Crown Point Energy Inc. provided an update regarding its drilling operations at La Angostura Concession, Tierra del Fuego. San Martin Oil Field -- La Angostura Concession (WI 34.74%) As previously reported, in March 2022, Crown Point and its partners drilled an appraisal well (SM a-1004) to evaluate the Tobífera formation and overlying Springhill formation on the western crest of the San Martín high. The well was drilled to a total depth of 2,097 meters and cased as a potential oil well with indicated log pay in fractured Tobífera volcaniclastics and Springhill sands.

An extensive completion and flow test program to evaluate the Tobífera began on March 22 and was completed on May 10, 2022, at which time the well was connected to the San Martin battery and placed on production on May 11. During the following 15 day period, SM a-1004 has produced at an average rate of 815 (net 283) barrels of 34 API oil per day with a 0.3% water cut at a flowing well head pressure of 160 PSI. The flow rate is being restricted through a14 mm choke.

In May 2022, a work over was performed on SM a-1003 to perforate and evaluate the Springhill Formation sands. The well was drilled in July 2018 and completed as a Tobífera oil well but has since produced minor amounts of oil on an intermittent basis. Preliminary swab testing of the overlying Springhill interval over a 24 hour period recovered 220 barrels of fluid comprising 90 barrels of light oil and 130 barrels of formation water (60% water cut); the well will be placed on long term pump test for further evaluation.

During May 2022, the San Martin oil pool production averaged 1,860 (net 646) barrels of oil per day. San Martin oil production is being trucked to and stored at the Total Argentina operated offshore loading facility located at Rio Cullen, TDF for subsequent sale into the international market, or trucked and sold to Enap (the Chilean state oil company) at its domestic oil facility located at San Gregorio, Chile. The sale price at both Rio Cullen and San Gregorio is indexed to the Brent oil price.

Construction of the 6 inch oil pipeline connecting the San Martin oil battery to Total's Rio Cullen facility is scheduled for completion and commissioning in third quarter of 2022.