Petrolia Inc.
TSX VENTURE : PEA

Petrolia Inc.

July 06, 2010 13:34 ET

Petrolia Inc.: 7.7 Million Barrels Contingent Resources (Recoverable) at Haldimand (9-km2)

RIMOUSKI, QUEBEC--(Marketwire - July 6, 2010) -  Pétrolia (TSX VENTURE:PEA) is pleased to announce that in an audit based on data available as of December 31, 2009, Sproule Associates Limited has confirmed the initial estimate of oil resources in-place as well as the contingent portion of these resources. Sproule Associates(1), which is recognized internationally for its expertise in resource evaluation, states that "It is our opinion that in all material respects the Company's estimates have been determined and presented in accordance with the Canadian Oil and Gas Evaluation Handbook and are free of material misstatement." Thereby, on the single 9-km2 portion selected for assessment, the best estimate of the petroleum initially in place is 69.7 million barrels, and the contingent (potentially recoverable) resources amount to 7.7 million barrels.

According to the President of Pétrolia, André Proulx, "this rigorous validation of our estimates is very encouraging, since it covers only the 9-km2 area represented by the Haldimand property, whereas the structure extends beyond its border. From a commercial standpoint this volume of recoverable petroleum could potentially support a viable production operation. The presence of such an amount of recoverable petroleum in this structure alone raises the possibility of other significant discoveries in the Gaspé region, where Pétrolia holds a number of permits that are prospective for the discovery of petroleum".

Gross discovered(2) and contingent oil resources (unrisked)(3)
as estimated by Pétrolia and validated by Sproule
Haldimand property, Gaspé basin,
Gaspé peninsula, Quebec
As of December 31, 2009
(in barrels)
  Low (a) Best estimate(b) High (c)
       
Oil Initially-In-Place 21,900,000 69,700,000 198,100,000
Contingent Oil Resources 1,900,000 7,700,000 28,400,000
  1. The probability that the quantity actually in place is equal to or greater than the estimate is 90%.
  2. The probability that the quantity actually in place is equal to or greater than the estimate is 50%.
  3. The probability that the quantity actually in place is equal to or greater than the estimate is 10%.
  1. The audit is signed by Douglas J. Carsted, CD., P. Geol. and Vice-President Geoscience of Sproule Associates Limited.
  2. These are the gross in-place volumes estimated within the tested fault block within the Haldimand Property, without any adjustments for working interest or encumbrances.
  3. These are contingent resources, interpreted to exist based on seismic data, well logs, and well tests are defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using

In its report, Sproule indicates that:

  • the territory evaluated is in the initial stages of delineation of the structure, and the additional studies that will be performed later and their findings could necessitate a review of current evaluations;
  • this is a contingent resource, i.e. it is potentially recoverable from known accumulations using existing technologies or those under development. Unlike reserves, a contingent resource is not currently considered to be commercially viable for various reasons, including economic, legal, environmental, political and regulatory considerations or the lack of a market;
  • there is a 50% chance that the amount of petroleum in place is less than or greater than the best estimate;
  • the seismic data made available suggest that the structure extends beyond the territory to the northwest and therefore that there may be surplus oil accumulations.

The estimates of the amounts of petroleum initially in place and of the contingent resources, as well as Sproule's audit, are based on:

- log data from the Haldimand 1 and 2 wells;
- the analysis of the core collected from the Haldimand 2 well;
- data from tests performed in the wells;
- the 3D seismic survey performed on the structure;
- map data from the Haldimand zone;
- data from production tests performed on December 31, 2009 on the Haldimand 1 well.

Pétrolia has a 65% interest in the Haldimand property and Junex holds 35%. Under the agreement recently signed with Junex, Pétrolia now holds a 100% interest in the ground surrounding the Haldimand property.

The content of this press release was prepared by Bernard Granger, Chief Geologist, duly qualified NI 51-101, based on Sproule Associates Limited's report, "Audit of Resource Assessment, Haldimand Block, Gaspé Peninsula, Quebec (As of December 31, 2009)".

The content of this press release was checked and approved by Douglas J. Carsted, CD. Geol., Vice President of Sproule Associates Limited.

About Pétrolia

Pétrolia 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 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 50.1 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 Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.

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