Mr. Gabriel Obrador reports

CROWN POINT ANNOUNCES OPERATING AND FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Crown Point Energy Inc. has released its operating and financial results for the three months ended March 31, 2023.

Copies of the company's March 31, 2023, unaudited condensed interim consolidated financial statements and management's discussion and analysis filings are being filed with Canadian securities regulatory authorities, and will be made available under the company's profile at SEDAR and on the company's website. All dollar figures are expressed in U.S. dollars unless otherwise stated.

In the following discussion, the three months ended March 31, 2023, may be referred to as first quarter 2023. The comparative three months ended March 31, 2022, may be referred to as Q1 2022.

Q1 2023 summary

During Q1 2023, the company:

• Reported net cash provided by operating activities of $900,000 and funds flow provided by operating activities of $100,000 as compared with Q1 2022, when the company reported $30,000 of net cash used in operating activities and $50,000 of funds flow provided by operating activities;
• Earned $7.1-million of oil and natural gas sales revenue on total average daily sales volumes of 1,566 barrels of oil equivalent per day, higher than $5.5-million of oil and natural gas sales revenue earned on total average daily sales volumes of 1,425 boe per day in Q1 2022; in Q1 2023, higher oil sales volumes from PPCO concession, acquired in third quarter 2022, and higher sales volumes from the TDF concession;
• Received an average of $4.33 per thousand cubic feet for natural gas and $64.42 per barrel for oil compared with $2.84 per mcf for natural gas and $62.49 per bbl for oil received in Q1 2022;
• Reported an operating netback of $8.52 per boe, down from $13.39 per boe in Q1 2022;
• Obtained $1.9-million of working capital and overdraft loans and repaid $200,000 of working capital loans;
• Reported a loss before taxes of $2.4-million and a net loss of $1.9-million as compared with Q1 2022, when the company reported a loss before taxes of $1.7-million and a net loss of $1.6-million;
• Reported a working capital deficit of $4.6-million.

Subsequent events

Subsequent to March 31, the company:

• Obtained and repaid $2.9-million and $200,000, respectively, of working capital and overdraft loans.

Outlook

The company's capital spending on developed and producing assets for fiscal 2023 is budgeted at $13.2-million. During Q1 2023, the company incurred $1.0-million of capital expenditures composed of $200,000 in the TDF concessions and $800,000 in the Mendoza concessions.

Additionally, the company plans to spend $800,000 on the testing of the gas-bearing sandstone layers of the Neuquen group at CLL during 2023.

About Crown Point Energy Inc.

Crown Point 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 Argentina. Crown Point's exploration and development activities are focused on three producing basins in Argentina: the Austral basin in the province of Tierra del Fuego, and the Neuquen and Cuyo (or Cuyana) basins in the province of Mendoza. 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.

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