Junior oil and gas company Crown Point Ventures Ltd. (CWV:TSXV) recently announced its plans to drill between 10 and 24 wells in San Jorge Basin in the next 24 months and two to four wells in the Neuquén Basin. Canadian brokerage Canaccord Genuity replied to this operational update by maintaining its C$3.00 target share price and SPECULATIVE BUY rating for the company. Canaccord is planning on sticking to its current estimates until the latest budget is approved.

The junior oil and gas company has confirmed its drilling plans in the San Jorge Basin over the next 24 months. Drilling in this exploration and production area means taking on less risk. Both field electrification and the wells that will be drilled will likely contribute to production for this area. After starting out with three or four wells, Crown Point Ventures will drill another two or three wells on the Canadon Ramirez block. The San Jorge Basin is located in central Patagonia, and is one of the highest hydrocarbon-producing plays in Argentina, according to Mendeley.

Drilling activities in the Neuquén Basin are on hold pending the issue of environmental permit. Fortunately, the permit for the Cerro Los Leones Block is expected to be granted shortly. The company has initial plans to drill between two and four wells. Two of these are high impact conventional exploration wells. The Neuquén Basin is the largest producer of hydrocarbons in Argentina, Quantec Geoscience Ltd. reports.

Canaccord Genuity's C$3.00 target share price for the junior oil and gas company is derived from a net asset value estimate of C$3.06 per fully diluted share, which consists of C$2.18 per share in risk exploration upside potential and C$0.88 per share of proven plus probably reserve value. Crown Point Ventures Ltd. closed at C$1.09 on November 9 and hit a 52-week high/low of C$2.40 and C$0.97, respectively.