Shoal Point engages with Newfoundland regarding compensation
Vancouver BC – Mark Jarvis, CEO of Shoal Point Energy Ltd. (CSE – SHP) ("Shoal Point" or the "Company"), announced today that it has been engaging with the Government of Newfoundland and Labrador regarding compensation for its frustrated efforts to develop its hydrocarbon assets on the west coast of Newfoundland.
"Our Company has spent more than $40 million on attempting to develop the Humber Arm Formation shale play offshore of the Port au Port peninsula," said Mr. Jarvis. "Our efforts have been stopped for 10 years by a fracking moratorium that was introduced by the Province in 2013. Under recent Supreme Court of Canada case law, we feel we are entitled to compensation for the Province's actions, formally known as constructive expropriation. In addition to our sunk costs, our lost opportunity costs are considerable. If our dialogue with the Province fails to bear fruit, we will be considering our options."
The Company confirms that, while it is pursuing compensation from the Province, to date these efforts have been unsuccessful and there is no certainty that a settlement will be reached.
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