QUEBEC CITY, QUEBEC–(Marketwired – Sept. 1, 2015) – Pétrolia (TSX VENTURE:PEA) is pleased to announce that a letter has been signed confirming that Ressources Québec Inc. (“Ressources Québec“) intends to invest, as an agent of the Quebec government, in Pétrolia’s share capital with a private placement totalling $3.8 million for the first phase of the project. This investment is made up of a private equity investment in Pétrolia’s share capital or, as the case may be, in the Bourque Project via a joint venture. This investment will be combined with the interest shown by our partner Tugliq Energy Corporation (“Tugliq Energy“) in directly investing $2.7 million in the Bourque Project via a joint venture.
Work on the first phase of the resource confirmation program, namely completing Bourque 1 and conducting some additional drilling, is set to begin within the next few weeks. The program will allow Pétrolia to alongside Tugliq Energy to carry out a liquid natural gas (LNG) extraction and liquefaction pilot project that will generate revenue for Pétrolia.
This announcement is the first step in the Tugliq project to put in place an LNG distribution chain to replace the diesel used by Côte-Nord industries with natural gas. These industries will benefit economically and environmentally. The Bourque project will also generate jobs and significant economic spinoffs for the Gaspé region, set to be the starting port for LNG shipping routes.
Pétrolia CEO Alexandre Gagnon said, “With this double investment of the Investissement Québec partnership on Anticosti, I feel that we have the support of the Quebec government to go beyond exploration and start production of hydrocarbons that can finally be labeled Made in Quebec.”
Tugliq’s capital participation would make it a partner in both gas distribution and extraction.
“Thanks to the support of the Quebec government and Tugliq Energy, this work program will enable us to launch a gas delivery pilot project starting next year that could generate the first revenue for Pétrolia. I’m very excited for our company and proud of our gas distribution partnership with Tugliq Energy,” said Pétrolia president and CEO Alexandre Gagnon.
These investments are subject to the standard conditions for such investments, particularly due diligence, the signing of applicable agreements, and the necessary approval from institutions including the TSX Venture Exchange. The price of securities to be purchased by Ressources Québec will be negotiated. The terms and conditions of this agreement remain to be finalized and will comply with oil and gas industry standards. The $3.8 million investment from Ressources Québec will keep its participation in Pétrolia under the 20% share capital threshold.
Pétrolia is a junior oil and gas exploration company that owns interests in a 16,000 km² (4 million acres), representing close to 23% of the land in Quebec under permit. A partnership with Anticosti Island led to the creation of Anticosti Hydrocarbons LP, in which Pétrolia has a 21.7% stake. In order to streamline operations, Pétrolia Anticosti Inc.–a subsidiary of Pétrolia–was put in charge. Pétrolia is a Quebec company that aims to produce oil from here, by the people here, for here. Pétrolia has 80,345,195 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 of 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 responsibility for the adequacy or accuracy of this release.
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