ST. JOHN'S, Jan. 17, 2012 /CNW/ - Canadian Imperial Venture Corp. (TSXV: CQV) ("CIVC" / the "Company") is pleased to announce the following:
The Company has been notified by Shoal Point Energy Ltd. ("SPE") that a deal has been reached with NWest Energy Corp. whereby SPE will acquire a 100% working interest in all rights in EL 1079R, comprising approximately 500,000 acres, in the immediate offshore area of western Newfoundland. This licence is contiguous with EL 1120 and EL 1070.
Payment is to be made in three stages as follows:
- annual refundable drilling deposits of $1,000,000 (to the regulatory body);
- an initial 2,000,000 shares and 2,000,000 warrants of SPE will be issued to acquire the 100% working interest;
- an additional payment at the time of spudding a well on this property of 4,000,000 shares and 4,000,000 warrants of SPE, and the grant of a 2% gross overriding royalty, 0.75% of which can be repurchased by SPE.
A well must be spudded on the license by January 15, 2014. The license covers the extent of the Green Point Oil-in-Shale in the northern half of the western Newfoundland offshore area. It is expected that much of this licence area can be exploited from land.
The agreement will enable Shoal Point Energy to increase its gross acreage position in the Green Point Oil-in-Shale from 217,000 to approximately 720,000 acres.
Shoal Point Energy also announced today that cased-hole operations continue at its Shoal Point 3K-39 location; this stage of operations is expected to last 7-10 days and will prepare the cased borehole for sidetracking (3K-39z) and deepening of the well. Shoal Point Energy and Dragon Lance Management Corporation continue to work diligently with the Canada Newfoundland Offshore Petroleum Board to finalize all approvals for the deepening and testing of the well, and it is expected that all approvals will be forthcoming.
"As a significant shareholder of Shoal Point Energy Ltd. we are very excited about today's announcement. The acquisition of NWest lands will effectively triple the Green Point Oil-in-Shale acreage held under license by SPE thereby significantly enhancing the potential value for the shareholders of CIVC," said Gerard Edwards, President and CEO of Canadian Imperial Venture Corp.
Canadian Imperial Venture Corp. is an independent Atlantic Canadian-based resource company.
CANADIAN IMPERIAL VENTURE CORP.
President and CEO
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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.