Crown Point Energy Inc. announced that its wholly-owned subsidiary has entered into an agreement with Petrolera Aconcagua Energía S.A. ("Aconcagua") to acquire a 50% working interest in the Puesto Pozo Cercado Oriental hydrocarbon exploitation concession (the "Concession") from Aconcagua (the "Acquisition"). Aconcagua will retain the remaining 50% working interest in the Concession and will continue to operate the Concession jointly with the Chañares Herrados concession (in which Crown Point and Aconcagua are also 50/50 working interest partners). The Concession, which expires in August 2043, is located in the Cuyana basin in the Province of Mendoza adjacent to the Chañares Herrados concession and covers approximately 63 square kilometers.

There is 2D seismic on 100% of the Concession area and 3D seismic on 80% of the Concession area. Crown Point will pay USD 5 million for its 50% working interest in the Concession at closing, which it will fund from the proceeds of its recently completed note offering. Crown Point will also pay up to an additional USD 7.53 million in quarterly installments based on a percentage of the EBITDA derived from Crown Point's interest in the Concession (the "Contingent Consideration"), provided that the Contingent Consideration will not be payable until Crown Point has recovered its initial USD 5 million investment from its share of the EBITDA derived from the Concession.

The Acquisition is expected to close on or about August 16, 2022.