Report on Business

Provide a general overview and discussion of the activities of management.

Management is actively evaluating new opportunities both in Newfoundland and in other jurisdictions, including Kansas. The Company entered into an agreement with Shelby Resources regarding three plays in Pratt County, Kansas. Shoal Point is participating as to a 6.5% working interest and has now drilled 2 wells in the first play and 1 well in the second. The first two wells have been completed and are undergoing production testing.

Completion operations on the third well are underway.

Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law

. A fourth well is expected to spud at the end of the first week of August.