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Exploration Licence 1070

Exploration licence EL1070 confers rights to explore for petroleum in a 1,030km² area offshore the Port au Port Peninsula, Western Newfoundland.  The licence was issued on the 15th January 2002 to Canadian Imperial Venture Corporation (CIVC) for a total licence period of 9 years.  The licence remains in force until the merits of a significant discovery licence can be determined from the currently drilled well.

Appraisal

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.

Interest

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. 

Licence Status

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. 

Photos from Shoal Point

Shoal Point

Timeline

2016

Option Agreement entered into with G2 Energy Corp. ('G2').

Under the agreement G2 have an exclusive option to earn 100% of Enegi Oil Inc.'s working interest in the Deep Rights of the licence.  

Should the option be exercised within the 24 month period, Enegi Oil Inc. will retain a 5% gross overriding royalty in the Deep Rights.  

2011

CIVC and SPE announce that operations begun on the Shoal Point 3K-39 well in EL1070.

2010

In August 2010 PDIP entered into a farm-out agreement with Dragon Lance Management Corporation on Shoal Point.  Farm-in partner was due to commence a seismic programme that would cover the prospective areas of EL1070 and drill a new well to test the productivity of the Aguathuna Formation located offshore, which contains the conventional Shoal Point prospect. 

Farm-in partner assumed 100% of the total cost, risk and expense associated with the seismic programme and the drilling of the new well in return for a 70% interest in EL1070.

2009

PDIP entered into an interest swap agreement with CIVC and SPE on EL1070.  Under the agreement, PDIP acquired a 100% interest in the more conventional St. George’s Group play in exchange for its interest in the less conventional, shallower shale play, which was acquired by CIVC and SPE.

2008

SPE drilled the 2K-39Z well to test the Shoal Point prospect.

2006

PDIP (subsequently renamed Enegi Oil Inc.) acquired a 60% interest in EL1070. 

PDIP farmed-out 28% of its 60% share to Shoal Point Energy Ltd. (SPE), in return for SPE paying 42.5% of the costs of drilling the well.

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