Petrolia Inc.
TSX VENTURE : PEA

Petrolia Inc.

December 18, 2006 10:38 ET

New Exploration Work and Update on Current Financing for Petrolia

RIMOUSKI, QUEBEC--(CCNMatthews - Dec. 18, 2006) - Petrolia (TSX VENTURE:PEA) is currently negotiating an operating agreement with it partners, Junex and Gastem, concerning the production of oil and gas from its Gaspe Peninsula and Gastonguay permits. Concurrently, exploration is being carried out on the Gaspe permits in the form of a 70 km regional seismic survey in order to evaluate the hydrocarbon potential of the permits. The current exploration work is being carried out as recommended by Sproule and Associates of Calgary in 2003 and 2004. Petrolia considers the permits to be prospective for the discovery of oil and will continue to explore for producing reservoirs.

Petrolia's projects were highlighted at the "Summer NAPE" conference in Houston in August 2006 where comparisons were made between the producing Clinton, Medina and Tuscarora Appalachian fields in the United States and Petrolia's Gaspe permits which lie along the northeastern extension of the Appalachian mountain chain. These comparisons continue to be reinforced as Petrolia advances its exploration of the Gaspe permits.

Following routine delays, the previously announced European financing is progressing. Petrolia expects to conclude the proposed financing and to proceed with the development of the Haldimand oil field and the continued exploration of its Quebec oil and gas permits.

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