TSX Venture Exchange: CQV
ST. JOHN'S, Sept. 26, 2011 /CNW/ - Canadian Imperial Venture Corp.
(TSXV: CQV) (the "Company" / "CIVC") is pleased to announce that the
Company has reached an agreement with Shoal Point Energy Limited
("SPE") whereby CIVC will acquire a 10.20% ownership position in the
stock of SPE as well as the right to appoint a representative to the
board of SPE.
Under the agreement, SPE will issue 20 million shares and 10 million
warrants to CIVC. The warrants have a strike price of $0.40 and a 2
year term. In exchange for the shares and warrants, CIVC will assign
its interest in EL1070 and EL1120 plus any rights that the Company
holds under an Area of Mutual Interest ("AMI") agreement between CIVC
and SPE relating to West NL. SPE will also pay CIVC a total of
$500,000 cash, $300,000 to be paid on closing which is expected to
occur on October 25, 2011, and the balance on or before April 25, 2012
(SPE has the option to pay the $200,000 balance in cash or stock,
consequently, on closing and an additional one million shares of SPE
will be issued to CIVC in escrow pending the cash payment).
Furthermore, all outstanding debt between SPE and CIVC relating to the
3K-39 well will be extinguished on closing. All securities issued in
this transaction will be subject to a four month hold period. The
proposed deal is subject to CIVC shareholder approval and TSX Venture
The Board of CIVC has unanimously approved this deal. In considering
the approval of this transaction, the Board and Management took into
account SPE's excellent record as an operator in West Newfoundland as
well as its superior technical team and the Company's demonstrated
ability to conduct and fund operations in a frontier area. CIVC's
Board of Directors and Management believe that the proposed transaction
allows the Company and its shareholders to participate in the upside of
the Green Point oil-in-shale play without risking further capital. The
deal gives CIVC a significant share position in SPE and a seat on the
board which means that the interests of CIVC shareholders will be
"I am one of the founders of CIVC and I am still one of the Company's
largest shareholders and I believe this deal makes sense at this time,"
said Gerard Edwards, President and CEO of Canadian Imperial Venture
"I congratulate the Board and Management of CIVC in being able to
negotiate this agreement which keeps the Company in the exciting Green
Point play," said Steven Millan, Member of the CIVC Advisory Board and
Resource Estimate Report
Shoal Point Energy has engaged the services of Gaffney Cline &
Associates to prepare a resource estimate report for the entirety of
its Green Point oil-in-shale lands, approximating 217,298 acres. This
initial report is anticipated to be completed by November 2011.
The above study will also be integrated into an updated National
Instrument 51-101 report by Gaffney Cline.
Gaffney, Cline & Associates is a global consultancy offering technical,
commercial and strategic advice to the petroleum sector, and has over
400 technical and commercial advisory staff members in eleven offices
Well 3K-39 Update
Shoal Point announced on July 26, 2011 that it had drilled to a depth of
1745 metres and run casing to 1711 metres. The planning and approval
of the well completion and testing program is still being finalized and
the Company expects to commence this within the next 20 days upon the
arrival of a service rig on site. This next stage will include
deepening of the well to an anticipated depth of 2200 metres and two
types of testing:
(1) bottom hole testing of potentially oil-bearing carbonate-rich units,
as correlated with other wells in the area, and
(2) perforation of highly fractured units which indicate hydrocarbons
from logs, cores, drill cuttings, and permeability from a successful
short-term open-hole closed chamber test, as reported earlier.
The drilling and testing operation is expected to take up to 5 weeks to
Update on Core Analysis, 3K-39
SPE has received the initial results of analysis of approximately 26
metres of core by Ingrain Digital Rock Physics Lab in Houston, Texas.
A 3-D digital core scanning and imaging study displays pervasive and
systematic fracturing and therefore supports preliminary observations
from the well, particularly log invasion profiles and the results of
open-hole testing, that significant natural permeability is present.
In addition, this technique provides density and atomic number
measurements, which are being integrated with other petrophysical data
to study reservoir quality. A second phase of core study will involve
detailed sampling and measurement of reservoir quality and hydrocarbon
saturation within coarsening-upward sedimentary cycles; such cycles are
numerous in the Green Point and contribute to its extraordinarily thick
gross pay section. This information will allow optimum future targeting
of test and completion intervals.
Canadian Imperial Venture Corp. is an independent Atlantic
Canadian-based resource company.
CANADIAN IMPERIAL VENTURE CORP.
By: "Gerard Edwards"
Gerard Edwards, MBA
President and CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ACCURACY OF THIS PRESS RELEASE.
This release includes certain forward looking statements which reflect
beliefs, expectations, objectives and goals which are believed to be
reasonable at the time such statements are made. Actual results could
differ materially from anticipated results and may be impacted upon
such factors as commodity prices, political developments, legal
decisions, market and economic conditions, industry competition, the
weather, changes in financial markets and changing legislation.
SOURCE CANADIAN IMPERIAL VENTURE CORP.
For further information:
Canadian Imperial Venture Corp.
P.O. Box 6232, Stn. C
St. John's, NL A1C 6J9
Tel.: (709) 739-6700 / Fax: (709) 739-6605
E-mail: firstname.lastname@example.org / website: www.canadianimperial.com