BSE and FNW intend to enter into Definitive Agreements with SPE on or before January 11, 2013, subject to respective corporate and regulatory approvals, whereby (1) FNW will participate in a private placement for a minimum of 35 million units $0.06 (representing a minimum $2.1 million investment, and comprised of common shares and a common share purchase warrant exercisable for 18 months $0.15), and whereby (2) BSE will execute a farmin agreement giving it the right to earn up to a 60% interest of SPE’s interests in three (3) Exploration Licenses (“EL’s”) offshore western Newfoundland. The earn in will occur by a staged work program whereby BSE can earn incremental components of interest by drilling on SPE’s lands. All wells are contemplated as onshore-to-offshore deviated drill programs, and will be designed to reach depths of up to 3000 metres. BSE will be the Operator of the four wells.
The drilling, testing and completion programs contemplated herein will be subject to approvals of the Canada-Newfoundland Offshore Petroleum Board.
The principals, as a combined group, have worked in the energy sector directly or indirectly for more than 50 years, engaging in transactions that range from $1 million to more than $200 million in value. Foothills Capital, under TRP Holdings, Corp., presently operates in the Bakken shale-oil formation through its subsidiary entity Bakken ND Pipe & Supply, LLC, which is located in Ross, North Dakota.
SPE’s current holdings in western Newfoundland consist of: (1) a 100% working interest in the Green Point shale rights (“shallow rights”) in EL 1070, comprising approximately 150,000 acres of prospective shale area, (2) a right to earn an 80% working interest in the “shallow rights” within a nearshore portion of EL 1120, held by Ptarmigan Energy Inc., comprising approximately 67,000 acres, and (3) a 100% working interest in all rights in EL 1097R, comprising approximately 500,000 acres, for a total exposure of approximately 720,000 gross acres to the Green Point “Shale” play.
Shoal Point currently has 302,511,792 common shares issued and outstanding.