Petrolia Inc.
TSX VENTURE : PEA

Petrolia Inc.

December 16, 2009 11:37 ET

A Second Petroleum Discovery for Petrolia in the Gaspe Region

QUEBEC CITY, QUEBEC--(Marketwire - Dec. 16, 2009) - Petrolia (TSX VENTURE:PEA) announces that it has made a discovery of light crude oil at Tar Point, in strongly-fractured limestones of the Indian Cove Formation. Preliminary examination of the data from Drill Stem Test (DST) No. 1 suggests that the zone tested could initially produce about twenty barrels of oil per day. A production test to obtain a better estimate of the reservoir's production capacity is scheduled for early January. Deliveries of light crude generated by this production test could begin during the winter of 2010. Based on the results obtained, the zone tested could be selected for hydraulic fracturing, a procedure designed to increase daily production from the well. A second DST, carried out at a lesser depth in the York River Formation, showed indications of oil and the zone could possibly be the subject of hydraulic stimulation.

The Tar Point well bottomed at 2,434 metres in tight sandstones saturated with petroleum. The well had been cased to 2,201 metres. A removable packer was installed at the bottom of the casing to allow if required the assessment of the uncased section at the bottom of the hole. Petrolia has a 100 % interest in the well.

Five DST's have been performed in the well and the first two have given positive results:

DST No. 1: carried out between the 2 045 and 2 201m levels, the test targeted a strongly-fractured section of limestone in the Indian Cove Formation. In one hour, the zone yielded a small flow of gas to surface and 184 litres of fluid (mainly composed of drilling mud and light crude oil) were recovered in the drill pipes. Samples of light crude were collected in the sample chamber for analysis. Well completion work is scheduled to begin in early January 2010, followed by a production test.

DST No. 2: carried out in the York River Formation between the 1528 and 1584 m levels, the test produced a small flow of air on surface, a recovery from the drill pipes of 58.33 metres (213 litres) of drilling mud with minor gas, and gasified mud with a little black oil from the sample-chamber. The pressure-buildup data indicate that the zone tested has low permeability. Since this zone is located in the same formation as the Haldimand play, a decision to undertake hydraulic stimulation will depend on the results of work to be carried out at Haldimand in early 2010.

"Petrolia's Tar Point #1 discovery is the second petroleum discovery made by the Company. These drilling operations have demonstrated that the well has been positioned in an area of high potential for petroleum, thereby opening the way to a region that could contain a number of geologic structures favourable for hydrocarbon accumulation. This corridor extends for a minimum of 11 km between the Haldimand and Tar Point oil wells. Moreover, the discovery of a new producing reservoir beside the one at Haldimand suggests very promising additional exploration prospects" notes Andre Proulx, Petrolia's President.

About Petrolia

Petrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 15,000 km2 (3.7 million acres), which represents about 18% of the Quebec territory under lease. These leases, the majority of which are located on the Gaspe Peninsula and Anticosti Island, are considered to be very promising and represent almost 70% of Quebec's land-based oil potential. Petrolia has 48,874,787 shares issued and outstanding.

This press release was prepared by Bernard Granger, Petrolia's Chief Geologist.

Forward looking statements

This news release contains certain forward-looking statements. These statements relate to future events or future economic performance of Petrolia and carry risks, uncertainties and other factors - both known and unknown - that may appreciably affect their respective results, economic performance or accomplishments when considered in light of the content or implications of statements made by Petrolia. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Petrolia do not intend and undertake no obligation, to update these forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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