New board revises company's financial statements
Shoal Point Energy is in a tough financial position, without working capital of any kind, according to a revised statement of the company's finances released by its new management team.
According to a news release issued Tuesday evening, the company, long interested in drilling and fracking for oil in western Newfoundland, has refiled its quarterly financial report.
The new statements show the company is running a deficit of $1.4 million and has no money to put into new exploration projects.
The company's previous statement showed almost $600,000 in the bank for planned projects.
"Our first mission is to get this company on solid financial footing," said new CEO Mark Jarvis in the news release.
"If we are successful in doing that, I look forward to exploring and developing ... along with our farm-in partner Black Spruce Exploration."
Jarvis said the new financial statement was the result of the "treatment if certain current assets" on the balance sheet under the former board of directors and managers, specifically certain guaranteed interest certificates and letters of credit.
The Shoal Point statement also notes "termination payments" made to the company's outgoing board of directors, totaling $630,000.
The current management team was appointed June 28.