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Green Point Oil-in-Shale

Green Point Oil-in-Shale, EL 1097R

*Land Acquisition*: Shoal Point Energy Ltd. and NWest Energy Corp. have entered into an agreement whereby Shoal Point Energy will acquire 100% working interest in all rights in EL 1097R, comprising approximately 500,000 acres, in the immediate offshore area of western Newfoundland. This license is contiguous with the EL 1120 and EL 1070.

Payment is to be made in three stages as follows:

-annual refundable drilling deposits of $1,000,000(to the regulatory body),

-an initial 2,000,000 shares and 2,000,000 warrants to acquire the 100& working interest

-an additional payment at the time of spudding a well on the property of 4,000,000 shares and 4,000,000
warrants, and the grant of a 2% gross overriding royalty,0.75% of which can be repurchased by Shoal Point

A well must be spudded on the license by January 15, 2014. The license covers the extent of the Green Point shale in the northern half of the western Newfoundland offshore area. It is expected that much of this licence area can be exploited from land.

The agreement will enable Shoal Point to increase its gross acreage position in the Green Point shale from 217,000 to approximately 720,000 acres

For more information on this agreement please refer to the Shoal Point News Release dated January 17, 2012 - Click Here