|By Marketwired .||
|September 5, 2013 10:17 AM EDT||
RIMOUSKI, QUEBEC -- (Marketwired) -- 09/05/13 -- Petrolia (TSX VENTURE:PEA) and Hydro-Quebec disclose today the full terms of the agreement signed on January 22, 2008 with Hydro-Quebec. The work realized under this agreement has allowed the identification of a significant petroleum resource on Anticosti Island whose best estimate (P50) is 34 billion barrels of oil undiscovered initially-in-place (press releases of June 29, 2011 and July 11, 2013). This oil resource opens the way to important economic development for Quebec and for Petrolia.
The main terms of the agreement are the following:
-- Hydro-Quebec assigns all its rights and obligations in 35 permits to explore for oil on the Anticosti Island, being: -- a 50% interest in 29 permits -- a 25% interest in 6 permits -- Petrolia grants to Hydro-Quebec: -- a priority fee (on the portion of the interests assigned) on the possible oil production. This fee is equal to: -- 1% on the first 3 million barrels of oil produced; -- 2% on the portion between 3 and 10 million barrels of oil produced; and -- 3% on the portion which exceeds 10 million barrels produced. -- a right of first refusal to participate at the stage of development of a commercial hydrocarbon discovery up to 50% of any interest offered to a third party. The exercise of this option will not allowed Hydro-Quebec to his right to a priority fee. -- An hypothec of $10 million dollars to guarantee the payment of the priority fee -- An amount of $460,000 to obtain the right to use seismic data of Hydro- Quebec.
The entire agreement is available on the Internet site of Petrolia at the following address: http://petroliagaz.com/
Petrolia 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 Quebec territory under lease. The leases, the majority of which are located on the Gaspe Peninsula and Anticosti Island, are considered to be very promising and represent almost 71% of the territory under lease for which there is land-based oil potential in Quebec. Petrolia has 69 431 372 shares issued and outstanding and has a working capital of $ 4,000,000.
Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Petrolia 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 Petrolia. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Petrolia 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.