Petrolia Inc.
TSX VENTURE : PEA

Petrolia Inc.

December 20, 2011 13:00 ET

Gaspe: Petrolia and Quebenergie Buy All of Junex's Interests in Haldimand

RIMOUSKI, QUÉBEC--(Marketwire - Dec. 20, 2011) - Pétrolia (TSX VENTURE:PEA) is very pleased to announce that, together with its partner Québénergie, it has purchased all of the interests held by Junex in the Haldimand deposit, located in Gaspé. With this transaction Pétrolia and Québénergie have now possess 100% ownership of the deposit, whose recoverable contingent oil resources are estimated at 7.7 million barrels over an area of 9 km2. This assessment, prepared in accordance with the 51-101 directive, also indicates that the structure extends beyond the limits of the area covered by the resource estimate. In view of Haldimand's potential, Pétrolia and Québénergie are very satisfied with the outcome of the negotiation.

Pétrolia and Québénergie paid $3.1 million to acquire the 36% interest in the deposit previously held by Junex. The agreement releases Junex from the production penalties to which it was exposed by its failure to participate in recent work on the properties.

As a result of this transaction Pétrolia and Québénergie now own equal shares in the deposit and the surrounding properties. This agreement is in line with Pétrolia's policy of holding at least a 50% interest in the leases where it works and in the projects that it is developing.

Pétrolia and Québénergie expect to drill a third well on this deposit as the suitable drilling equipment will be available. The horizontal drilling to be undertaken is designed to intersect a system of natural fractures. This next well could support an application for a production lease.

About Pétrolia

Pétrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 14,000 km² (3.5 million acres), which represents about 17% of the Québec territory under lease. The leases, the majority of which are located on the Gaspé Peninsula and Anticosti Island, are considered to be very promising and represent almost 70% of the territory under lease for which there is land-based oil potential in Québec. Pétrolia has 53.8 million shares issued and outstanding.

Forward-looking statements

Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Pétrolia and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications o statements made by Pétrolia. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Pétrolia does not intend and undertakes no obligation to update these forward-looking statements.

Neither the 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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