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Projects
Western Newfoundland
Map of Western Newfoundland Project
Shoal Point and Lourdes (Exploration License 1070)Introduction and Recent Exploration History
Light, sweet crude oil was discovered in 1995 on the western Port au Port Peninsula in the PCP/Hunt Port au Port #1 well, which flowed 51-degree API oil at instantaneous rates over 2400 BPD. The project was eventually taken over by Canadian Imperial Venture Corp. (CIVC) which re-tested the well in 2001. Over 24,000 barrels of oil have been produced from the well, but due to extensive formation damage within the borehole it has not been put into production. The Port au Port #1-Sidetrack 2 well recently produced at approximately 300 BOPD and 1 MMCFD before being shut in for mechanical reasons. The entire regional west Newfoundland play has been estimated by government and industry sources to have the potential to yield in the range of 2 to 4 billion barrels of light oil.
The Shoal Point K-39 well, 35 km northeast of the Port au Port #1 discovery, was drilled in 1999 from a surface location onshore Shoal Point and deviated to test a large offshore structure. Because of sparse 2-D seismic coverage in the shallow water immediately offshore, there was some uncertainty as to the exact shape of the fault-bound structural trap prior to drilling. Recent auditing, reprocessing and reinterpretation of seismic data in the area leads to the conclusion that the K-39 well did not test the prospective structure.
Geology
The oil is contained in highly karsted and dolomitized platform carbonates of the Middle Ordovician St. George Group, which is the northern Appalachian equivalent of a highly productive trend extending from the Ellenburger in Texas to the very active Trenton-Black River play currently being exploited in New York State and the St. Lawrence Lowlands.
A strong regional trend of reservoir and trap development occurs in the footwall of a major fault system known as the Round Head Thrust, which trends along the western Port au Port Peninsula and swings northeastward at Port au Port Bay to form a complex extensional structure offshore. This footwall trend is an important predictor of reservoir and trap development because, prior to Appalachian deformation, it formed the high shoulders of rotated, down-to-the-east extensional fault blocks that were the loci of the early and critical karsting (cave development) and shallow dolomitization; this process formed conduits for later porosity enhancement by hydrothermal fluids. The footwall trend can be mapped continuously on seismic from the Port au Port #1 discovery northward to Garden Hill North and offshore to where it forms a high target at the Shoal Point structure.
Land tenure
The Shoal Point prospect lies on CNOPB Exploration License 1070 which is jointly held by Canadian Imperial Venture Corp.(40%) and PDI Production (60%). The License has recently been extended by one year to an expiry date of January 15, 2008.
Farmin and Exploration Program
In May 2007, Shoal Point Energy signed a farmin agreement with Canadian Imperial Venture Corp. covering the Shoal Point prospect, whereby Shoal Point Energy would perform the following:
(1) pay 40% of the cost of a well to the upper platform target to earn a 28% working interest in the Shoal Point structure. This well may be drilled by sidetracking out of the PCP K-39 well or drilling a new deviated hole from the original surface location.
(2) pay certain prospect fees and costs incurred by current stakeholders in maintaining the prospects and lands in good standing,
(3) earn the right to participate in a seismic program and well to test and earn into the nearby onshore Garden Hill North structure, under the same terms as the Shoal Point deal. The earned area would include approximately the northern half of Production Lease 2002-01, onshore the Port au Port Peninsula.
Also in May 2007 Shoal Point Energy signed a farmin agreement with PDI Production Inc covering the Shoal Point prospect whereby Shoal Point Energy would perform the following:
(1) pay 42.5% of the cost of a well to the upper platform target to earn a 28% working interest in the Shoal Point structure. This well may be drilled by sidetracking out of the PCP K-39 well or drilling a new deviated hole from the original surface location.
These farmin agreements give Shoal Point Energy a 56% interest in the Shoal Point prospect and we will be the operator of Exploration License 1070.
Potential Reserves and Upside - coming soon
Map of South Stoney Creek Project
South Stoney Creek ProspectIntroduction and Recent Exploration History
Shoal Point Energy Ltd. farmin to Contact Exploration Inc.:
South Stoney Creek, New Brunswick, CanadaShoal Point Energy has signed a farmin agreement with Contact Exploration Inc. of Calgary, Alberta, regarding the South Stoney Creek exploration lands, which lie approximately 20 km south of Moncton, NB. This area is situated just south of the historical Stoney Creek field, which has 20 mmbo in place, and produced over 30 BCF between 1910 and 1980, and also lies along trend 50 km northeast of the Corridor McCully field development, which has an estimated 1 TCF gas in place (see basin map). The McCully field is scheduled to tie in to the regional Maritimes and Norheast Pipeline in late 2007, which transmits gas from Sable Island to New England (see infrastructure map). The South Stoney Project also lies 25 km southwest of this pipeline. Initial gas (up to 5 MMCFD) will be delivered to Moncton, which presently is taking gas off the N&NE line.
Shoal Point will pay a $2 million prospect fee and commit to pay 40% of a 2-well drilling program to earn 40% in 35,000 contiguous acres. Over the last five years, Contact has invested significant time and funds in exploration and development in the area. The prospectivity of the farmin lands has been well established by recent oil and gas discoveries as well as a new 2D seismic survey acquired by Contact in 2005. This data is of excellent quality. In 1998, the MariCo Downey #1 well found potentially commercial quantities of gas in the Albert Formation III/IV sands (Hiram Brook Member), which flow tested while drilling up to 2 MMCFD. It is very significant that this is also the productive zone in the McCully field. Shoal Point will earn 40% of this borehole, which will be re-entered once a coiled tubing unit becomes available.
With the acquisition of a 3D seismic survey over Stoney Creek, followed by the 2D seismic survey over the South Stoney lands, and integration of all subsurface and surface geological data, Contact has generated an integrated exploration model and a number of additional prospects updip from the Downey-Bull Creek discoveries. The first two wells, Shenstone #1 and Surrey #1, will target the productive Albert sands at depths in the range of 1800 – 2100m, and are expected to cost in the range of $2 million each. The first well is expected to spud on or about July 15, 2007, with the second spudding in September or October, 2007.
In summary, the combination of new and very high quality 3D and 2D seismic data, a fully integrated geological and exploration model, newly developed access to gas markets, and a competitive regulatory regime make the Moncton Subbasin of New Brunswick in general, and the South Stoney Creek area in particular, one of the hottest new natural gas plays in North America.
Geology
Land tenure
Potential Reserves and Upside - coming soon
Future Projects -
Shoal Point Energy Ltd. is currently negotiating other high impact projects.
