Shoal Point Energy Ltd. Announces Drilling Update for 3K-39 Well

Shoal Point Energy Ltd. ("Shoal Point") (CNSX:SHP) received notification on
December 21, 2010 from Dragon Lance Management Corporation ("Dragon Lance") (the
"Operator") that there were deficiencies in several of the applications required
to be filed and approved by the regulatory authorities prior to receiving
approval to drill. The filing of these applications is the responsibility of the
Operator, Dragon Lance, who was notified of these problems directly by the
regulatory authorities. The delay in receiving the necessary approvals increases
the risk that the drilling of the well will not be initiated by the expiry date
of the license, January 15, 2011. The Operator and senior management from both
Shoal Point and their joint venture partner Canadian Imperial Venture Corp. are
now in St. Johns, Nfld. to address the deficiencies in the filings.


Shoal Point has already advanced in excess of three million dollars to the rig
contractor, rig transport contractor and the drill site preparation contractor,
such that all necessary work should be completed and the rig will be rigged up
and onsite in anticipation of the award of all necessary permits to commence
operations.


About Shoal Point Energy Ltd.

Shoal Point Energy Ltd is a public company which will have a 80.75% interest in
the shallow rights of Exploration Licence #1070 in the Province of Newfoundland
comprising approximately 137,000 acres of Green Point oil-in-shale prospective
lands. In addition, Shoal has a 14% interest in a gas prospect in the Province
of New Brunswick. Shoal Point Energy Ltd. currently has 135,958,280 common
shares issued and outstanding. The increase in common shares outstanding from
the previous press release on December 20, 2010, has resulted from the
conversion of convertible debentures into common share units.


Except for historical information contained herein, this news release contains
forward- looking statements that involve risks and uncertainties. Actual results
may differ materially from those currently anticipated due to a number of
factors and risks. The forward looking statements contained in this press
release are made as of the date hereof and Shoal Point Energy Ltd. undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.