CALGARY, ALBERTA--(Marketwired - Feb. 10, 2015) - Crown Point Energy Inc. (TSX VENTURE:CWV) ("Crown Point" or the "Company") today warned shareholders not to fall for a façade presented by dissident shareholder LAIG Oil Investments ("LAIG") in its attempt to take control of Crown Point's Board and the Company itself. Crown Point also sets the record straight with respect to LAIG's inaccurate criticisms and LAIG's misleading claims.
"Crown Point is ready to move forward with two new, highly-respected and influential Argentine Board members and with the capital and expertise we need to advance our development and exploration program in Argentina," said Gordon Kettleson, Chairman of Crown Point's Board. "We are confident that we can significantly increase our production at Tierra del Fuego ("TDF") in 2015 compared with 2014."
"LAIG is trying to lure shareholders into voting for it based on empty promises and we urge shareholders to see through LAIG's façade," continued Mr. Kettleson. "If LAIG wins control of the Board, Crown Point's future will be at LAIG's mercy and Crown Point's stewardship will be in the hands of three dissidents with no experience as directors of Canadian public companies and a mystery CEO candidate."
Crown Point notes that it has received the recommendation of Institutional Shareholder Services Inc. ("ISS"), a leading independent international corporate governance analysis and proxy advisory firm, following a review of the issues raised by both Crown Point and LAIG. ISS recommends that shareholders vote in favour of the Second Tranche and against LAIG, concluding: "Given the financing back-up and the strategic relationship with the strategic investors, and the overall positive trend of expected increasing production volumes, it may be reasonable to allow some more time for management to deliver the results on TDF."(1)
Crown Point reminds shareholders that the only bona fide financing available to Crown Point is its US$8.5 million second tranche financing (the "Second Tranche") with Crown Point's strategic investors (the "Strategic Investors"). Crown Point urges shareholders to act today and vote the WHITE proxy to protect Crown Point's future. Vote FOR the Second Tranche, which Crown Point requires to meet its 2015 obligations. Vote AGAINST LAIG's resolutions to take control of the Board and ultimately the Company.
Second Tranche financing provides critical capital and cements an alliance
The Second Tranche financing will provide critical capital so that Crown Point can advance its promising 14-well exploration and development program at TDF and a follow-up five-well program that is currently being planned. The 14-well program, which is still underway, has already resulted in significant production growth.
Moreover, Crown Point believes that its alliance with the Strategic Investors, who are providing the Second Tranche financing, will help grow the Company into a significant player in Argentina. The Strategic Investors have strong reputations in Argentina, extensive experience in Argentina's energy and banking industries, and deep relationships within the local Argentine business community. Crown Point anticipates that the Strategic Investors will enable Crown Point to gain access to new opportunities through, among other things, acquisitions and farm-ins on strategic assets.
LAIG's Façade Versus The Facts
Crown Point believes that LAIG has repeatedly either embellished or omitted significant details in its communications to Crown Point's shareholders. Supplemental and supporting information can be found in our Management Information Circular (the "Circular") and on our website www.crownpointenergy.com/proxycontest. After reading the Circular, shareholders should consider the following examples and ask themselves, "Is LAIG trustworthy and will it act in the best interests of all shareholders should it gain control of the Board and the Company?"
We urge you to follow the voting recommendations of Crown Point and ISS, a leading independent international corporate governance analysis and proxy advisory firm
Protect Your Investment and Vote the WHITE Proxy FOR the Second Tranche and AGAINST the Dissidents
To learn more about the reasons for Crown Point's voting recommendations, which have been supported by ISS, shareholders should read Crown Point's proxy materials, including a Letter to Shareholders and Circular, both dated January 22, 2015. The Circular and other materials have been mailed to shareholders and are available on Crown Point's website at www.crownpointenergy.com/proxycontest and on SEDAR at www.sedar.com.
ACT NOW - Vote before 10:00 am Calgary time on February 20, 2015. Vote for growth, investment and experience for Crown Point. Vote to halt LAIG's opportunism.
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 Austral and Neuquén 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
This press release contains forward-looking information. This information relates to future events and the Company's future performance. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "propose", "predict", "potential", "continue", "aim", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking information. Such information represents the Company's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. This information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Crown Point believes that the expectations reflected in this forward-looking information are reasonable; however, undue reliance should not be placed on this forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.
This press release contains forward-looking information concerning, among other things, the following: the Company's assessment of LAIG's motivations, capabilities and the intended outcomes of its actions; the Company's assessment that its can materially increase its production at Tierra Del Fuego (TDF) in 2015 compared with 2014; the Company's assessment that if LAIG wins control of the Board, Crown Point's financial future will be at LAIG's mercy and Crown Point's stewardship will be in the hands of three dissidents with no experience as directors of Canadian companies; Crown Point's belief that its alliance with its strategic investors, who are providing the Second Tranche financing, will help grow the Company into a significant player in Argentina; Crown Point's belief that the strategic investors will enable Crown Point to gain access to new opportunities through, among other things, acquisitions and farm-ins on strategic assets; Crown Point's assessment of the potential risks associated with LAIG's purported business plan for Crown Point; and matters with respect to the date and time for the meeting and anticipated proxy cut-offs for the same.
A number of risks and other factors could cause actual results to differ materially from those expressed in the forward-looking information contained in this press release including, but not limited to, an incorrect assessment by the Company of the matters and opinions expressed herein; the risk that the remaining portion of the financing with the strategic investors is not competed in a timely manner (or at all) or on the terms presently proposed; the risk that the Company is unable to realize the anticipated benefits of the financing with the strategic investors; the risk that the meeting date and time may be delayed, adjourned or otherwise; the risks and other factors described under "Risk Factors" in the Company's Annual Information Form, which is available for viewing on SEDAR at www.sedar.com.
With respect to forward-looking information contained in this press release, Crown Point has made assumptions regarding, among other things: the general stability of the economic and political environment in which the Company operates; the timely receipt of any required regulatory approvals; the ability of the Company to fully complete the remaining portion of the proposed financing with the strategic investors in a timely manner (or at all) or on the terms it presently contemplates; the ability of the Company to continue as a going concern without the loss or forfeiture of any assets; the time and date of the Meeting (and related voting cut-offs); that ISS will not change or modify its recommendations; and that LAIG's motivations and intended outcomes are as set forth herein. Management of Crown Point has included the above summary of assumptions and risks related to forward-looking information included in this press release in order to provide investors with a more complete perspective on the Company's future operations. Readers are cautioned that this information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking information contained in this press release are expressly qualified by this cautionary statement.
The forward-looking information contained herein is made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws.
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.
(1) Permission to quote from the ISS report was neither requested nor received
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