Petrolia Inc.

Petrolia Inc.

August 05, 2015 08:30 ET

Petrolia: New Outlook for the Bourque Project

QUÉBEC CITY, QUEBEC--(Marketwired - Aug. 5, 2015) - Pétrolia (TSX VENTURE:PEA) announced today the development of a resource confirmation program for the Bourque Project to follow up on the results obtained during the merging of the 2008 3D seismic data and data gathered during 2012 drillings (reprocessing). This program has been established thanks to the financial participation of our partner, Tugliq Energy. The evaluation work planned within this program is a first step to ensure the implementation of the government's desire to complete the assessment of Gaspésie's natural gas potential, as expressed in the 2015-2016 budget speech. Back in April 2013, the Company disclosed the results of a resource assessment performed by Sproule Associates Limited (Sproule) that estimated at more than 1 Tcf (one trillion cubic foot) the volume of wet natural gas initially-in-place in four Bourque project "prospects".

Alexandre Gagnon, CEO of Pétrolia, thinks that this project will generate new local economic development opportunities while also translating the government vision into reality. "For Pétrolia, the Bourque project is a unique opportunity to support the economic development of regions, participate in the maritime strategy, promote the Plan Nord and help the government achieve its GHG emission reduction targets. The Bourque project could, as soon as next year, generate substantial revenues"

The reprocessing and interpretation of the seismic data of the Bourque property, located 30 km east of the City of Murdochville, have now been completed. This 3D seismic survey performed in 2008 covers an area around 65 km². At the time, the interpretation of this data enabled the choice of sites for two wells drilled in 2012 at Bourque.

The 3D seismic data provides three-dimensional visualizations of the subsurface geology. The geophysicist can then define the properties of these geological formations from this dataset and map structures most likely to contain hydrocarbons.

The objective of the initial analysis was to optimize the seismic data according to depth objectives. Following the discovery of wet gas in the Forillon formation, at shallower depth than initial objectives, the reprocessing of 3D seismic data has been performed to optimize data, according to the Forillon reservoir, by integrating the acoustic and density logs from the two wells drilled in 2012. This reprocessing enabled the company to gain a better understanding of the specific seismic features of the reservoir as well as to identify with more precision its geophysical attributes and better define its thickness and spatial distribution. This new interpretation helps to better visualize the natural fracture networks distributed on both sides of the North-West Arm Fault and make connections between the different prospects identified in the Sproule report.

The Bourque project has generated interest from various stakeholders in the Gaspesian community while also garnering the support of local municipalities, including Murdochville, Gaspé and Grande-Vallée. Pétrolia has partnered with Tugliq Energy on this project to implement a maritime liquefied natural gas supply chain to bring the potential gas production from Gaspésie to Côte-Nord customers and export markets.

Based on these encouraging new results and with the objective to support the government in its desire, Pétrolia and Tugliq will very soon apply for a permit to complete additional evaluation work on the Bourque project.

About Pétrolia

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 almost 23% of the Québec territory under lease. The closing of a partnership on Anticosti Island has led to the creation of Anticosti Hydrocarbons L.P., a limited partnership in which Pétrolia holds a 21.7% interest. In order to carry out the project's operations, Pétrolia Anticosti Inc., a subsidiary of Pétrolia, was designated project operator. Pétrolia is a Québec company whose objective is to develop oil fromhere, by the people here, for here. Pétrolia has 80 345 195 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 or statements made by Pétrolia. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Pétrolia disclaims any intention or obligation to update these forward-looking statements.

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