(As of February 1, 2012)

oil and gas analyst back in

2003 and 2004. Now he is in a very

interesting position as a Vice President

with

of

we think are going to be very prominent

in the oil and gas business this

year. CGX for its high risk/high reward

drilling offshore Guyana, and

Shoal Point Energy for its exploration

and engineering challenges for

an oil shale play in West Newfoundland.

Tiny Shoal Point has a 100% interest in what could be

tens or hundreds of billions of barrels of shale oil that may

or may not be producible or commercial.

David Pescod: Mr. Clarke, looking at the two plays right

now, first

next few days, how long for results?

John Clarke: The first well, Jaguar, in which we have a

25% interest and is operated by Repsol on the Georgetown

License, is expected to be a 180-day well program, drilling

to 22,500 feet to the Turonian, and so we will have to wait a

little bit for the results on that one. The second well, which

is on our 100% interest Corentyne License, is the Eagle

Shallow well targeting Eocene and Maastrichtian prospects,

and we expect that program to be finished within 60

days, so news can hopefully be expected by April.

DP: Onto the other story – you are on the board of directors

of

that it looks similar to other shale plays.

JC: That’s a good question David. I think it’s unique for

Canada, but the analogies obviously are in the thick shale

sections of Argentina and elsewhere. This is similar to the

Bakken or Eagle Ford, but it’s bigger in terms in the thickness

of shale that is being tested.

David Pescod T: 780.408.1750 Debbie Lewis T: 780.408.1748 Toll Free: 1.877.409.1750

The company has just acquired 100% of a block just north

of their already big acreage, so they basically control the

whole of the Green Point Shale play which is the target of

interest. They are currently sidetracking a well down to

the prospective TD and we will run tests at that level and

then back up the hole in areas that look prospective from

previous logging and core samples. Any flow of oil from

the tests at TD or from multiple zones that were previously

recognized as prospective while drilling and in core samples

etc., will be extremely positive and should enable

Shoal Point to be awarded a significant discovery license

(SDL) by the regulatory body in Newfoundland.

DP: There is a lot of talk about what the impact might be if

this well actually flows on its own…

JC: I think it’s similar to other plays where you happen to

have an acreage position, and through hard work and serendipity

it happens that a major play breaks loose. No one

really considered the Neuquen Basin in Argentina as a

game changer in the past, where typical oil production

and reserves were relatively modest. Suddenly the shale

play is discovered, and resource estimates appear with

billions of barrels and TCFs of gas in place and billions of

recoverable BOEs and the value is measured by acres of

coverage and is extractable with new technologies such

as horizontal drilling and fracking! In this case the Green

Point Shale lies at home in Canada, which has a more

competitive fiscal system than Argentina, and we are very,

very excited about it. We need to establish oil flow and we

need to get an SDL, and then we can take stock and say

how many billions of barrels of oil we can potentially recover.

This is a very exciting, high upside story.

DP: What are some of the other questions should be

asked on this Shoal Point play?

JC: Well that’s an analysts question for sure David – we

have to get results from this well before we can answer

what needs to come next. Logically the play will require

multiple wells to be drilled over a wider area, and also

fracking would be contemplated to increase flow rates and

reserves drainage. Shale plays whether for natural gas or

in this case oil, are currently very big news and are attracting

the attention of the Global majors whether in Canada,

the USA or Argentina, which have an appetite for billions

of barrels of reserves. The questions then turn to

what are the potential reserves, how are those to be commercially

extracted, and which companies would be most

likely to have the skills and deep pockets for exploitation!

Page 3

Shoal Point is a small company, we have a tight management group, and these plays require unique engineering expertise.

Exploitation is the next leg and we will be looking at the best way to achieve this … We could look at a number

of future scenarios, but the main agenda now has to be demonstrating success from the current well drilling.

DP: How would one describe this play then as compared to CGX Energy which is involved with conventional oil exploration?

Shoal Point is more of a resource engineering concept … Is that correct?

JC: Well not exactly, it’s still exploration, because you have to prove the system before you get to exploitation, so in

the case of CGX Energy, we are actually targeting billion barrel targets for conventional light oil and you don’t have to

drill a lot of wells to prove that. On the other hand the CGX wells are very expensive, and range from $160 million for

the deep test at Jaguar, to $50 million for the Eagle Shallow well in Guyana. In Shoal Point’s case, we are working in

western Newfoundland where there is little infrastructure and no oil shale expertise in place, so one has to prove the

concept and then look around and say, who can benefit most from this? For both companies the key question for a

success case is similar - Do we raise the money to go alone or do we identify a strategic partner to continue drilling

up reserves to the development stage? In terms of financing and creating shareholder value, we are at the bottom of

the value S-Curve for an E&P company and need to make discoveries, turn resources into P-1 and P-2 reserves to get

full valuation for what we know is there.

DP: If you had to buy one oil stock, other than these two, what would it be?

JC: I had picked

not, the rumors are on the streets so it’s obviously a target. It fits in with many companies in the UK North Sea. Anyway

I’ll stay in this area and go with an old friend of mine from Texaco days whose been building an independent E&P

company for a long time now…

production and development on several fields in the North Sea where the fiscal system is good, so Antrim should enjoy

strong cash flow in the near term. So I’ll swap from Ithaca and pick Antrim. As far as a second pick, John Clarke

mentions

Romania in two or three months…it may not be on a scale of CGX energy offshore Guyana, but it’s big!

DP: Thank you very much John!