Exploration licence EL1070 confers rights to explore for petroleum in an offshore area off the Port au Port Peninsula, western Newfoundland. The license was issued on the 15th January 2002 to Canadian Imperial Venture Corporation (CIVC) for a total license period of 9 years. The license is split into two consecutive periods. During the first period, the interest holder is required to drill or spud and diligently pursue one exploratory well in order to continue to the second period.
EL1070 contains a conventional prospect, Shoal Point, and a less conventional, shallower shale play.
In 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.
In 2008, SPE drilled the 2K-39-Z well to test the Shoal Point prospect. By doing so, the obligation under the first period of the licence was fulfilled and the licence was extended into the second period.
In 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.
On the 14th January 2011, CIVC and SPE announced that operations had begun on the Shoal Point 3K-39 well in EL1070.
Areas of operation
Port au Port Peninsula
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