December 13, 2013
Statement to the Media
The C-NLOPB considered and rejected three separate proposals from Shoal Point Energy (SPE) for a one year extension to Exploration Licence 1097R. The most recent decision by the Board was communicated to the company on December 12.
In making this decision, the Board considered that this licence was issued based on conventional exploration work. Nearly eight years of Period I has passed and minimal exploration has been undertaken. The proposal submitted by SPE does not identify a plan to proceed with activity to fulfil the drilling obligation on the licence and instead identifies "a physical and legal impossibility to undertake a drilling program" in the only format now contemplated.
The proposal to amend the licence did not incorporate a forfeiture of drilling deposit for not meeting the obligations of the licence to date; forfeiture of drilling deposit is consistently required where extension is agreed on a contractual or special consideration basis and was required in the last (and final) licence extension provision in the terms of EL 1097R.
Based on these facts, the Board has chosen to not exercise its discretion to amend EL 1097R to allow another extension to Period I.
Sean Kelly M.A., APR, FCPRS
Manager of Public Relations
(709) 689-0713 (cell)
November 18, 2013
Based on the C-NLOPBís interpretation of the data, the Board is updating its reserve/resource table with the addition of Ballicatters in the resource section. A deterministic gas volume was estimated to be 32,390 106 m3 (1143 BCF) with 21 MM bbls NGLs.
The Ballicatters M-96Z well tested a 23 meter interval and flowed oil and gas at sustained rates of 698 b/d (43 deg API) and 38.6 MMScf/d respectively on a 60/64th inch choke during a 27 hour flow period and associated 39 hour shut-in period.