Crown Point Energy Inc. announces that its wholly-owned subsidiary, St. Patrick Oil & Gas S.A. (formerly named Apco Austral S.A.) (“St. Patrick“), has completed the sale to its joint venture partners of a 16.8251% participating interest in the Rio Cullen, Las Violetas and La Angostura hydrocarbon exploitation concessions located in the Tierra del Fuego region of the Austral basin in southern Argentina (the “TDF Concessions“).  As a result of the Disposition, Crown Point’s participating interest in the TDF Concessions has decreased from 51.56% to 34.7349%.

St. Patrick received US$13.5 million in cash as consideration for the Disposition, and will also receive certain contingent consideration. The Base Price was paid free and clear of any deduction, discounts, withholdings and any applicable taxes (other than any stamp taxes that apply, which will be shared equally between St. Patrick and the Purchasers, and other than any applicable taxes arising from any amount payable on account of the Additional Consideration).

When Crown Point acquired St. Patrick in June 2018 from a third party, it agreed to pay up to US$9 million of contingent royalty payments to the third party pursuant to a royalty agreement (the “Royalty Agreement”) during a ten-year period commencing on January 1, 2018 (the “Royalty Period”).  The Additional Consideration payable by the Purchasers in connection with the Disposition will be (i) equal to 65.2651% of all royalties accrued under the Royalty Agreement from the closing date of the Disposition until the end of the Royalty Period, and (ii) capped at US$5,873,859 less 65.2651% of all royalties paid or payable by Crown Point and Crown Point Energía S.A. under the Royalty Agreement up to the closing date of the Disposition.