Calgary - A long, narrow stretch of shale rock that runs along western Newfoundland's coastline might be home to North America's next big oil find.
So believes the junior oil explorer that's snapped up virtually all of the land in the Green Point shale.
But Shoal Point Energy Ltd. (CNSX:SHP) hasn't quite figured out how to economically draw the crude - some 23 billion barrels of it in place, according to one estimate - from the uneven, broken-up rock.
"It's a bit of a wild frontier still," said George Langdon, the company's Newfoundland-raised CEO, who has long been fascinated by rocks on the Rock.
"There's a lot of oil in place. We haven't proven the viability of it yet. But just the sheer number of what could be in place there makes it, to me, one of the significant resources in North America, right up there with the big ones"
As in other shale formations throughout North America, tapping the Green Point will require hydraulic fracturing, or fracking, to unlock the resource. The controversial practice involves injecting a mixture of water, sand and chemicals underground in order to crack the rock.
Fracking has unleashed huge supplies of natural gas and oil from shales across the continent, but it also brings with it concerns over the safety of groundwater supplies near drilling sites.
Comment: It's interesting to note that days after the Canadian government chose to close the Canadian embassy in Tehran, this so called "snub" happened by the U.S.. This should be perceived as what it is: a game of good cop, bad cop and it's all part of the show folks.