74stingray
11 years ago
Another Local Anti Fracking Story Published Today Jan-27th 2014
http://www.thetelegram.com/News/Local/2014-01-27/article-3591706/People-not-convinced-by-argument-for-fracking%3A-NDP/1
People not convinced by argument for fracking: NDP
Frank
Frank Gale
Published on January 27, 2014
Jonathan Stewart liked the message MHA George Murphy brought to an anti-fracking event in Stephenville.
Jonathan Stewart, who attended an anti-fracking meeting in the United Church Hall in Stephenville Saturday, signs petitions opposing fracking. — Photos by Frank Gale/The Western Star
He especially liked the fact that the NDP environment and conservation critic talked about how Lone Pine Resources Inc., a U.S. fracking company registered in Delaware, which wanted to frack for gas under the St. Lawrence River in Quebec, has threatened to sue Canada under the North American Free Trade Agreement (NAFTA) because of Quebec’s moratorium on fracking.
He said the company is saying this moratorium is violating the oil company’s right to frack and it’s demanding $250 million in compensation.
In October of 2013, groups such as the Council of Canadians, the Sierra Club, For Love of Water (FLOW), Eau Secours!, and AmiEs de la Terre were gathering signatures for a letter to Lone Pine urging the company to drop plans to sue Canada.
It was at that time the groups discovered that Lone Pine had quietly filed a request for arbitration indicating the company was moving forward with the NAFTA lawsuit.
Murphy said Saturday the proposed Comprehensive Economic and Trade Agreement (CETA) between the European Union (EU) and Canada would grant energy companies far-reaching rights to challenge bans and regulations of shale gas development, such as fracking.
“I think Mr. Murphy is showing great concern about hydraulic fracturing and I’m glad he brought to everyone’s attention these facts about NAFTA and CETA and how, through them, the rights of the corporation are protected rather than the rights of the people who live here,” said Kathy Marche, a resident of Kippens and a member of the Port au Port/Bay St. George Fracking Awareness Group.
Stewart, one of nearly 70 who attended the event, entitled People’s Frackdown 2, said it was nice to see Murphy explain the issues with NAFTA and CETA because he strongly opposes this proposed hydraulic fracturing process.
Stewart said people in the area should be careful of who they vote for during the next provincial election to deal with this fracking issue.
“We need someone who is going to be trustworthy and have our best interest at heart,” he said. “We need less secrecy from our elected officials and a matter as serious as fracking should be able to be voted on by the people.”
Stewart said, as a worker in Alberta who gets out to oil sites, he doesn’t trust a thing that oil companies say.
“For them it’s anything for profit with little care about the environment.”
Murphy, the NDP MHA for St. John’s East, has been active in the political fight that resulted in the province implementing a moratorium on fracking in November.
He said his role is to give people a voice in the House of Assembly and make sure they can put a face to the issue.
In early November of 2013 Natural Resources Minister Derrick Dalley declared a moratorium on fracking in the province. He announced government will not approve fracking onshore and onshore-to-offshore hydraulic fracturing pending further review and government would be doing public consultation before it develops any policy for fracking.
Murphy said even though the moratorium is on, there is a lot of distraction with the Tory leadership, so the NDP hopes to make sure the issue stays at the forefront.
“We want to make sure that if government is going to have that review, that it’s going to be an independent review so government can keep their hands off it,” Murphy said.
“Also, to make sure it’s totally scientific,” he added.
Murphy said the NDP would like to see a strengthening of environmental regulations and a full disclosure of chemicals used in fracking.
“If it’s going to be an unsafe process here, particularly when it comes from a worker’s point of view, along with health and the protection of water, then it can’t be allowed to happen,” he said.
Murphy said if people in the province begin hearing of the quality of water being compromised, it’s certainly a good basis to not do fracking at all.
“There are a number of views here, but the biggest view is that (the government) has not convinced us yet of a valid argument for fracking,” he said.
74stingray
11 years ago
http://www.thetelegram.com/News/Local/2013-12-13/article-3542394/Shoal-Point-Energy-takes-hit%2C-blames-N.L.-and-CNLOPB/1
Shoal Point Energy takes hit, blames N.L. and CNLOPB
AshleyAshley FitzpatrickPublished on December 13, 2013Share 40 10 Comment
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Company looking to frack in western Newfoundland to lose licence and $1 million
Shoal Point Energy, a promoter of fracking for oil in western Newfoundland has revealed a damaging regulatory loss — one it is largely laying at the feet of the provincial government and the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB).
A map of exploration licences managed by the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) in western Newfoundland. — Image courtesy of the CNLOPB
In a statement issued Thursday night, the company revealed it will be losing one of its exploration licences in the region, along with a $1-million deposit it put down for the permit.
The licence, known as EL 1097R, covers access to an area of about 500,000 acres, reaching from just off Corner Brook, up the coastline to off Gros Morne National Park.
Offshore exploration licences are awarded by the CNLOPB with requirements for specific activity, required spending on oil exploration, within set dates. The measure is meant to ensure that companies do not simply sit on permits, keeping others interested from being active in the area.
According to its own statement, Shoal Point Energy had yet to live up to its commitments within the area to which it has now lost access.
The company states it has not been able to move forward because of delays by the provincial government in providing guidelines for an environmental review of suggested projects.
It also says the CNLOPB rejected a proposal put forward that would allow for an extension on part of the company’s licence, leaving out the area around Gros Morne park. Complete loss of the existing licence and deposit “due to a change in the regulatory environment beyond its control” would be unfair, the company suggested, offering $250,000 for the partial renewal.
High and costly expectations
The EL 1097R licence was to be stripped from Shoal Point Energy in January 2013 but, at the request of the company and with a fresh cash commitment, the CNLOPB awarded a one-year extension, giving more time to get an exploratory project up and running.
The one-year timeline was despite the fact any onshore to offshore drilling program would be the first of its kind for the province.
It was also despite the fact the company’s suggested projects had been met with fierce opposition from people living in the region and anti-fracking groups with further reach.
The idea of drilling onshore to offshore and fracking in areas adjacent to Gros Morne National Park were particularly controversial, drawing cautions and pointed questions from otherwise unengaged groups and individuals.
“We are disappointed by this decision.” — Mark Jarvis, CEO of Shoal Point Energy
Not finished yet
Shoal Point’s lost licence is one of three it holds in western Newfoundland and the largest.
The area covered by the company’s licences totals about 720,000 acres, according to the latest statement. Of that total, EL 1097R covers about 500,000 acres.
As of Jan. 15, 2014, as a result of the CNLOPB’s decision, Shoal Point Energy’s exploration acreage will be cut to about 220,000 acres, confined to the areas known as EL 1070 and EL 1120.
“We are disappointed by this decision,” said Mark Jarvis, CEO of Shoal Point Energy, on the rejection of the proposal for a partial licence renewal.
“We feel that our proposal recognized and respected the importance of Gros Morne National Park, a UNESCO world heritage site. Our proposal balanced a desire to protect this unique and beautiful park with a desire to safely and responsibly develop a much needed economic opportunity on the west coast of Newfoundland.”
The statement followed a move by the company to halt trading of company securities. It is listed on the CNSX exchange under the symbol “SHP.”
While Shoal Point Energy maintains access to two offshore licence areas, it still faces a regulatory issues.
In early November, the government of Newfoundland and Labrador put a roadblock in the way of the company’s stated long-term plans — announcing applications for onshore or onshore-to-offshore oil projects involving fracking would not be accepted.
The moratorium on fracking has no set end date.
Other companies that have suggested projects involving fracking have, at least for the near term, re-focused their planning on more traditional onshore drilling projects, with no fracking involved.
futrcash
11 years ago
Fund Raise @ .06 with .15 Options-
Shoal Point Completes Additional Financing, Concludes Shares for Debt Settlement with a Creditor and Announces Further Changes to the Board of Directors
Toronto, ON: Shoal Point Energy Ltd. (“SHP†or the “Companyâ€) (SHP on CNSX) (SHPNF on OTCQX) announces that it has raised a further $1,168,533 from the issuance of 19,395,556 common share units at $0.06 and 80,000 flow through common share units at $0.06. The common share units are comprised of one common share and one full warrant whereby each warrant entitles the holder to acquire one additional common share at a price of $0.15 for a period of 24 months. The flow through common share units include one flow through common share and one-half warrant whereby a full warrant entitles the holder to acquire one additional common share at a price of $0.15 for a period of 24 months. In connection with this financing, the Company paid $32,492 cash commissions and issued 541,533 broker warrants where each warrant entitles the holder to acquire one common share at a price of $0.10 for a period of 18 months.The proceeds of this financing will be used to reduce outstanding payables including settlements with certain officers and directors, to retire the outstanding convertible debenture and for general working capital purposes.
Debt Settlement with Creditor
Shoal Point also announces that it has settled its financial obligations with Dragon Lance Management Corporation (DLMC), the designated operator and driller on 3K-39. Shoal Point has agreed to issue to DLMC a total of 9 million common shares of the Company to settle all debts owed by Shoal Point to DLMC and its principals. The shares have a deemed value of $540,000 at $0.06 per share and this settlement represents a substantial reduction from the amount originally sought by DLMC.
Proposed changes to the Board of Directors and Management
The Company also announces that as a consequence of its transition from operator to the role of a non-operating company, its Chairman, Norman Davidson Kelly will not stand for re-election to the Board of Directors at the shareholders meeting being held on Friday, June 28, 2013.
Mr. Kelly will remain a major shareholder in Shoal Point and he has played a significant role in identifying and understanding the nature of this oil-in-shale resource. From the time of his becoming involved with Shoal Point, he was able to engage the services of NuTech Energy Alliance, one of the world’s leading petrophysical analysis firms based in Houston, Texas, and utilize their expertise to understand the geology and the potential enormity of the oil resource. The Board and Management of Shoal Point express their thanks to Mr. Kelly for all of his efforts on behalf of the Company.
The Company expects to replace Mr. Kelly on the Board of Directors with a qualified representative from the Province of Newfoundland & Labrador.
About Shoal Point Energy Ltd.
Shoal Point Energy Ltd is a public company with a 100% interest, subject to a 1.38% gross overriding royalty, in Exploration Licence 1070 in the Province of Newfoundland comprising approximately 150,000 acres of oil-in-shale. In addition, Shoal Point has an agreement to earn a net 80% interest in the 67,298 acres of Green Point Shale (shallow rights) of EL 1120 which is owned by Ptarmigan Energy Corp. It also has a 100% working interest in the 502,000 acres in EL 1097R, subject to a 2% gross overriding royalty. The total potential gross acreage in the Green Point Shale is approximately 720,000 acres.
Shoal Point also has an agreement with Black Spruce Exploration Corp (BSE) whereby BSE can earn up to 60% of Shoal Point’s interest in these three Exploration Licences by drilling a total of 12 wells over the next 2 years. In addition, Shoal Point has an Area of Mutual Interest with BSE which includes a large block of onshore lands and all of the area within, upon or under the Farmout lands.
Shoal Point currently has 413,998,903 common shares issued and outstanding.
Visit our website at www.shoalpointenergy.com Â
For further information, please contact:
David Black - 416-637-2181 ext 308
Hayley Clift - 416-637-2181 ext 306
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futrcash
12 years ago
Shoal Point announces plans to ship Oil Rig to Newfoundland
Toronto, Ontario: Shoal Point Energy Ltd. (“Shoal Pointâ€) (SHPNF on OTCQX) (SHP on CNSX) announces that it has been advised by its farmin partner, Black Spruce Exploration Corp. (BSE) that it is preparing to ship an oil rig, pipe and other essential drilling supplies to Newfoundland in the month of April.Â
The oil rig, which was recently acquired by an affiliate of BSE, will be used in drilling 4 wells in 2013 on Shoal Point’s acreage in the Green Point Shale pending regulatory approvals. The rig is a Superior 700 UE D/D Drawworks 800 model. To see photographs of the rig type, visit http://www.blspexp.com/newsmedia/photos.htm.
“Along with the oil rig, we are shipping key back-up parts to ensure redundancy—tubing, casing and all of the supplies we will need to drill our four wells in 2013,†notes David Murray, President & Chief Executive officer of Black Spruce Exploration. It’s quite an extensive inventory—millions of dollars worth.â€
BSE plans to ship the oil rig and supplies from Houston via a heavy-lift ship vessel in the month of April. It will take approximately one month to arrive at its destination in Stephenville, Newfoundland.
George Langdon, President of Shoal Point sees this activity as an important step towards the evaluation of the Green Point Shale and in the transition to making Black Spruce Exploration the operator of the joint venture
“I’m very excited to see the progress Black Spruce Exploration is making as it becomes the official operator in our partnership. They have an experienced management team and board of directors, who understand the shale play and the methodology needed to extract hydrocarbons in the most economic and environmentally-sensitive way.â€Â
About Black Spruce Exploration Corp (‘BSE’).
BSE, with offices in Calgary, Alberta, and St. John’s and Corner Brook, Newfoundland, is an exploration and production company which has the right to earn an interest in Shoal Point’s property rights, licenses and interests in the province of Newfoundland and Labrador under terms of a farm-in agreement, entered in to by the parties on 14th January 2013. For more information on Black Spruce Exploration Corp., visit www.blspexp.com .
About Shoal Point Energy Ltd.
Shoal Point is a Canadian-listed public company (SHP:CNSX) with a large working interest position in a regionally-extensive “tight†oil play within the Cambro-Ordovician Green Point Formation (“Shaleâ€) of western Newfoundland.Â
Shoal Point’s current holdings in western Newfoundland consist of: (1) a 100% working interest in the Green Point shale rights (“shallow rightsâ€) in EL 1070, comprising approximately 150,000 acres of prospective shale area, (2) a right to earn an 80% working interest in the “shallow rights†within a nearshore portion of EL 1120, held by Ptarmigan Energy Inc., comprising approximately 67,000 acres, and (3) a 100% working interest in all rights in EL 1097R, comprising approximately 500,000 acres, for a total exposure of approximately 720,000 gross acres to the Green Point “Shale†play.
Black Spruce Exploration has the right to earn up to 60% of Shoal Point’s interest in these three Exploration Licences by drilling a total of 12 wells over the next two years.
Shoal Point currently has 385,696,680 common shares issued and outstanding.
Visit our website at www.shoalpointenergy.com Â
For further information, please contact:
David Black -Â 416-637-2181 ext 308
Hayley Clift - 416-637-2181 ext 306Â Â
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. The forward looking statements contained in this press release are made as of the date hereof and Shoal Point Energy Ltd. undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Â
futr
prokopton
12 years ago
I was expecting at least a 20% drop on the environmental review news. Looks like the stock is holding up well despite it. A good sign.
--------------------------
Newfoundland Shale Oil Find By Shoal Point Energy Is Potentially Huge
CALGARY - As a junior energy explorer comes closer to finding out whether North America's next big shale oil find lies beneath the western coast of Newfoundland, concerns are being raised about the environmental effects fracking could have in the remote region.
Shoal Point Energy Ltd. (CNSX:SPE) spent the winter holidays hammering out a farmout deal with Black Spruce Exploration, a subsidiary of Foothills Capital Corp., that will enable as many as 12 exploration wells to be drilled over the next few years in the Green Point shale.
After that, the companies aim to have a better idea of how much black gold can be coaxed out the narrow stretch of rock — and hopefully attract deeper pocketed investors to help scale up the discovery.
"It's not the big long-term solution yet," Shoal Point chief executive officer George Langdon said in an interview.
As in other shale formations throughout North America, tapping the Green Point will require hydraulic fracturing, or fracking, to unlock the resource. The process involves injecting a mixture of water, sand and chemicals underground at high pressure in order to crack the rock.
Fracking has unleashed huge supplies of natural gas and oil from shales across the continent, but it also brings with it controversy over its potential environmental effects.
Bob Diamond, chair of the Bay St. George Sustainability Network, said fracking has become a hot topic in his community.
Less than a dozen people attended his group's first meeting on the issue, but that number swelled to 60 for a second gathering last week.
"We're not against oil or oil development or exploration," Diamond said from Stephenville, N.L.
"We want to ensure that it's not going to have any significant impact on our health or our environment."
In addition to the safety of the fracking process itself, Diamond said he's also worried about all of the trucks and heavy equipment moving around the area and the safety of drilling in a coastal region prone to wild weather.
He also wants to make sure that other industries, such as tourism and fisheries, aren't harmed.
"I'd like to see a moratorium on gas and oil fracking," said Diamond.
"In Newfoundland, there's actually no kind of regulatory structure in place yet to deal with fracking, which alarms a lot of people."
He said recent fracking guidelines set out by the New Brunswick government seem to strike the right balance, and he'd like to see his province follow suit.
David Murray, CEO of Foothills Capital Corp., said although fracking is new to western Newfoundland, the technology has been around for a long time and has been safely used around the world.
"We know that people will be concerned about it because they're not as experienced in this area as to what's involved. But do we see any real technical issues here? The answer is no," he said.
He said there are no groundwater sources at risk from the drilling.
Shoal Point, a small Toronto-based outfit, set up a data room last summer where potential partners could access company information. Firms from around the world — some large and some small — took a look at what Shoal Point had to offer.
Langdon had expected the potential size of the Green Point — one estimate pegs it as having 23 billion barrels of oil in place — would be enough to lure a big-name partner.
But so far no major firms have been reeled in, likely because there is still a lot of drilling to be done before they're convinced those barrels can be produced economically.
"I think that it's big enough now and they should be looking at it," said Langdon.
"It's a new area. Maybe not many people are as familiar with the geology as we are. In any case, that's the way they look at it and I think the time will come when we'll be very, very interested in it."
Black Spruce brings shale oil expertise to the table and can help take operating costs off of Shoal Point's shoulders.
"These guys were having a tough time even though all the geological information seemed to be outstanding," said Murray.
Another Foothills subsidiary works in the Bakken shale, a massive oil deposit centred in North Dakota that's producing enough oil to drastically alter the North American market.
Black Spruce is arranging with other Foothills affiliates to bring drilling equipment and materials to the remote area of Newfoundland, where so far it's been costly and logistically difficult to drill.
"We felt that we could provide a solution for these guys that many other people couldn't, where they'd have to go to many different places to shop," said Murray.
In the first phase of the partnership, Black Spruce has agreed to drill one well on each of Shoal Point's three blocks for a 40 per cent interest.
Black Spruce will also have the option to drill a fourth well in a location of its choosing, enabling it to earn a 50 per cent interest.
Once the optional well is drilled, the companies can choose to enter their deal's second phase, which involves drilling up to eight more wells, giving Black Spruce a 60 per cent interest.
The top priority will be to finish off a well on the southernmost block, where Shoal Point's lease has already expired. The regulator, the Canada-Newfoundland Offshore Petroleum Board, has been "patient" in allowing Shoal Point time to complete the work this year.
"As the first company exploring for an unconventional play in offshore Newfoundland, they've given us a lot of discretion and flexibility to prove that this could be a commercial venture. And we are very appreciative of that fact," said Langdon.
Once Shoal Point and Black Spruce have proven that oil can be produced from the rock, they can apply to the board for a significant discovery licence.
Shoal Point is by far the biggest landowner in the Green Point, having amassed more than 280,000 hectares across its three blocks. Shoal Point owns 100 per cent of two of those blocks and 80 per cent of another.
Shoal Point's activity so far has been at the south edge of the formation, which stretches north along the coast well past Gros Morne National Park.
The Green Point extends into the offshore, but the wells are being drilled from on land into the formation.
Recent fluid injection tests by Shoal Point's Houston-based contractor showed promising results when it comes to the rock's permeability.
"Every time we turn over a stone, things look better on the technical side. We're very, very happy about that," said Langdon.
Murray said there's "no question" the Green Point holds a lot of oil, but it remains to be seen how much of it can flow to the surface on its own steam.
"There's only one way to determine that at this point from the technology that we have today, and that's to actually drill."
futrcash
12 years ago
Link to 'Black Spruce' Shoal Point's JV Partner's website-
Black Spruce is the Operator-
http://www.blspexp.com/index.htm
http://www.blspexp.com/newsmedia/NewsRelease_January_14_2013.pdf
Phase I Earning Program (2013-2014):
BSE will drill one well on each of EL’s 1070, 1120, and 1097R.
• on EL 1070, the Shoal Point 3K39 well will by June 15, 2013 be re-entered and
sidetracked from surface casing to drill, stimulate, complete and evaluate prospective oilbearing zones within the Green Point shale formation. Earning depth of the well will be
1800 metres below sea level;
• on EL 1120, a well will be drilled, stimulated, and completed to evaluate prospective oilbearing zones within the Green Point shale formation. Earning depth of the well will be
3000 metres below sea level;
• on EL 1097R, a well will be drilled, stimulated, and completed to evaluate prospective
oil-bearing zones within the Green Point shale formation. Earning depth of the well will
be 3000 metres below sea level;
Page 1 of 6
Having met the conditions of the above program, BSE will earn a 40% interest in SPE’s working
interest rights, that is, 40% of “shallow rights” in EL 1070, where SPE currently holds a 100%
working interest, 40% of all rights in EL 1097R, where SPE currently holds a 100% working
interest, and 32% of “shallow rights” in EL 1120, where SPE currently holds the right to earn an
80% working interest from Ptarmigan Energy Inc. by drilling a well to test the Green Point shale.
(n.b. The definition of “shallow rights” includes all Green Point rights on these properties).
Optional Phase 1 Earning Well: Upon rig release at the third earning well above, BSE will have
the right to elect, within a period of 60 days, to drill, stimulate, complete and evaluate a fourth
well at a location of its choice, on either of the three EL’s noted above, to earn an additional 10%
of SPE’s working interest in all three properties. Having so elected, BSE will be required to spud
this well by April 30, 2014.
If all the conditions of Phase 1 Earning are met, then BSE will hold a 50% working interest in
SPE’s rights in west Newfoundland (50% of “shallow rights” in EL 1070; 50% of all rights in
EL 1097R, and 40% of “shallow rights” in EL 1120) at the conclusion of Phase 1 Earning.
Application for Significant Discovery Licenses: During Phase 1 earning, upon the successful
testing and recovery of petroleum in an exploration well on a particular license, BSE and SPE
(the “Parties”) will cooperate to apply to the Canada-Newfoundland Offshore Petroleum Board
for a Significant Discovery License (“SDL”) for that property, which when awarded will allow
the parties to hold, develop and produce from the lands.
futr
futrcash
12 years ago
January 17, 2013
SHOAL POINT ENERGY EXTENDS TERMS ON WEST NEWFOUNDLAND
EXPLORATION LICENCES 1120 AND 1097R
Toronto, Ontario: Shoal Point Energy Ltd. (“Shoal Point” “SPE” or the “Company”) (SHPNF on
OTCQX) (SHP on CNSX) announces that it has been able to successfully extend the time period
during which it is allowed to drill exploration wells on each of EL 1120 and EL 1097R. Both of
these licences are offshore exploration licences located on the west coast of Newfoundland.
EL 1120
Shoal Point has signed an amending agreement with Ptarmigan Energy Inc. whereby the date by
which SPE must drill an exploration well on EL 1120 has been extended from December 31,
2012 to January 15, 2015. In consideration for this extension, Shoal Point has agreed to
immediately pay to Ptarmigan the balance of $300,000 which was due to Ptarmigan but
originally not payable until the spudding of a well on EL 1120. In addition, Shoal Point has
granted to Ptarmigan a warrant which entitles Ptarmigan to purchase up to 500,000 common
shares of Shoal Point at a price of $0.06 until January 15, 2015.
EL 1097R
Shoal Point has paid an additional $1 million refundable deposit to the CNLOPB to obtain an
extension of the term during which it is allowed to drill exploration wells on EL 1097R by one
year until January 15, 2014. The deposit previously put in place was forfeited by Shoal Point as
it did not drill an exploration well by January 15, 2013.
Future Exploration Plans
As stated in the press release issued on January 14, 2013, Shoal Point has executed a farmout
agreement with Black Spruce Exploration Corp. (“BSE”). Under the terms of the farmout
agreement, Black Spruce has the right to earn, through two phases of earning between 2013 and
2015, up to 60% of SPE’s working interest in its three Exploration Licences, EL 1070, EL 1120
and EL 1097R.
Page 1 of 3Black Spruce has indicated that it plans to drill up to four exploration wells in 2013 as part of its
Phase I Earning Program and this would include at least one well on each of EL 1120 and on EL
1097R in addition to the planned sidetrack from 3K-39 on EL 1070.
About Black Spruce Exploration Corp.
Black Spruce Exploration Corp., (“BSE”), with offices in Calgary, Alberta and Richmond Hill,
Ontario, is an exploration and production company with property rights, licenses and interests in
the province of Newfoundland. Black Spruce is a wholly-owned subsidiary of Foothills Capital
Corp. (www.foothillscapcorp.com).
As operator, Black Spruce Exploration has the mandate to determine the best methodology for
the extraction of hydrocarbons from an extensive oil-in-shale play on the west coast of
Newfoundland, ranging 180 kilometres from Port au Port Bay northward to just past the Parsons
Pond area. To achieve this objective, Black Spruce Exploration, under the direction of its board
of directors, and in conjunction with Shoal Point Energy, will determine the best strategy to
safely and effectively drill and develop these hydrocarbon energy reserves on the west coast of
Newfoundland.
Full details of the officers and directors of BSE will be provided on the BSE website at
www.blspexp.com which is expected to be fully updated by January 21, 2013.
About Shoal Point Energy Ltd.
Shoal Point Energy Ltd is a Canadian-listed public company (SHP:CNSX) with a large working
interest position in a regionally-extensive “tight” oil play within the Cambro-Ordovician Green
Point Formation (“Shale”) of western Newfoundland. The Green Point is an approximate
stratigraphic equivalent, within the northernmost Appalachians, of the well-known Utica
Formation currently under development in the United States. The company’s technical database,
in addition to third-party analysis, indicates that the Green Point contains a very large resource in
the oil window, and the Company has dedicated itself, in cooperation with its partners, to
bringing this resource to production over the next several years.
SPE’s current holdings in western Newfoundland consist of: (1) a 100% working interest in the
Green Point shale rights (“shallow rights”) in EL 1070, comprising approximately 150,000 acres
of prospective shale area, (2) a right to earn an 80% working interest in the “shallow rights”
within a nearshore portion of EL 1120, held by Ptarmigan Energy Inc., comprising
approximately 67,000 acres, and (3) a 100% working interest in all rights in EL 1097R,
comprising approximately 500,000 acres, for a total exposure of approximately 720,000 gross
acres to the Green Point “Shale” play.
futr
futrcash
12 years ago
January 14, 2013
SHOAL POINT ENERGY CONCLUDES DEFINITIVE FARMOUT AGREEMENT WITH BLACK SPRUCE EXPLORATION FOR ITS GREEN POINT SHALE LICENSES, WEST NEWFOUNDLAND
Toronto, Ontario: Shoal Point Energy Ltd. (“Shoal Point†“SPE†or the “Companyâ€) (SHPNF on OTCQX) (SHP on CNSX) has concluded a Farmout Agreement (“Agreementâ€) with Black Spruce Exploration Corp. (“BSEâ€), a subsidiary of Foothills Capital Corp. This Agreement follows a Letter of Intent between the two parties as announced on December 17, 2012. The Agreement contemplates the continued exploration and development of SPE’s approximately 720,000 gross acres of Green Point “oil-in-shale†rights in offshore west Newfoundland.
The terms of the Agreement allow for two phases of earning during 2013-2015 which give BSE the right to earn up to 60% of SPE’s working interests in its three Exploration Licenses (EL’s). Details of this earning program are presented below:
Phase I Earning Program (2013-2014):
BSE will drill one well on each of EL’s 1070, 1120, and 1097R.
• on EL 1070, the Shoal Point 3K39 well will by June 15, 2013 be re-entered and sidetracked from surface casing to drill, stimulate, complete and evaluate prospective oilbearing zones within the Green Point shale formation. Earning depth of the well will be 1800 metres below sea level;
• on EL 1120, a well will be drilled, stimulated, and completed to evaluate prospective oilbearing zones within the Green Point shale formation. Earning depth of the well will be 3000 metres below sea level;
• on EL 1097R, a well will be drilled, stimulated, and completed to evaluate prospective oil-bearing zones within the Green Point shale formation. Earning depth of the well will be 3000 metres below sea level;
Having met the conditions of the above program, BSE will earn a 40% interest in SPE’s working interest rights, that is, 40% of “shallow rights†in EL 1070, where SPE currently holds a 100% working interest, 40% of all rights in EL 1097R, where SPE currently holds a 100% working interest, and 32% of “shallow rights†in EL 1120, where SPE currently holds the right to earn an 80% working interest from Ptarmigan Energy Inc. by drilling a well to test the Green Point shale. (n.b. The definition of “shallow rights†includes all Green Point rights on these properties).
Optional Phase 1 Earning Well: Upon rig release at the third earning well above, BSE will have the right to elect, within a period of 60 days, to drill, stimulate, complete and evaluate a fourth well at a location of its choice, on either of the three EL’s noted above, to earn an additional 10% of SPE’s working interest in all three properties. Having so elected, BSE will be required to spud this well by April 30, 2014.
If all the conditions of Phase 1 Earning are met, then BSE will hold a 50% working interest in SPE’s rights in west Newfoundland (50% of “shallow rights†in EL 1070; 50% of all rights in EL 1097R, and 40% of “shallow rights†in EL 1120) at the conclusion of Phase 1 Earning.
Application for Significant Discovery Licenses: During Phase 1 earning, upon the successful testing and recovery of petroleum in an exploration well on a particular license, BSE and SPE (the “Partiesâ€) will cooperate to apply to the Canada-Newfoundland Offshore Petroleum Board for a Significant Discovery License (“SDLâ€) for that property, which when awarded will allow the parties to hold, develop and produce from the lands.Â
Phase II Earning Program (2014-2015):
Upon meeting all of the conditions of the above Phase I Earning Program, BSE will have the right to elect by July 31, 2014 to proceed to the Phase 2 Earning Program, whereby it can earn up to an additional 10% working interest in SPE’s interests, as defined at the close of Phase 1 above, by drilling up to eight (8) wells at locations of BSE’s choice across the three properties. The number and location of Phase 2 earning wells must be specified upon election. Having so elected, BSE will have to spud the first Phase 2 earning well by September 15, 2014.
Each Phase 2 earning well will consist of drilling, stimulation, completion and evaluation of the Green Point “oil-in-shale†formation, or equivalent units, to an earning depth of 3000 metres below sea level.Â
Upon conclusion of each Phase 2 Earning Well, BSE will earn an incremental 1.25% interest in all SPE’s working interest rights in western Newfoundland, up to a maximum of 10%. For example, if BSE concludes four of the eight earning wells, it will have earned an additional 5% of SPE’s interests, and so on.
If the maximium earning conditions of the Phase 1 Earning Program and Phase 2 Earning Program are met, BSE will have earned 60% of SPE’s interests in west Newfoundland, as described above.Â
All wells in Phases 1 and 2 are contemplated as sited at onshore locations and deviated to the offshore rights.Â
Operatorship
BSE will become the Licensed Operator of the wells once the appropriate regulatory approvals have been obtained and prior to the spudding of Phase 1 wells.Â
Seismic Program
The Parties will, on a best efforts basis and subject to the availability of a seismic vessel in western Newfoundland, jointly plan and shoot a 2D seismic program over EL 1097R and EL 1120 in 2013 or 2014. The program will consist of approximately 130 line kilometres of data, at an estimated cost of $1 million. BSE will be responsible for the first $1 million in associated expenditures, after which the Parties will share any additional expenditures according to their final working interests in the Farmout Lands once all earning operations are completed.Â
Area of Mutual Interest and Exclusion Area
The Agreement establishes an Area of Mutual Interest (AMI) which encompasses the existing Farmout Lands described above as well as an Area of Exclusion pertaining to other lands prospective for Green Point shale in western Newfoundland. The AMI provides a means for the Partners to cooperate fully in future exploration and development outside the Farmout Lands. All drilling, testing, completion, and seismic programs contemplated herein will be subject to approvals of the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Newfoundland and Labrador Department of Natural Resources.Â
Private Placement Financing
According to the terms of the Letter of Intent announced on December 18, 2012, an affiliated company of BSE has committed to subscribe for $2,100,000 of a private placement being completed by SPE. The SPE private placement for a total of $5,000,000 (this may be increased by up to 50%) is comprised of units at $0.06 per unit. The hard dollar units include a full warrant exercisable at $0.15 for eighteen months, while the flow-through units include a half-warrant exercisable at $0.15 for eighteen months.
To date, SPE has closed a total of 57,822,495 units for gross proceeds of $3,469,350. This financing includes $750,000 invested by an affiliate of BSE. The balance of this financing including the further contribution by the affiliate of BSE of $1,350,000 is scheduled to close on or before January 31, 2013.Â
About Black Spruce Exploration Corp.
Black Spruce Exploration Corp., (“BSEâ€), with offices in Calgary, Alberta and Richmond Hill, Ontario, is an exploration and production company with property rights, licenses and interests in the province of Newfoundland. A wholly-owned subsidiary of Foothills Capital Corp.  (www.foothillscapcorp.com), Black Spruce Exploration has signed, as of January 11, 2013, a farmin agreement with Shoal Point Energy Ltd.Â
As operator, Black Spruce Exploration has the mandate to determine the best methodology for the extraction of hydrocarbons from an extensive oil-in-shale play on the west coast of Newfoundland, ranging 180 kilometres from Port au Port Bay northward to just past the Parsons Pond area. To achieve this objective, Black Spruce Exploration, under the direction of its board of directors, and in conjunction with Shoal Point Energy, will determine the best strategy for this shale-oil development. It will also employ the investment capital it receives from Foothills Capital Corp. and its shareholders to execute its strategic plan.
Black Spruce Exploration Equipment is making arrangements with its affiliated companies to bring a drilling rig, drill pipe, casing pipe, tubing pipe, heavy picker truck, hauling trucks and a skidding unit, machine lathes and other field support equipment from various affiliates of Foothills Capital Corp. in order to ensure that Black Spruce Exploration has the necessary equipment to safely and effectively properly drill and develop hydrocarbon energy reserves on the west coast of Newfoundland.Â
The board of directors of Black Spruce Exploration Corp. has over 100 years combined experience directly or indirectly in the energy sector, engaging in transactions that have ranged from $1 million to over $1 billion in value. Board members have worked for or with junior companies or large international players such as Conwest Exploration Inc., Alberta Natural Gas, Bayridge Resources Limited, HESS Corporation, Burlington Resources, Gulf Oil, EnCana, Exxon, Helmrich & Payne, Nabors Drilling, CNRL, UPRI, British Petroleum America, Shell, Southwest Energy, Chesapeake Energy, Talisman and Statoil. Full details of the officers and directors of BSE will be provided on the BSE website at www.blspexp.com which is expected to be fully updated by January 21, 2013.
Foothills Capital, under TRP Holdings, Corp., presently operates in the Bakken shale-oil formation through its subsidiary entity Bakken ND Pipe & Supply, LLC, which is located in Ross, North Dakota. The officers and directors have worked in other oil and gas shale formation plays throughout the United States, as well as in conventional oil and gas fields in the United States and Canada.Â
About Shoal Point Energy Ltd.
Shoal Point Energy Ltd is a Canadian-listed public company (SHP:CNSX) with a large working interest position in a regionally-extensive “tight†oil play within the Cambro-Ordovician Green Point Formation (“Shaleâ€) of western Newfoundland. The Green Point is an approximate stratigraphic equivalent, within the northernmost Appalachians, of the well-known Utica Formation currently under development in the United States. The company’s technical database, in addition to third-party analysis, indicates that the Green Point contains a very large resource in the oil window, and the Company has dedicated itself, in cooperation with its partners, to bringing this resource to production over the next several years.
SPE’s current holdings in western Newfoundland consist of: (1) a 100% working interest in the Green Point shale rights (“shallow rightsâ€) in EL 1070, comprising approximately 150,000 acres of prospective shale area, (2) a right t o earn an 80% working interest in the “shallow rights†within a nearshore portion of EL 1120, held by Ptarmigan Energy Inc., comprising approximately 67,000 acres, and (3) a 100% working interest in all rights in EL 1097R, comprising approximately 500,000 acres, for a total exposure of approximately 720,000 gross acres to the Green Point “Shale†play.
Shoal Point currently has 330,531,959 common shares issued and outstanding.
Visit our website at www.shoalpointenergy.com
For further information, please contact:
David Black - 416-637-2181 ext 308
Hayley Clift - 416-637-2181 ext 306
Except for historical information contained herein, this news release contains forwardlooking statements that involve risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. The forward looking statements contained in this press release are made as of the date hereof and Shoal Point Energy Ltd. undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Â
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