Shoal Point Energy Ltd. · OTC:SHPNF
Shoal Point Energy — Investor Presentation (October 2024)
27 slides from Shoal Point Energy's investor presentation, October 2024
Slide 1: Best estimate resource of 428 million barrels of light, sweet crude oil
Best estimate resource of 428 million barrels of light, sweet crude oil. An important economic opportunity for western Newfoundland. CEO: Mark Jarvis 1
Slide 2: Exploration Licences #1070 and #1120
SHOAL POINT ENERGY Exploration Licences #1070 and #1120 Wells to be drilled from onshore surface locations to offshore licences during exploration and evaluation Program. Shoal Point is operator and representative of EL 1070 and has certain farm-in rights on EL 1120 2
Slide 3: Oil seeps around Port au Port Bay
Oil seeps around Port au Port Bay Oil has been seeping continuously into the bay for approximately 10,000 years, since the glaciers melted and southern Newfoundland rose up above sea level. The oil is sourced from shallow packages of the Humber Arm Allochthon, which outcrop at surface around the bay
Slide 4: Seeps: Evidence of Active Petroleum System
Seeps: Evidence of Active Petroleum System Fox Is. Satellite Seep Identification Oil and Gas seeps, Oil Stained Outcrops Surrounding The Bay Gas Seep Oil Seep One Mile South of 3K Well 4
Slide 5: Murray and Howley, chief geologists for Newfoundland
Murray and Howley were, in turn, chief Geologists for Newfoundland. Source: Larry Hicks, Manager, Petroleum Geoscience, DNR, NL 5
Slide 6: West Bay Water Wells Contaminated with Hydrocarbons
West Bay Water Wells Contaminated with Hydrocarbons Source: Larry Hicks, Manager, Petroleum Geoscience, DNR, NL 6
Slide 7: Summary of Drilling History
SUMMARY OF DRILLING HISTORY Total wells: Approximately 17 Historical Era: – Approximately 11 shallow wells (1898 – 1933) on Shoal Point • Produced 10-20 BOPD • Drilled to 51 – 366 meters TD Modern Era: – 6 deeper wells drilled (1995 – 2012) – Lacked current drilling and completion technology for sha
Slide 8: Well at Shoal Point – drilled approximately 1900
Well at Shoal Point – drilled approximately 1900 8
Slide 9: Shales thin out towards South end of bay
Shales thin out towards South end of bay The thickest and most prospective shale formations are north of the line. Shoal Point Energy does not plan any evaluation drilling south of the line. 9
Slide 10: NI 51-101 Prospective Resource Estimate March 2014
NI 51-101 Prospective Resource Estimate March 2014 Author: Douglas McBride, Morningstar Consultants Low (Barrels) Best (Barrels) High (Barrels) 177,300,000 428,400,000 908,600,000 Prospective resources are defined as those quantities of petroleum estimated, as of a given date, to be potentially reco
Slide 11: Estimated Royalties to Provincial government from Humber Arm Shales
Estimated Royalties to Provincial government from development of Humber Arm Shales Using the middle (best) estimate of recoverable oil, full development of the Humber Arm Shales on Shoal Point’s licences would result in royalties to the Province of: Average $65/barrel price: $1.55 billion U.S. Avera
Slide 12: Local Economic Impacts
LOCAL ECONOMIC IMPACTS: - highly paid jobs (20 Full Time Equivalent jobs per well). - real estate values will increase due to rising population - local businesses will see increased revenues: - gas stations, grocery stores, restaurants, hotels, bed and breakfasts, pubs - rental car agencies, truckin
Slide 13: Local Hiring
LOCAL HIRING One of the unique aspects of this project is that a well trained local work force already exists. However, this highly skilled local work force does not live here. The workers live in Alberta, Saskatchewan, Manitoba, St. John’s and further afield. Many of these oil field workers would l
Slide 14: Public Sector Employees as percent of all Employees
Public Sector Employees as percent of all Employees: Canada: 20.5% Provinces from highest to lowest: PEI 30% NL 27.2% Manitoba 26.4% New Brunswick 25.6% Nova Scotia 25.6% Saskatchewan 24.7% Quebec 22.1% Ontario 19.4% B.C. 18.8% Alberta 17.1% Newfoundland and Labrador’s ratio of public to private emp
Slide 15: Ripple Effect
Ripple Effect The most direct economic benefit would be to the small communities around Port au Port Bay. Real estate values would increase dramatically due to people moving in, rather than people moving out. Stephenville and Corner Brook would experience large economic impacts. Every type of busine
Slide 16: Increased activity during the development phase
Unlocking this resource will involve increased activity during the development phase - Increased truck traffic - Noise from drilling and completion operations - Surface disturbance at drilling locations 16
Slide 17: Increased truck traffic
Increased truck traffic In the exploration and evaluation phase, truck traffic would be intermittent and infrequent. If evaluation leads to full field development, transportation demands would increase. However, solutions exist to minimize truck traffic. Barges could be used to transport many materi
Slide 18: Noise from drilling and completion operations
Noise from drilling and completion operations We have no plans to drill within 1 kilometer of any permanent residence. On a windy day, it will be difficult to hear our operations except from very close to the drill site. On a flat calm day, sound does carry across the water. There are methods to baf
Slide 19: Surface disturbance
Surface disturbance Development of natural resources is not possible without some degree of surface disturbance. Farming, logging, mining and hydrocarbon development all cause various amounts of surface disturbance. Of these activities, logging and farming cause the largest disturbance relative to w
Slide 20: Example of surface disturbance: the Corner Brook mill
Example of surface disturbance. The mill at Corner Brook is an important economic driver for the entire area, providing direct jobs plus many spinoff benefits. Logging to supply the mill causes other, larger surface disturbances. 20
Slide 21: Open pit mine at Lower Cove, Port au Port Peninsula
Another surface disturbance, an open pit mine at Lower Cove on the Port au Port Peninsula. 21
Slide 22: Roads, houses, airports, malls and golf courses
Roads, houses, airports, malls and golf courses are other examples of surface disturbance. 22
Slide 23: Multi well drill pads minimize surface disturbance
Multi well drill pads minimize surface disturbance We do not have an art department, so we have to ask you to imagine the drill pad is on land and that the wells are drilled into rock formations deep under the shallow water of Port au Port Bay, rather than deep beneath the forest. 23
Slide 24: 18 well pad in production, northeast British Columbia
This is an 18 well pad in production after drilling and completion, located in northeast British Columbia. The surface disturbance is very small relative to the wealth being generated, wealth that will continue to be generated over many years. Oil and gas production sites are also very quiet. 24
Slide 25: What's in it for the locals?
What’s in it for the locals? On the positive side, if the project proceeds and meets with success, it will be an important economic driver for the local economy. The long term decline and aging of the local population will reverse as young families move in for the jobs. Population increases usually
Slide 26: What could a 0.1% Royalty be worth over the life of the project?
What could a 0.1% Royalty be worth over the life of the project? Average $65/barrel price: (All figures U.S. $) Low estimate Best estimate High estimate $11,524,500 $27,846,000 $59,059,000 Average $100/barrel price: Low estimate Best estimate High estimate $17,730,000 $42,840,000 $90,860,000 26
Slide 27: Thank you for taking the time to review our information
Thank you for taking the time to review our information CEO: Mark Jarvis 27
Shoal Point Energy — Investor Presentation (October 2024) on 6ix