News Release
Shoal Point Closes Additional Financing
For $2,386,150
And Provides Update on Offshore Drilling on EL 1070
Toronto, ON: Shoal Point Energy Ltd. (“Shoal Point”) (SHP on CNSX) announces that it has
closed the second tranche of a financing of common share units for the purpose of continuing
exploration on EL 1070, for the acquisition of an interest in EL 1120, as previously announced
by press release on February 10, 2011, and for general working capital purposes. The total
amount raised from both tranches of this financing is $5,956,150.
This financing for $2,386,150 was comprised of 3,213,570 common share units at
.35 where
each unit includes a common share at
.35 and a ½ common share purchase warrant where a
full warrant entitles the holder to acquire an additional common share at a price of
.50 for 18
months. The balance of this tranche of financing included 3,150,000 flow through units where
each unit is comprised of a flow through common share at
.40 and a ½ common share
purchase warrant where a full warrant entitles the holder to acquire an additional common share
at
.55 for 18 months.
In connection with the total financing of $5,956,150, the Company is paying cash fees totalling
$144,669 to registered agents and issuing 386,554 broker warrants. Each broker warrant will
entitle the holder to acquire an additional common share at a price of
.35 for a period of 18
months.
Operations Update:
Shoal Point advises that the 3K-39 well is drilling toward core point #3 at 1,235 metres.. The
Company’s drilling plan calls for six cored intervals representative of the entire Green Point
shale thickness which lies between approximately 600 metres and 1850 metres measured depth.
Each coring operation will attempt to recover two consecutive 9 metre cores for a total of 18
metres per interval. Core data will form the cornerstone of our evaluation of this oil-in-shale
resource play and it will allow our technical specialists to calibrate logs to real rock data. This
will further provide updated and more precise oil-in-place resource estimates for EL1070. After
total depth is reached, the operation will culminate in a comprehensive logging, testing and
completion program.