springhill gas well with 7
metres of potential gross pay. LV-112 was placed on production on June
27, 2015, LFE-1001 is slated for a post fracture clean out in September
and SLx-1004 is slated for a fracture stimulation in September.

-- New TDF 3-D Seismic - Completed the acquisition of new 3D seismic in
TDF, comprised of approximately 58 km2, 49 km2 and 103 km2 on the Rio
Cullen, La Angostura and Las Violetas Concessions, respectively.

-- Petroleo Plus Bonds - On July 13, 2015, the Government of Argentina
issued a new decree under which the Government will offer publically-
traded bonds to qualifying companies with outstanding certificates under
the cancelled Petroleo Plus Program. The Company has approximately $2.1
million of outstanding Petroleo Plus certificates. In August 2015, the
Company was notified by the Argentina Secretary of Energy that it will
receive bonds as settlement of all or a portion its certificates. The
Company cautions that it is assessing the terms and conditions of the
bonds, including the ability and economic conditions to sell the bonds.



The Company anticipates the following activities to occur during the remainder of 2015:



-- Completing the LFE-1001 and SLx-1004 development wells;

-- Completing the interpretation of new 3D seismic in TDF in preparation to
drill one exploration well on each of the Rio Cullen and La Angostura
Concessions in the fourth quarter of 2015, and identifying additional
step-out locations in Los Flamencos for drilling in 2015 and 2016;

-- Continuing TDF fracture stimulation program; and

-- Re-entering and retesting the Vega del Sol x-1 and Vega del Sol x-3
wells in Cerro de Los Leones in the fourth quarter of 2015.



Capital Expenditures

Crown Point estimates a total of $11.5 million of capital expenditures for 2015 comprised of $9 million on the TDF concessions and $2.5 million on the Cerro de Los Leones concession, of which the Company spent $6.8 million on the TDF Las Violetas concessions, $0.6 million on seismic in the Rio Cullen and La Angostura Concessions and $0.1 million on the Cerro de Los Leones concession in the first half of 2015. Crown Point expects to meet these obligations, along with its other anticipated expenses, using funds flow from continuing operations, working capital which totaled approximately $2.4 million at the end of Q2 2015 and the $5.5 million HSBC loan facility obtained on June 30, 2015, of which $1 million was drawn on July 17, 2015 and the remaining $4.5 million is available until October 31, 2015.

SUMMARY FINANCIAL INFORMATION



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June 30 December 31
(expressed in $, except shares outstanding) 2015 2014
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Working capital 2,393,937 2,575,201
Exploration and evaluation assets 15,538,929 14,828,994
Property and equipment 32,858,002 29,063,224
Total assets 58,773,838 57,569,312
Non-current financial liabilities (1) 614,133 1,451,658
Share capital 116,003,355 107,575,856
Total common shares outstanding 164,515,222 130,480,926
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(expressed in $, except
shares outstanding) Three months ended Six months ended
June 30 June 30

2015 2014 2015 2014
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Oil and gas revenue 3,887,066 3,267,888 7,929,749 6,711,681
Net loss from continuing
operations (1,070,071) (996,788) (2,717,391) (2,723,742)
Net loss per share -
continuing operations
(2) (0.01) (0.01) (0.02) (0.03)
Net loss from
discontinued operations - (8,353,156) - (8,462,907)
Net loss per share from
discontinued operations
(2) - (0.08) - (0.08)
Net loss (1,070,071) (9,349,944) (2,717,391) (11,186,649)
Net loss per share (2) (0.01) (0.09) (0.02) (0.11)
Funds flow from
continuing operations 335,954 559,295 414,585 1,159,309
Funds flow per share -
continuing operations
(2) 0.00 0.01 0.00 0.01
Weighted average number
of shares 161,183,271 104,515,222 146,928,561 104,515,222
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(1) Non-current financial liabilities are comprised of bank debt. The total
amount outstanding at June 30, 2015 is $2,088,054 of which $1,473,921
is classified as current and $614,133 is long-term (December 31, 2014 -
$4,748,908; $3,297,250 current and $1,451,658 long-term).

(2) All per share figures are based on the basic weighted average number of
shares outstanding in the period. The effect of options is anti-
dilutive in loss periods. Per share amounts may not add due to
rounding.



About Crown Point

Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in Calgary, Canada, incorporated in Canada, trading on the TSX Venture Exchange and operating in South America. Crown Point's exploration and development activities are focused in the Golfo San Jorge, Neuquen and Austral basins in Argentina. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a basis for future growth.

Advisory

Certain Oil and Gas Disclosures: Barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 Mcf) to one barrel (1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil in Argentina as compared to the current price of natural gas in Argentina is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Non-IFRS Measures: This press release discloses "funds flow from continuing operations" which does not have standardized meanings under International Financial Reporting Standards ("IFRS") and as such may not be comparable with the calculation of similar measures used by other entities. Funds flow from continuing operations should not be considered an alternative to or more meaningful than, operating cash flows from (used by) continuing operations as determined in accordance with IFRS as an indicator of the Company's performance. Management uses funds flow from continuing operations to analyze operating performance and considers funds flow from continuing operations to be a key measure as it demonstrates the Company's ability to generate cash necessary to fund future capital investment. A reconciliation of funds flow from (used by) continuing operations to operating cash flows from (used by) continuing operations is presented in the MD&A under "Non-IFRS Measures".

Forward-looking information: Certain information set forth in this document, including: that the Company expects that completion and tie in operations are expected to be finished in the third quarter; that the Company expects that the improving natural gas price trend will continue due insufficient domestic supply of natural gas in Argentina; that LFE-1001 is slated for a post fracture clean out in September and SLx-1004 is slated for a fracture stimulation in September; that Crown Point expects to receive $2.1 million in publically traded bonds for settlement of its Petroleo Plus Incentive credits; certain matters under the heading "Outlook" including, timing for completing LFE-1001 and SLx-1004, the Company's plans to conduct exploration drilling operations at Rio Cullen and La Angostura based on the newly acquired 3D seismic and timing for the completion of the interpretation of the same as well as identifying additional step out locations at Los Flamencos; plans for continued fracture stimulations under the Company's fracture stimulation program; plans to re-enter and retest Vega del Sol x-1 and Vega del Sol x-3 wells; Crown Point's estimates of capital expenditures in 2015 and the Company's expectations with respect to the manner it will fund such planned expenditures, is considered forward-looking information, and necessarily involve risks and uncertainties, certain of which are beyond Crown Point's control. Such risks include but are not limited to: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; risks associated with ministerial approval of the Agreement (including with respect to the timing of such approval and the terms thereof); risks associated with operating in Argentina, including risks of changing government regulations (including the adoption of, amendments to, or the cancellation of government incentive programs or other laws and regulations relating to commodity prices, taxation, currency controls and export restrictions, in each case that may adversely impact Crown Point), expropriation/nationalization of assets, price controls on commodity prices, inability to enforce contracts in certain circumstances, the potential for a sovereign debt default or a hyperinflationary economic environment, and other economic and political risks; loss of markets and other economic and industry conditions; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling services; incorrect assessment of value of acquisitions and failure to realize the benefits therefrom; delays resulting from or inability to obtain required regulatory approvals; the lack of availability of qualified personnel or management; stock market volatility and ability to access sufficient capital from internal and external sources; and economic or industry condition changes.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Crown Point will derive therefrom. With respect to forward-looking information contained herein, the Company has made assumptions regarding: the impact of increasing competition; the general stability of the economic and political environment in Argentina; the timely receipt of any required regulatory approvals; the ability of Crown Point to realize and monetize any governmental bonds issued as consideration for Petroleo Plus Incentive credits; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the costs of obtaining equipment and personnel to complete the Company's capital expenditure program; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms when and if needed; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration activities; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, commodity price controls, import/export matters, taxes and environmental matters in Argentina; and the ability of the Company to successfully market its oil and natural gas products. Additional information on these and other factors that could affect Crown Point are included in reports on file with Canadian securities regulatory authorities, including under the heading "Risk Factors" in the Company's annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking information contained in this document are made as of the date of this document, and Crown Point does not undertake any obligation to update publicly or to revise any of the included forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities law.

Neither 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Crown Point Energy Inc.
Murray McCartney
President & CEO
(403) 232-1150
mmccartney@crownpointenergy.com
www.crownpointenergy.com

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