Shoal Point Energy Ltd. is exploring the extensive Humber Arm oil-in-shale play, where SHP holds the rights to the exploration lands covering approximately 220,000 acres in the near offshore of the west coast of Newfoundland. Shoal Point believes it contains an undeveloped oil resource as large as any in North America.
Morningstar Consultants 51-101 Compliant Report March 31, 2014:
Total Undiscovered Petroleum Initially in Place (PIIP) under SHP leases. Best (middle) case estimate:
6.5 billion barrels
Of this total, are considered prospective or potentially recoverable:
428 million barrels
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For about 150 years west Newfoundland has been home to sporadic exploration, based mainly on knowledge of the sedimentary basin and the existence of ubiquitous oil seeps. Most of these wells were very shallow and sited on seeps only, while 10 deep wells have been drilled since 1995. Historical production from seep-based drilling resulted in the production of approximately 50,000 barrels of light oil up to the middle of the 20th century. Shoal Point Energy has drilled two wells at Shoal Point since 2008 and the evaluation has led to further recognition of the Humber Arm oil-in-shale play as a potential major oil-producing area.
The NI 51-101 compliant resource study completed by Morning Star Consultants has an effective date of March 31, 2014 and summarizes the estimates of Petroleum Initially in Place (PIIP).
Readers are cautioned that the estimate of remaining recoverable resources (un-risked) includes prospective resources that have not been adjusted for risk based on the chance of discovery or chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development. Actual recovery is likely to be less and may be substantially less or zero.
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