QUÉBEC CITY, QUÉBEC--(Marketwired - March 7, 2014) - Pétrolia (TSX VENTURE:PEA) is disappointed with the decision of the City of Gaspe to appeal the court decision relating to the validity of its municipal by-law.
Since last November, Petrolia has worked with the Mayor of Gaspé in a joint effort to avoid having to rely on the courts. This included a deferral of the hearings that were originally scheduled for November to allow the Government of Quebec to proceed with the adoption of a Regulation relating to the protection of water. Unfortunately, the Government of Quebec did not respond to this joint request from Pétrolia and the City of Gaspé. We believed that the adoption of this regulation by the Government of Quebec would render the municipal regulation null and void. Pétrolia even offered several times to enter into an agreement with the City of Gaspé what would allow the harmonious development of the petroleum industry within its territory.
Pétrolia shares the objective of the City of Gaspé to protect its drinking water while allowing the development of the oil industry in Gaspé, in a manner that respects its citizens and the environment. We are convinced that we have demonstrated our good faith in working with the City to accomplish this.
For Pétrolia, the next step in Gaspésie is the drilling of the Haldimand 4 well. Despite the fact that hydrogeological experts confirmed that the City's drinking water could not be affected by this well, we agreed to wait for the hydrogeological report commissioned by the Government of Quebec. We have also confirmed, on many occasions, that this well does not involve hydraulic fracking. Haldimand 4 is a conventional horizontal well in which none of the substances used will present any issues of toxicity (toxicity study, press release dated February 26, 2013). As well, Pétrolia highlights that the distance between this well and the closest water well is greater than that required by the most stringent regulations in North America, including the draft regulation proposed by the Government of Quebec.
The Canadian petroleum industry is amongst the most advanced in the world. In 2013, approximately 11,000 wells were drilled in Canada, of which over 90% were horizontal or directional wells. It is unfortunate that one conventional drilling project has attracted so much attention. The decision is particularly disappointing, given the fact that the City of Gaspé would have received the answers to all of its questions relating to drinking water with the issuance of the hydrogeological study in March.
At the time of issuance of this release, Pétrolia is examining all of its available options.
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 that ensures its developments are done with respect for the communities in which it operates and in accordance with Quebec values, notably in regards to the protection of the environment. Pétrolia has 70 667 372 shares issued and outstanding.
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 does not intend and undertakes no obligation to update these forward-looking statements.
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