Yes!
Shoal
Point Energy Ltd. has now run casing to a depth of 1,711 metres in the
3K-39 well and the casing is being cemented into place. Once this
operation is completed (expected to be in the next few days), the
current rig in use will be released and a service rig will be brought in
to complete the planned testing program.
The next stage of testing, subject to applicable regulatory approvals,
will include a test over the open lower carbonate-rich section of the
well to the total depth of 1,745 metres, from which promising
hydrocarbons were encountered during drilling and logging operations.
Thereafter it is planned to perforate the casing and test a series of
fractured shale zones (between 1,325 and 750 metres), which were
identified from log analysis and core data, and which, from a series of
open-hole closed chamber drill stem tests, indicate significant natural
permeability. These planned tests are expected to begin in mid-August
and take up to three weeks to complete.
At the same time, the company is waiting for the results of the core
analysis being undertaken by Ingrain Digital Rock Physics Lab in
Houston, Tex. These results are expected to complement the log analysis
carried out by NuTech Energy Alliance. In addition, discussions have
commenced with a major petroleum consulting company to prepare an
initial resource estimate and National Instrument 51-101 report.
Financing
Shoal Point also announces that it has closed the second tranche of a
financing of common share units for the purpose of completion and
testing well 3K-39 on EL 1070. The total amount raised from both
tranches of this financing is $2,035,250.
The first tranche of the financing for $535,500 comprised 1,785,000
common share units at 30 cents, where each unit includes a common share
at 30 cents and a one-half common share purchase warrant where a full
warrant entitles the holder to acquire an additional common share at a
price of 40 cents for 18 months. The second tranche of financing for
$1,499,750 included 4,285,000 flow-through units, where each unit
comprises a flow-through common share at 35 cents and a one-half common
share purchase warrant, where a full warrant entitles the holder to
acquire an additional common share at 40 cents for 18 months.
In connection with the total financing of $2,035,250, the company is
paying cash fees totalling $122,115 to registered agents and issuing
364,200 broker warrants. Each broker warrant will entitle the holder to
acquire an additional common share at a price of 30 cents for a period
of 18 months.
