SHP Shoal Point Energy Ltd

Shoal Point Energy Ltd. ("Shoal Point") (CNSX:SHP) is pleased to provide the
following operational update in relation to its well 3K-39 which is currently
evaluating the hydrocarbon potential of the Green Point Shale on Exploration
License 1070 offshore Newfoundland.


The operation is proceeding to run casing to 1725 meters, and is planning,
subject to CNLOPB approval, to run a cased hole test over the open lower
carbonate-rich section of the well to the total depth of 1745 metres, from which
promising hydrocarbon indications were encountered during drilling and logging
operations. This lower section of the Green Point is correlated with a zone
which, in the 1999 PCP et al. Shoal Point K39 well, showed oil on logs by Nutech
analysis and flowed hydrocarbons in a closed chamber test, and which, in the
Golden Eagle Shoal Point #2 well of 1965, displayed live oil shows in core.


Thereafter it is planned, over the next few weeks and subject to discussion and
approval by the regulator CNLOPB, to perforate and test a series of fractured
zones (between approximately 1325 and 750 meters) which were identified from log
analysis and core data, and which, from a series of open-hole closed chamber
drill stem tests, indicate significant natural permeability. As reported
earlier, one of these tests flowed back drilling fluids over a short (9 minute)
period at a rate which can be extrapolated to approximately 2,700 barrels per
day, with a formation pressure of 8856 kPa. These results suggest that the well
may be capable of producing formation fluids without artificial stimulation.


The company has received a preliminary report from its technical advisor, NuTech
Energy Alliance, of Houston, Texas (www.nutechenergy.com) on the hydrocarbon
potential of the well. Over a gross Green Point Shale interval of 1325 meters,
more than 170 meters of net oil-in-shale pay were identified, including one 25
metre section with effective porosity ranging between 10 and 16%, with oil
saturations generally between 50 and 86%. 


A significant thickness of lower Green Point Formation lies beneath the current
depth of 1745 metres. In addition, core has been shipped to Ingrain Digital Rock
Physics Lab in Houston for 3D imaging and analysis; these will be incorporated
in a revised analysis of the hydrocarbon potential of this well and the block as
a whole. A Report (51-101) on the resource potential of the block will be
prepared by a competent third party as soon as the data from drilling operations
has been acquired.


George Langdon, President of Shoal Point Energy commented "The results from the
well so far have indicated that EL 1070 contains a unique and attractive
combination of unconventional (oil-in-shale)reservoirs, with highly fractured
reservoir sections which should be capable of production without stimulation.
The testing programme is designed to provide sufficient data to establish the
commerciality of the play".


About Shoal Point Energy Ltd.

Shoal Point Energy Ltd is a public company earning an 80.75% interest in
Exploration Licence #1070 in the Province of Newfoundland comprising
approximately 150,000 acres of oil-in-shale and the right to earn a net 48%
interest in approximately 67,285 acres in Exploration Licence #1120. 


Shoal Point's partner in EL 1070 is Canadian Imperial Venture Corp. ("CIVC")
(CQV.V on TSX Venture) as to 19.25%. In addition, CIVC has the right to
participate in EL 1120 for up to 40% of Shoal Point's interest pursuant to an
agreement regarding Areas of Mutual Interest.


In addition, Shoal Point has a 6 - 14% interest in a gas prospect in the
Province of New Brunswick. 


Shoal Point currently has 169,729,594 common shares issued and outstanding.

Visit our website at www.shoalpointenergy.com 

Except for historical information contained herein, this news release contains
forward-looking statements that involve risks and uncertainties. Actual results
may differ materially from those currently anticipated due to a number of
factors and risks. The forward looking statements contained in this press
release are made as of the date hereof and Shoal Point Energy Ltd. undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.

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