Canadian Imperial Begins Drilling on Shoal Point, Newfoundland

Canadian Imperial Venture Corp. has been informed by the operator, Shoal Point Energy Ltd., that drilling commenced today on the Shoal Point et al 2K-39 well in western Newfoundland.

The well will be directionally drilled from an onshore surface location on the northern trip of Shoal Point to a subsurface target beneath Port au Port Bay, approximately 2,200 meters, a few degrees west of due north of the point. By drilling a directional well from onshore, impacts on the marine environment of the Bay are minimized.

The well is designed to test a large seismically defined structure which is genetically related to the Hunt et al Port au Port #1 discovery at Garden Hill South. Formations within the Ordovician St. George's Group are being targeted by the well with the primary target being the Aguathuna Formation which is productive at Garden Hill. The well will be terminated in the Watt's Bight Formation which has demonstrated high porosity and permeability elsewhere. Testing of the Aguathuna and Watt's Bight Formations at the Port au Port (number sign)1 well produced a combined total of 7600 barrels per day of fluids including 51 degree API, low sulphur oil and sweet natural gas.

Drilling, using the Nabor's #45 drill rig, is estimated to take between 75 and 90 days. The planned total drilled depth of the well is 4040 m (2700 m total vertical depth). The planned average deviation angle of the borehole is approximately 45 degrees. The company intends to make regular news releases on the status of the drilling project as information is received from the operator.