In 2008, the interest holders of EL1070 drilled the 2K-39Z to test the Shoal Point prospect. Although the well did not yield a discovery we believe it was not drilled far enough to cross into the footwall of the Round Head Thrust, where the reservoir is located.
In addition, during the drill and before target depths were reached, the presence of hydrocarbons was detected in the Humber Arm Allochthon, specifically in the Green Point Shale formation.
Nu-Oil's Canadian subsidiary, Enegi Oil Inc., is registered holder of 33% of EL1070, however, through an agreement with Shoal Point Energy, one of the partners in the drilling of the 2K-39Z well, Enegi Oil Inc. holds 100% interest in the Deep Rights.
The Deep Rights on EL1070 are defined as all petroleum substances and associated rights within and stratigraphically below the Ordovician Carbonate Platform (excluding Cape Cormorant and Table Cove Formations). The main target within the EL1070 Deep Rights is the Shoal Point prospect, which is a ‘conventional’ exploration target, and is reachable from an onshore location.
Shoal Point Energy hold 100% of the Shallow Rights on the licence which includes the Green Point Shale formation.
EL1070 was issued in January 2002 and continues to be in good standing beyond its 9 year exploration phase, while partners in the project diligently pursue the award of an SDL for discoveries within the Shallow Rights section. In order to pursue Shallow Rights hydrocarbons in the Green Point shale fracking might be necessary, for which there is currently a moratorium in Newfoundland.