Drilling of newest Shoal Point well expected to get underway in November

Shoal Point drilling site on the Port au Port Peninsula is seen in this file photo.

Steven Millan, chairman and chief executive officer of Canadian Imperial, said the planned 2,200-metre test is a followup to the 2008 discovery of an about 500-metre thick oil-bearing section in the Green Point shale formation of the 2K-39 well. While drilling this section the formation produced about 54 barrels of oil in the well bore, indicating the Green Point shale formation is capable of producing even without being subjected to stimulation techniques that are usual in shale reservoirs.

The 2K-39 well, like all other modern wells in western Newfoundland, was not designed for evaluation of the Green Point shale unit and due to hole conditions, it was impossible to test the section.

The new well will twin the discovery well through the Green Point section and is specifically designed for its evaluation.

Meanwhile, Canadian Imperial and partner Shoal Point Energy have reached an agreement with McLaren Resources Ltd. to let it acquire working interests on the Green Point EL 1070 lands.

Dragon Lance has committed to spending $6.5 million on the drilling of the 3K-39 well and all activities related to obtaining a significant discovery licence on EL 1070. The award of a significant discovery licence by the Canada Newfoundland and Labrador Offshore Petroleum Board preserves the lands into perpetuity.

“The new deal with McLaren simplifies the situation and provides a more workable scenario for all partners in the Green Point oil-in-shale discovery,” Millan said.”

http://www.thewesternstar.com/Business/Natural-resources/2010-10-07/article-1827272/Drilling-of-newest-Shoal-Point-well-expected-to-get-underway-in-November/1