Petrolia Inc.
TSX VENTURE : PEA

Petrolia Inc.
Junex inc.
TSX VENTURE : JNX

Junex inc.
Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

May 07, 2008 08:20 ET

Petrolia Inc., Junex Inc., Gastem Inc.: The Haldimand Project Resumes

QUEBEC CITY, QUEBEC--(Marketwire - May 7, 2008) - Petrolia (TSX VENTURE:PEA), Junex (TSX VENTURE:JNX) and Gastem (TSX VENTURE:GMR) are pleased to announce the signature of a Joint Operating Agreement for the development of the Haldimand petroleum project. Subject to majority approval of the technical committee, the co-venturers will, over the next 12 months, carry out a $5,000,000 work program in order to better define the oil potential previously identified in the Petrolia-Haldimand #1 well.

Under this agreement, the co-venturers have created a 9-km2 joint development area around the Petrolia-Haldimand #1 well, in which Petrolia owns a 45% working interest, Junex a 45% working interest and Gastem a 10% working interest (the "Haldimand Project"). Junex' status as operator is confirmed for a minimum 2-year period from the execution of the agreement. The Haldimand Project is subject to a 5% overriding royalty payable to Terrenex Ventures Ltd/Questerre Energy Corp.; two-thirds (2/3) of the royalty being payable by Junex and the remaining third, being payable by Petrolia.

"It is an important day for our three companies since this agreement will allow us to develop the discovery announced on June 27, 2006. Our technical teams are already in the process of planning the next phase of work to be conducted as soon as possible" indicated the presidents of the three companies'.

Amendment to the Sale Agreement executed on July 13, 2005 between Petrolia and Junex

Furthermore, negotiations regarding the Haldimand Project led Petrolia and Junex to amend certain clauses of the Sale Agreement executed between the parties on July 13, 2005 (c.f. press release dated July 26, 2005).

Under this agreement, Junex has waived its back-in right as well as its right of first refusal in the exploration licenses comprising the Gastonguay and Gaspe properties (6,334 km2) held by Petrolia. For its part, Petrolia has waived its right of first refusal in the exploration licenses held by Junex in the Baie-des-Chaleurs and in the Taconic Front in the Gaspe region.

In counterpart, Petrolia and Junex became 50%-50% co-venturers in a block of licenses covering a corridor of about 291 km2 located between the Galt property and the Petrolia-Haldimand discovery well. Junex will be the operator in this area. Petrolia has granted to Junex a 0.5% to 2.5% royalty on the eventual production of hydrocarbons from the Gastonguay and Gaspe properties. Junex still owns 9.4% of the issued and outstanding common shares of Petrolia.

"We are very satisfied with this agreement which will allow our two companies to proceed with a work program to develop our petroleum projects in the Gaspe area. We are convinced that the agreement to waive the back-in and the first refusal rights will benefit both companies since it will facilitate the conclusion of exploration agreements with major companies " said Mr. Andre Proulx and Mr. Jean-Yves Lavoie, P.Eng., respectively President of Petrolia and Junex.

About Petrolia

Petrolia is a junior oil and gas exploration company that holds exploration rights on a total of 14 929 km2 (3,7 millions acres), an area which represents 21 % of the Quebec territory under licence. Mainly located in the Gaspe Peninsula and on Anticosti Island, these licences are considered as the most prospective lands, representing 70% of the Quebec petroleum onshore potential, Petrolia will now have a free hand to develop that potential with new partners and it intends to intensify its exploration program in the upcoming years. The company has 34 M outstanding shares and it owns 2.2% of the issued and outstanding shares of Gastem Inc. (TSX VENTURE:GMR).

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the Province of Quebec. Several recent discoveries in the United States and Eastern Canada have stimulated exploration in Quebec, whose sedimentary basin is located in a favourable geological setting for oil and gas discovery. Junex's strategy consists in entering into partnerships with other exploration companies in order to reduce exploration risks.. In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations. Junex also owns approximately 9.4% of the issued and outstanding shares of Petrolia (TSX VENTURE:PEA) and 1.3% of the issued and outstanding shares of Gastem (TSX VENTURE:GMR).

About Gastem

Gastem is a gas exploration and development company which holds exploration rights on more than 1 million acres of land in Quebec, interests in the Joly Project with Intragaz and also various projects in the North-East United States. The company has a working interest in 24 gas wells currently in production in the Amber Bank project, West Virginia. Gastem is mainly active and is a leader in the exploration and development project of the Utica Shales in the St-Lawrence Lowlands and the Appalachians in the State of New-York. In the coming weeks, the company expects to undertake important drilling projects in the State of New-York while leading many exploration projects in Quebec.

Forward looking statements

This news release contains certain forward-looking statements. These statements relate to future events or future economic performance of Junex, Petrolia and Gastem, and carry risks, uncertainties and other factors - both known and unknown - that may appreciably affect their respective results, economic performance or accomplishments when considered in light of the content or implications of statements made by Junex Petrolia and Gastem. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Junex, Petrolia and Gastem do not intend and undertake no obligation, to update these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Petrolia Inc.
    Mrs Isabelle Proulx
    Vice President
    Quebec: 418-657-1966 / Rimouski: 418-724-0112
    info@petroliagaz.com
    or
    Mr. Andre Proulx
    President
    418-724-0112
    president@petroliagaz.com
    www.petroliagaz.com
    or
    Junex inc.
    Mr. Jean-Yves Lavoie
    President
    418-654-9661
    or
    Mr. Dave Pepin
    Vice President - Corporate Affairs
    418-654-9661
    or
    Gastem Inc.
    Mr. Raymond Savoie
    President
    514-875-9034
    or
    Mr. David Vincent
    Corporate Affairs
    514-875-9034