Exploration License 1070 was issued on 15th January 2002 to Canadian Imperial Venture Corporation (CIVC, 100%), for a total license period of 9 years. The license has an initial period of 5 years, during which the owner must drill one exploration well in order to continue to the second (4 year) period. License rental fees are applicable in the second period at the rate of C$250 per km2 in the first year, rising to C$500 per km2 in the second year, and C$750 per km2 thereafter.
The first license period was to expire on 15th January 2007. No wells had been drilled by the licensees on the block by that date but, on 22nd September 2006, CIVC announced that the Canada-Newfoundland and Labrador Offshore Petroleum Board (“CNLOPB”) had approved a twelve (12) month extension to Exploration Licence 1070. The extension required a drilling deposit of $250,000 to be provided to the CNLOPB prior to January 15, 2007, upon which, Period 1 of the Licence was extended for twelve (12) months to January 15, 2008. This was extended by a further 60 days, to March 17, 2008, by the C-NLOPB in early January 2008 and again by a further 120 days to July 15, 2008 in March of that year.
In 2006, CIVC farmed out 60% of its interests to PDI Production Inc (PDIP). Following PDIP’s earn-in to the lease and license, PDIP farmed-out 28% of its 60% share of Shoal Point to SPE, in return for SPE paying 42.5% of the costs of drilling the well. If SPE executes its farm-in, PDIP will own a 32% interest in the Shoal Point prospect.
EL1070 contains two significant prospects:
- Shoal Point
- Lourdes
| Lease/License | PDIP Interest * | Area |
|---|---|---|
| EL 1070 | 60% (Non-Operator) | 254,608 acres (1,030.40 km2) |
* - Assumes all amounts due to CIVC Creditor Corp. will be paid when due.
Areas of operation
Port au Port peninsular
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