RE: NEWS From the news release...
Shoal Point is pleased to announce that operations at the DLMC Shoal Point 3K-39z well are continuing, and that the side-tracked well is expected to reach a measured depth of approximately 1,800 metres over the next few days, after which the borehole will be logged, and a open hole test will be run over the entire approximately 190 metre open hole section below the whipstock. Thereafter, the hole will be drilled to final total depth.
Well it looks like they will be doing the open hole test that I've been expecting to hear about from the original hole after all. The depth they're drilling to before completing this, 2nd open hole test at this depth IMO, is 1800m. The original 3K-39 borehole was drilled to 1745m so they're drilling through identical parts of the formation.
IMO they completed an open hole test in the original hole last year and have successfully used the results from that test to attract additional PP $. This time the open hole test is to help sell the shares issued on previous PP's so the early investors can recover some of their capital. There is a scratch-my-back and I'll scratch yours thing going on. As long as new PP investors believe that management is running things to allow recovery of their initial investment early on they will continue to be successful raising money for continued drilling operations... and that's a good thing. They're doing a good job at this and as frustrating as it is believing that they're holding back information we should understand that this is being done to facilitate contiinued funding of the project.
I think they will have extremely good news to report when they do their cased hole test since I believe they already know what they will find! IMO of course and time will tell.
The release also states that SPE...
is also earning a 100% working interest in in all rights in EL 1079R with a 2% gross overriding interest.
As you will recall the terms of the agreement with NWN were that they originally got a 50% interest in EL 1097R but they would not get the remaining 50% interest until NWN shareholders approved the 2nd stage of the deal. SPE is claiming that they have 100% of the rights to EL 1097R so NWN shareholders must have approved the deal and they got their extra SPE shares.
I'm expecting the market to recognize the significance of today's news very soon... tomorrow if the market is generally green.
All aboard!!!!!