Shoal Point Energy Ltd.

Shoal Point Energy Ltd.

December 20, 2010 16:30 ET

Shoal Point Energy Ltd. Announces Interest in EL 1070 to Increase to 80.75% as a Result of Further Amendment to Farm-Out Agreement

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2010) - Shoal Point Energy Ltd. ("Shoal Point") (CNSX:SHP) announces that as a result of the additional funds it has raised, it has now negotiated further changes to the farm-out agreement originally signed on August 11, 2010 and then amended on December 6, 2010.

Under the terms of the agreement as amended, Shoal Point is now assuming responsibility for all of the budgeted costs of the new well, 3K-39, which the Company expects to commence drilling around the year end. The budgeted cost of the new well is $4.5 million and Shoal Point will also be responsible for the abandonment deposit and other costs related to filing the application for an SDL (significant discovery licence).

The Partners in EL 1070 are now Shoal Point Energy Ltd. and Canadian Imperial Venture Corp. ("CIVC") (CQV.V).

After the completion of well 3K- 39, the interests in EL 1070 will be as follows:

Shoal Point 80.75%
CIVC 19.25%

In the event that the costs of the well 3K-39 exceed the budget, each partner will be responsible for their pro-rata share of the excess costs.

About Shoal Point Energy Ltd.

Shoal Point Energy Ltd is a public company with an interest in Exploration Licence #1070 in the Province of Newfoundland comprising approximately 137,000 acres of oil-in-shale. In addition, Shoal has a 14% interest in a gas prospect in the Province of New Brunswick. Shoal Point currently has 128,325,428 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.

Contact Information

  • Shoal Point Energy Ltd.
    George Langdon
    Shoal Point Energy Ltd.
    R. Brian Murray