Shoal Point Energy Ltd. (SHPNF)

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The last update was Aug.16-

August 16, 2012 For Immediate Distribution
CNSX: SHP
Shoal Point Announces Plans to Drill and Stimulate a Sidetrack
on Well 3K-39 and Plans for 2 Additional Wells in 2013
Toronto, ON: Shoal Point Energy Ltd. (the “Company” or “Shoal Point”) (SHP on CNSX)
announces that it is proceeding with plans to drill a sidetrack from well Shoal Point 3K-39,
commencing at a depth of approximately 500 metres, on its EL 1070 property in western
Newfoundland. Designated 3K39Y, the sidetrack is planned to reach a true vertical depth of
1500 metres, and is projected to bottom in the Green Point shale formation, approximately 800
metres south of the 3K39 bottomhole location. The large-diameter sidetrack well will be deviated
at a significantly lower angle than previous wells, in order to minimize drilling, logging and
testing concerns in the fractured shales, which were challenges encountered previously in the
3K39 borehole. The new well is expected to test the hydrocarbon reservoir potential under more
favourable (undamaged) conditions.
The Company has recently met with the Regulatory Authorities that have confirmed that the
Company may include hydraulic fracturing as a method of stimulation of the Green Point Shale
formation. This method of stimulation, subject to regulatory approval, will be included as part of
the continuation of the drilling and testing program at the Shoal Point 3K39 well site
In addition, the Company continues its planning of two wells to be drilled in 2013 on its
adjoining lands. The first well proposed at Bottle Cove (town of Littleport) will be deviated
slightly offshore and will drill to an estimated vertical depth of 2350 metres. This well will be the
first test of the Green Point shale on EL 1120, and will earn Shoal Point an 80% working interest
in a 67,298 acre portion of the license, as reported earlier.
The second onshore-to-offshore well is being planned for the town of Sally’s Cove to test the
Green Point shale formation on EL 1097R, where the Company holds a 100% working interest in
roughly 502,000 acres.
Drilling operations will be followed by stimulation and testing operations, subject to regulatory
approvals. The Company plans to optimize the mobilization of drilling, stimulation and testing
equipment to allow maximum cost efficiency by drilling and testing multiple wells during the
same program.
Suite 501, 65 Queen Street West
Toronto, ON M5H 2M5
All operations described herein are subject to final approvals from the regulatory authority.
Joint Venture Data Room
The Company has established a physical Data Room in Calgary, Alberta, Canada to facilitate the
identification of a Joint Venture partner(s) for its west Newfoundland operations. The room will
make available to interested parties all the Company’s proprietary technical and other
commercial data collected during its recent drilling campaigns, in both hard-copy and virtual
forms, and will include work-station capability for related seismic data.
About Shoal Point Energy Ltd.
Shoal Point Energy Ltd is a public company with a 100% interest in the shallow rights of
Exploration Licence 1070 in the Province of Newfoundland comprising approximately 150,000
acres of oil-in-shale. In addition, Shoal Point has an agreement to earn a net 80% interest in the
67,298 acres of Green Point Shale (shallow rights) of EL 1120 which is owned by Ptarmigan
Energy Corp. It also has a 100% working interest in the 502,000 acres in EL 1097R, subject to a
2% gross overriding royalty. The total potential gross acreage in the Green Point Shale is
approximately 720,000 acres.
Shoal Point currently has 272,709,463 Common Shares issued and outstanding.
Visit our website at www.shoalpointenergy.com
View Shoal Point Energy’s recent management interviews at:
www.shoalpointenergy.com/media.php
For further information, please contact:
David Black - 416-637-2181 ext 308
Hayley Clift - 416-637-2181 ext 306

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