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Mackie Research updates coverage on Crown Point Energy (TSXV: CWV)

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Following the closing of its private placement, Analyst Bill Newman gives the company a buy recommendation, reiterating his target of $0.40, a premium of 135% to the $0.17 price on April 13th, the day the report was issued.

Additional Information:

Company: Crown Point Energy
Website: http://crownpointenergy.com/
Stock Symbol: TSXV: CWV
Date Published: Apr 14, 2015
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch.com

Mackie Research has updated coverage on Crown Point Energy, symbol CWV on the TSXS Venture Exchange.

Following the closing of its private placement, Analyst Bill Newman gives the company a buy recommendation, reiterating his target of $0.40, a premium of 135% to the $0.17 price on April 13th, the day the report was issued.

The company completed a total financing of US$15 million through the issuance of shares priced at US$0.25.

Following this closing, Liminar Energy S.A. now holds 54 million shares or approximately 32.8% of the shares outstanding, with GORC S.A. holding 6 million shares or approximately 3.7%.

The 2 new investors have agreed to a holding period of 2 years on their purchases.

Calgary, Alberta based Crown Point Energy is an international oil and gas exploration and development company operating in South America.

The company holds a 100% working interest in Cerro de Los Leones, within the Neuquén Basin, the most active oil and gas basin in Argentina.

The 306,646 acres consist of both large conventional and unconventional plays, with high impact exploration upside.

It also holds a 25.78% working interest, consisting of 126,000 net acres in Tierra del Fuego, within the Austral Basin.

Proceeds from the financing will be used for exploration and development drilling in Tierra del Fuego Argentina and general corporate uses.

The company has a portfolio of more than 20 drilling locations in Tierra del Fuego supported by extensive 3D seismic coverage and plans to conduct additional 3D seismic to further delineate its assets.

Analyst Bill Newman stated: “The private placement financing will help fund continued drilling in Tierra del Fuego which will be a key driver for cash flow in 2015.”

The shares are currently trading at $0.17, well below Mackie Research’s target price of $0.40, and with 164.5 million shares outstanding, the company is capitalized at $28 million.

For more information, please visit the company’s website www.crownpointenergy.com or contact Murray McCartney, President & CEO at 403-232-1150 or email mmccartney@crownpointenergy.com.

For more information about Mackie Research or to obtain the report on crown Point Energy contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.

I’m Samantha Deutscher for InvestmentPitch.com
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This video is for information purposes only and it is not a recommendation to buy or sell any securities.