Shoal Point Energy Ltd. announced that Dragon Lance Management Corp. has received approval to drill ahead in a new borehole (side track 3K-39z) within the Green Point Formation. The current well, 3K-39, has been drilled to 1,745 metres and cased to 1,711 metres. The new side track borehole, named 3K-39z, will be drilled by setting a whipstock at approximately 1,585 metres and drilling out of casing and drilling ahead to the base of the Green Point Formation. The current work will involve a comprehensive testing program, which will include one open hole test in the new 3K-39z borehole, and then, up to four tests out of the casing in the existing 3K-39 borehole, subject to final regulatory approvals of the testing program. All tests will occur within the Green Point Formation, and will test the flow potential and reservoir characteristics of unstipulated, fractured Green Point shales. The entire program is expected to take up to 60 days to complete.