Shoal Point Energy Ltd.

Shoal Point Energy Ltd. is a petroleum exploration and development company with offices in St. John’s NL, Toronto Ont. and Vancouver, BC.

We are dedicated to exploration and development of the oil rich shales of the Humber Arm Allochthon, which we believe contains an undeveloped oil resource as large as any in North America.

Shoal Point Rights Offering in Plain English

It has come to our attention that many shareholders and even some brokerage firms are having trouble understanding the mechanics of the rights offering currently underway. Part of the confusion is caused by the fact that we were conducting a 1 for 25 share consolidation at the same time the rights offering commenced, and part is caused by the fact that rights offerings are not common in Canada.

Now that the Shoal Point shares are trading on a post-consolidated basis, here is the deal:

Every post-consolidated share that you owned on January 26, 2018 gives you the right (but not the obligation) to buy another share for a price of $0.05. You may elect to exercise all your rights, some of your rights, or none of your rights.

If you exercise all your rights, you also have the right to subscribe for an Additional Subscription Privilege. You may subscribe for any amount, so long as there is money to back up your subscription. When the rights offering closes, the transfer agent will count how many rights went unexercised and then allot those unexercised rights proportionally to those subscribing under the Additional Subscription Privilege. You may end up buying all that you subscribed for, or you may end up with only a portion of what you subscribed for, in which case the leftover cash will be returned to you.

If your shares are held in a brokerage account:

Simply tell your broker what you want to do, and they will handle the details.

If you hold registered shares:

You will receive all the necessary forms in the mail. If you do nothing, you will not participate in the rights offering. If you wish to exercise all or some of your rights, fill out the appropriate form and return it to Computershare along with a certified cheque or money order. If you exercise all your rights and wish to subscribe for the Additional Subscription Privilege, fill out the appropriate form and return it to Computershare along with a certified check or money order.

The documentation that registered shareholders receive will be on a pre-consolidation basis (which is where some of the confusion comes in). You will see that, for every pre-consolidated share you owned on January 26, 2018, you have the right to buy a pre-consolidated share for a price of $0.002. Those shares will then be consolidated 1 for 25.

For more details, please refer to the Rights Offering Documents

Remember, the rights offering will close on March 7, 2018, so if you wish to participate, ensure that you instruct your broker before that date. If you hold registered shares and wish to participate, ensure that the appropriate forms and money are received by Computershare before that date. After March 7, your rights will expire.

Why Shoal Point?

  • Morningstar Consultants 51-101 compliant report has a best (middle) case estimate of 6.5 billion barrels of total undiscovered Petroleum Initially in Place (PIIP) under SHP leases.
  • Of this total, 428 million barrels, is considered prospective or potentially recoverable.
  • Canadian jurisdiction with access to deep sea ports, close proximity to one of the largest oil markets in the world, and access to premium international pricing for the oil.
Cautionary Statement

This website refers to an NI 51-101 compliant resource study with an effective date of March 31, 2014 by Morning Star Consultants. (view report here) which summarizes 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.

Review Panel Submission

The link below leads to Shoal Point Energy’s cover letter to the Review Panel. At the end of the cover letter are links to other submissions by Shoal Point to the Panel, including letters, articles, and peer-reviewed scientific papers.

Submissions to Newfoundland and Labrador Hydraulic Fracturing Review Panel

Final report from the Newfoundland and Labrador Hydraulic Fracturing Review Panel