Shoal Point Energy Signs a Letter of Intent for a Joint Venture

Shoal Point Energy Signs a Letter of Intent for a Joint Venture to
Explore and Develop Its Green Point Shale Licenses, West Newfoundland 
TORONTO -- (Marketwire) -- 12/19/12 --  Shoal Point Energy Ltd.
("Shoal Point" "SPE" or the "Company") (OTCQX: SHPNF) (CNSX: SHP) has
signed a Letter of Intent regarding a proposed transaction between
SPE and Foothills Capital Corp., and its subsidiaries, Black Spruce
Exploration Corp. ("BSE"), and Foothills North West Holdings Corp
BSE and FNW intend to enter into Definitive Agreements with SPE on or
before January 11, 2013, subject to respective corporate and
regulatory approvals, whereby (1) FNW will participate in a private
placement for a minimum of 35 million units @ $0.06 (representing a
minimum $2.1 million investment, and comprised of common shares and a
common share purchase warrant exercisable for 18 months @ $0.15), and
whereby (2) BSE will execute a farmin agreement giving it the right
to earn up to a 60% interest of SPE's interests in three (3)
Exploration Licenses ("EL's") offshore western Newfoundland. The earn
in will occur by a staged work program whereby BSE can earn
incremental components of interest by drilling on SPE's lands. All
wells are contemplated as onshore-to-offshore deviated drill
programs, and will be designed to reach depths of up to 3000 metres.
BSE will be the Operator of the four wells. 
Farmin Program: 
Phase I Earning (2013-2014): During this phase BSE will pay 100% of
the costs of drilling, testing and completing four wells on ELs 1070,
1120 and 1097R, to earn BSE a 50% interest in SPE's interests. This
phase is expected to commence by May 1, 2013. 
Phase II Earning (2014-2015): During this phase BSE will pay 100% of
the costs of drilling, testing and completing up to eight wells to
earn up to an additional 10% of SPE's interest in its three blocks.  
The drilling, testing and completion programs contemplated herein
will be subject to approvals of the Canada-Newfoundland Offshore
Petroleum Board. 
Final Earning Position: For clarity, the maximum amount of gross
interest that BSE can earn under this agreement is: 60% of EL 1097R,
60% of EL 1070, and 48% of EL 1120 (operated and held by Ptarmigan
Energy Inc.). 
Application for Significant Discovery Licenses: Upon
 the successful
testing and recovery of petroleum in an exploration well on a
particular license, the two parties shall cooperate to apply to the
Canada-Newfoundland Offshore Petroleum Board for a Significant
Discovery License ("SDL") for that property, which when awarded shall
allow the parties to hold, develop and produce from the lands.  
About Foothills Capital Corp.
 Foothills Capital Corp. ("Foothills
Capital"), with offices in Richmond Hill, ON and Calgary, AB,
provides investment capital and management expertise to companies
engaged in the energy sector. Foothills Capital looks to identify
long-term, sustainable revenue-growth companies or opportunities and,
where applicable, provide capital, strategic direction and
collaborative planning with management in order to maximize returns. 
The principals, as a combined group, have worked in the energy sector
directly or indirectly for more than 50 years, engaging in
transactions that range from $1 million to more than $200 million in
value. Foothills Capital, under TRP Holdings, Corp., presently
operates in the Bakken shale-oil formation through its subsidiary
entity Bakken ND Pipe & Supply, LLC, which is located in Ross, North
About Shoal Point Energy Ltd.
 Shoal Point Energy Ltd is a
Canadian-listed public company (CNSX: SHP) with a large working
interest position in a regionally-extensive "tight" oil play within
the Cambro-Ordovician Green Point Formation ("Shale") of western
Newfoundland. The Green Point is an approximate stratigraphic
equivalent, within the northernmost Appalachians, of the well-known
Utica Formation currently under development in the United States. The
company's technical database, in addition to third-party analysis,
indicates that the Green Point contains a very large resource in the
oil window, and the Company has dedicated itself, in cooperation with
its partners, to bringing this resource to production over the next
several years.  
SPE's current holdings in western Newfoundland consist of: (1) a 100%
working interest in the Green Point shale rights ("shallow rights")
in EL 1070, comprising approximately 150,000 acres of prospective
shale area, (2) a right to earn an 80% working interest in the
"shallow rights" within a nearshore portion of EL 1120, held by
Ptarmigan Energy Inc., comprising approximately 67,000 acres, and (3)
a 100% working interest in all rights in EL 1097R, comprising
approximately 500,000 acres, for a total exposure of approximately
720,000 gross acres to the Green Point "Shale" play. 
Shoal Point currently has 302,511,792 common shares issued and
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Except for historical information contained herein, this news release
contains forward-looking statements that involve risks and
uncertainties. Actual results may differ materially from those
currently anticipated due to a number of factors and risks. The
forward looking statements contained in this press release are made
as of the date hereof and Shoal Point Energy Ltd. undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws. 
For further information, please contact: 
David Black 
416-637-2181 ext 308
Hayley Clift 
416-637-2181 ext 306 
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