Shoal Point Energy has partnered with Shelby Resources to explore the Mount Evans prospect in Kansas. The primary target is the Pawnee Sandstone. Nine wells in the immediate vicinity have produced an average of more than 170,000 barrels of oil per well from a depth of approximately 4,000 feet.

Shelby Resources is a private company and has an impressive track record having drilled 230 wells since 1995 with an overall success rate of 70%. Under the terms of the agreement, Shoal Point can earn a 65% working interest of an 80% net revenue interest.

• Shoal Point to finance a 3D seismic shoot over approximately 5,700 acres
• Shoal Point to finance drilling the first well to casing point to a depth of approximately 4,700 feet or the bottom of the Arbuckle Formation

Completing and equipping the first well and all operations on subsequent wells will be paid for by Shoal Point proportionate to its 65% working interest. The Area of Mutual Interest is 121 square miles.

The Mt. Evans Prospect is defined by existing well control, wells vintage early sixties. No modern seismic has been shot. Several large undrilled prospective areas have been identified through surface and subsurface mapping. Each area could contain multiple structural features similar in size to the established production.

This play concept is a combination of structure and stratigraphy which can be identified using 3D seismic data. Based on historical production, each feature that is identified on seismic data could result in 2-5 wells per feature. Shelby Resources, LLC has acquired leases and is proposing approximately 12 square miles of seismic data.

Shoal Point Energy Ltd. is exploring the extensive Humber Arm oil-in-shale play, where SHP holds the rights to the exploration lands covering approximately 220,000 acres in the near offshore of the west coast of Newfoundland. Shoal Point believes it contains an undeveloped oil resource as large as any in North America.

Morningstar Consultants 51-101 Compliant Report March 31, 2014

6.5 billion barrels

Total Undiscovered Petroleum Initially in Place (PIIP) under SHP leases. Best (middle) case estimate

428 million barrels

Of this total, are considered prospective or potentially recoverable.

Morning Star Report

For about 150 years west Newfoundland has been home to sporadic exploration, based mainly on knowledge of the sedimentary basin and the existence of ubiquitous oil seeps. Most of these wells were very shallow and sited on seeps only, while 10 deep wells have been drilled since 1995. Historical production from seep-based drilling resulted in the production of approximately 50,000 barrels of light oil up to the middle of the 20th century. Shoal Point Energy has drilled two wells at Shoal Point since 2008 and the evaluation has led to further recognition of the Humber Arm oil-in-shale play as a potential major oil-producing area.

A major attraction is that the Humber Arm play can be developed almost entirely by land-based drilling in the early years of development. Also attractive is its location along an accessible coastline in northeastern North America, with highways, deep year-round ports, and an abundance of space for infrastructure development. The potential size of the resource has been identified and recognized, and the future endeavors of Shoal Point Energy will focus on the delineation, extraction and commercial development of the oil in this exciting new play.

Shoal Point Energy’s “Humber Arm” oil-in-shale play consists of two Exploration Licenses in the near offshore of western Newfoundland:

• A 100% working interest in the shallow rights of Exploration Licence (EL) 1070, comprising approximately 150,000 acres of the Humber Arm Allochthon.

• The right to earn an 80% working interest in 67,298 acre block of Humber Arm Shale in the adjoining EL 1120

View the Humber Arm Shale Summary presentation