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.
In November 2009, PDIP entered into an interest swap agreement with Canadian Imperial Venture Corporation and Shoal Point Energy 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.
In August 2010, as part of their regional development plan, PDIP agreed to enter into a farm-out agreement on Shoal Point. Under the terms of the agreement, the farm-in partner will commence a seismic programme that will cover the prospective areas of EL1070. The intention is for a minimum of 40% of the seismic to be shot in 3D, although this will be subject to environmental considerations and permitting issues. The farm-in partner will also drill a new well to test the productivity of the Aguathuna Formation located offshore, which contains the conventional Shoal Point prospect, assuming 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.
As stated in Enegi’s Competent Persons Report at the time of the IPO, TRACS International Limited estimated that Shoal Point contained the following unrisked prospective resources:
| Prospect | P90 | P50 | P10 | Mean | |
|---|---|---|---|---|---|
| Shoal Point | Oil in MMbo | 6.9 | 18.9 | 50.8 | 25.6 |
| Gas in Bcf | 6.0 | 16.9 | 46.6 | 23.1 |
A copy of the Competent Persons Report is included in the listing prospectus for Enegi Oil Plc., which can be viewed here.
Areas of operation
Port au Port Peninsula
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