Petrolia Inc.
TSX VENTURE : PEA

Petrolia Inc.

December 20, 2010 14:52 ET

Petrolia and its Partner Sign Final Agreement

RIMOUSKI, QUEBEC--(Marketwire - Dec. 20, 2010) - Pétrolia (TSX VENTURE:PEA) and Québénergie are pleased to announce their partnership to bring the Haldimand oilfield into production. To consolidate its role within the province, SCDM Énergie, through its subsidiary SCDM Investcan, created a Quebec-based subsidiary by the name of Québénergie, with offices to be located in Quebec. This presence demonstrates the company's long-term commitment to Quebec and will contribute to improving synergies with Pétrolia.

In return for a $15M investment, of which $6.5M has been paid to Pétrolia and $8.5M will be dedicated to exploration activities, Québénergie acquires 50% of Pétrolia's interest in the Haldimand discovery and in the 13 surrounding licences (2 500 km2). In addition to a solid financial base, Québénergie will contribute additional technical expertise toward bringing the Haldimand oilfield into production.

Subsequently, the costs will be shared equally between the partners. In the coming week, the partners will finalize the 2011 work program. Pétrolia will act as operator during the exploration phase, and Québénergie will take over this role in the commercial production phase.

"We begin today the decisive stage in bringing the field into production. While also making it possible to advance the project, this agreement reflects Pétrolia's desire to play a major role in the project's development. Both partners share a common vision for the project, which must proceed with significant consideration given to the local environmental and social context," stated Pétrolia's president André Proulx. "Québénergie's proposal for an agreement establishing a parity of interest between the partners ended up being a deciding factor for us, since it respected our wish to have a Quebec company play an important role in the development of the project."

About Québénergie

Québénergie Inc. is a subsidiary at 100 percent of SCDM Investcan (subsidiary at 100 percent of SCDM Energy), a private French company based in Paris and controlled by Martin and Olivier Bouygues. SCDM Energy holds indirectly an important participation in several exploration licenses in Newfoundland and Labrador and operates a natural gas field in the Ivory Coast by a subsidiary called Foxtrot International.

About Pétrolia

Pétrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 15,000 km² (2.7 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 50 million shares issued and outstanding.

About Haldimand

The deposit, which is located near Gaspé, contains 69.7 million barrels (Mbbl) of petroleum in place; the contingently recoverable portion is estimated at 7.7 Mbbl of high-quality light crude (53° API). This assessment is confined to the 9 km² area of the Haldimand property itself. The seismic data acquired suggests that the structure extends beyond the before mentioned area towards the northwest. It is believed that the potential reserves are consequently larger than the volumes mentioned above. (Refer to Press Release of 2010-06-07).

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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