Shoal Point Energy Ltd.

Shoal Point Energy Ltd.

March 03, 2011 17:13 ET

Shoal Point Closes Additional Financing For $2,386,150 and Provides Update on Offshore Drilling on EL 1070

TORONTO, ONTARIO--(Marketwire - March 3, 2011) - Shoal Point Energy Ltd. ("Shoal Point") (CNSX:SHP) announces that it has closed the second tranche of a financing of common share units for the purpose of continuing exploration on EL 1070, for the acquisition of an interest in EL 1120, as previously announced by press release on February 10, 2011, and for general working capital purposes. The total amount raised from both tranches of this financing is $5,956,150.

This financing for $2,386,150 was comprised of 3,213,570 common share units at $0.35 where each unit includes a common share at $0.35 and a ½ common share purchase warrant where a full warrant entitles the holder to acquire an additional common share at a price of $0.50 for 18 months. The balance of this tranche of financing included 3,150,000 flow through units where each unit is comprised of a flow through common share at $0.40 and a ½ common share purchase warrant where a full warrant entitles the holder to acquire an additional common share at $0.55 for 18 months.

In connection with the total financing of $5,956,150, the Company is paying cash fees totalling $144,669 to registered agents and issuing 386,554 broker warrants. Each broker warrant will entitle the holder to acquire an additional common share at a price of $0.35 for a period of 18 months.

Operations Update:

Shoal Point advises that the 3K-39 well is drilling toward core point #3 at 1,235 metres. The Company's drilling plan calls for six cored intervals representative of the entire Green Point shale thickness which lies between approximately 600 metres and 1850 metres measured depth. Each coring operation will attempt to recover two consecutive 9 metre cores for a total of 18 metres per interval. Core data will form the cornerstone of our evaluation of this oil-in-shale resource play and it will allow our technical specialists to calibrate logs to real rock data. This will further provide updated and more precise oil-in-place resource estimates for EL 1070. After total depth is reached, the operation will culminate in a comprehensive logging, testing and completion program.

About Shoal Point Energy Ltd.

Shoal Point Energy Ltd is a public company earning an 80.75% interest in Exploration Licence #1070 in the Province of Newfoundland comprising approximately 148,000 acres of oil-in-shale. In addition, as disclosed in a press release dated February 10, 2011, Shoal Point has signed a letter of intent to earn an 80% interest in the Green Point Shale (shallow rights) of EL 1120 which is owned by Ptarmigan Energy Corp. The agreement with Ptarmigan is subject to a final definitive agreement which is currently being prepared.

Shoal Point Energy Ltd.'s partner in EL 1070 is Canadian Imperial Venture Corp. ("CIVC") (CQV.V on TSX Venture) as to 19.25%. In addition, CIVC has the right to participate in EL 1120 for up to 40% of Shoal Point's interest pursuant to an agreement regarding Areas of Mutual Interest.

Finally, Shoal Point has a 6 - 14% interest in a gas prospect in the Province of New Brunswick.

Shoal Point currently has 159,826,637 common shares issued and outstanding.

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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.

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