QUÉBEC CITY, QUÉBEC--(Marketwired - April 1, 2014) - Pétrolia (TSX VENTURE:PEA) announces that it has closed the Anticosti transaction originally disclosed on February 13, 2014. The closing of this transaction has resulted in the creation of a limited partnership that will own and operate the interests on Anticosti Island that were previously held by Pétrolia and Corridor Resources Inc. The following is a list of the limited partners and their ownership percentages:
|Corridor Resources Inc.
|Saint-Aubin E&P (Québec) Inc.
The board of directors of the general partnership is composed of one member appointed by each partner. The limited partners shall also choose an independent director in the next few weeks. Mr. Myron Tétreault will be the director appointed by Pétrolia.
The board of directors has established an Operations Committee to supervise ongoing work of the Partnership, which committee will be chaired by Mr. Alexandre Gagnon, Executive Vice-President of Pétrolia, as well as an advisory Technical Committee which will be chaired by Mr. Gildas Collin, Pétrolia's Chief Operating Officer. The partnership has also established a Health, Safety and Environmental Committee and a Local Acceptability Committee. These committees are composed of an equal number of representatives from each partner.
Details of the transaction
For the purposes of the transaction, the value of the exploration permits has been determined to be $100 million. Ressources Québec and St-Aubin E&P have undertaken to finance up to $100 million of exploration work, divided into two investment phases. Ressources Québec has undertaken to invest up to $56.67 million in exchange for a 28.3% interest and St-Aubin E&P has undertaken to invest up to $43.33 million for a 21.7% interest. In order to ensure identical participation by the three public companies and a 35% participation by Ressources Québec, Pétrolia and Ressources Québec have paid $1.9 million and $13.3 million, respectively, to Corridor Resources. Following these transactions the parties have the following interests in the Partnership: Ressources Québec 35 %, Pétrolia 21.7%, St-Aubin E&P 21.7% and Corridor Resources Inc. (CDH-TO) 21.7%.
The first phase of the exploration program shall begin this summer and continue for the next two years. It will initially include 15 to 18 stratigraphic survey wells, aimed at increasing understanding of the local geology. These coreholes will help identify the best locations for the three horizontal petroleum wells to be drilled in the second phase of the program, for an estimated cost of $55 million up to a maximum of $60 million.
The financial advisors for Pétrolia and Corridor in this transaction were National Bank Financial. Pétrolia's legal advisors were Davies, Ward, Phillips & Vineberg LLP., Colby, Monet, Demers, Delage & Crevier LLP. and ParleeMcLaws LLP. The transaction is subject to the final approval of the TSX Venture Exchange.
A Significant Advance
According to Myron Tétreault, President and CEO of Pétrolia: "We are tremendously pleased to announce the completion of this transaction, which is an important step forward for our company, for the industry and for the Province of Quebec."
"The Quebec petroleum industry has been dormant for a while and the closing of this transaction represents the impetus that our sector needs to restart on a solid footing," stated Mr. Alexandre Gagnon, Executive Vice-President.
Pétrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 16,000 km² (4 million acres), which represents about 22% of the Québec territory under lease. Pétrolia is a Quebec company which ensures that development respects local communities and Quebec values. Pétrolia has 70,667,372 shares issued and outstanding.
Corridor is an Eastern Canadian junior resource company specializing in oil and gas exploration and development onshore in New Brunswick, P.E.I. and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas production and reserves in the McCully Field near Sussex, New Brunswick and, in 2008, it discovered oil reserves in the Caledonia Field near Sussex, New Brunswick. In addition, Corridor has contingent and confirmed shale gas resources in Elgin, New Brunswick.
About Ressources Québec
As a subsidiary of Investissement Québec, Ressources Québec is the gateway for companies seeking to invest in the mining and oil and gas industries. Ressources Québec supports resource companies at every stage of their projects, from exploration and development through to processing. It offers a full range of financial products, including investments in equity, debentures and various types of loans.
About St-Aubin E&P
Saint-Aubin E&P (Québec) Inc., a wholly-owned subsidiary of Saint-Aubin Energie SAS, is a corporation jointly founded by Maurel & Prom and MPI in 2013 in order to diversify the assets of the two founding companies. The head office of Etablissements Maurel & Prom and MPI is located in Paris. The two companies have a combined market capitalization of approximately EUR1.8 billion. They are active in the field of onshore and offshore oil and gas production in 10 countries on four continents. Their management teams are comprised of professionals with strong track records in the oil and gas industry.
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 of statements made by Pétrolia. Actual events or results could be significantly different. Accordingly, the decision to invest in shares of Pétrolia should at no time be based on such 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.