Shoal Point Energy needs money

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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.

Geographic location: Newfoundland

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Recent comments

  • Cdr
    July 24, 2013 - 12:35

    The new management are the IDIOTS here!! What the hell?! They put out a press release saying THEY are changing "accounting policy", policy that had been FULLY DISCLOSED and agree to by the previous auditors, as they say themselves?! WHY? There is money in the company and the Black Spruce deal means not much money needs to be spent. The reason seems to be that new management want to take more money FOR THEMSELVES out of the company, and this whole press release appears to be a massive breach of trust by new management!

  • Jack
    July 23, 2013 - 20:39

    If Shoal Point Energy cannot manage itself financially, I think its in the best interest for its parent company, Canadian Imperial Venture, to seize control over the company and sell its assets. That way, it will protect Canadian Imperial Venture from being dragged down.

    • david
      July 24, 2013 - 11:49

      Yes, we wouldn't want CIVC to get itself into financial trouble.....bwa ha ha ha ha! Let's preserve the pristine Balance Sheet of that other, Blue Chip juggernaut! Bwaa ha ha ha ha.......