Exploration licence EL1070 confers rights to explore for petroleum in an offshore area off 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.
In 2008, one of the interest holders of EL1070, Shoal Point Energy, drilled the 2K-39-Z to test the Shoal Point prospect. The 2K-39-Z well did not yield a discovery, but we believe that the well 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.
2006 - PDI Production Inc (PDIP) 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
2008 - SPE drilled the 2K-39-Z well to test the Shoal Point prospect
2009 - In November 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
2010 - In Auguat 2010 PDIP agreed to enter into a farm-out agreement on Shoal Point. The farm-in partner will commence a seismic programme that will cover the prospective areas of EL1070 and drill a new well to test the productivity of the Aguathuna Formation located offshore. This contains the conventional Shoal Point prospect. The farm-in partner will assume 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.
2011 - CIVC and SPE announced that operations had begun on the Shoal Point 3K-39 well in EL1070.
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