Shoal Point Energy Ltd. (SHPNF)

[74stingray]

More local bad news for Shoal Point Energy Ltd.

I bet they won't be updating shareholders on this bit of news, we have to do our own digging to find out what they are up to or not up to.

http://www.vocm.com/newsarticle.asp?mn=2&id=41605&latest=1

The offshore petroleum board says it considered and rejected three separate proposals from Shoal Point Energy to extend an exploration license on the west coast. The company is looking to extract oil using hydraulic fracturing at a number of locations from the Port au Port Peninsula to Gros Morne. In a release late last night the company said a decision by the C-NLOPB was costing them the largest and greatest potential for recoverable oil, along with the one million dollars it cost to apply for the extension. VOCM's Danielle Barron reports.



In a statement the C-NLOPB says the board considered that the license was issued based on conventional exploration work. The board says nearly eight years after the initial license was issued, minimal exploration has been undertaken. The C-NLOPB says the proposal by Shoal Point didn't identify a plan to proceed with activity to fulfil the drilling obligations, but instead identified 'a physical and legal impossibility to undertake a drilling program'. Because the company didn't meet the requirements of its last license extension, the board says it chose not to exercise its discretion to allow for another extension.

Effective Jan. 15, the company's total exploration acreage will be reduced from approximately 720,000 acres to just 220,000 acres. Prospective oil resources will be reduced from over 956-million barrels on three licenses to 202-million barrels with two licenses.