Shoal Point Energy Ltd. 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 (FNW).

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.

Tags: Shoal Point Energy Ltd.