Mr. Andre Proulx reports
PETROLIA AND ITS PARTNER SIGN FINAL AGREEMENT
Petrolia Inc. and Quebenergie have signed a partnership to bring theHaldimand oil field into production.To consolidate its role within theprovince, SCDM Energie, through itssubsidiary SCDM Investcan, created aQuebec-based subsidiary by the nameof Quebenergie Inc., with officesto be located in Quebec. This presencedemonstrates the company'slong-term commitment to Quebec and willcontribute to improvingsynergies with Petrolia.
Inreturn for a $15-million investment, of which $6.5-million has beenpaidto Petrolia and $8.5-million will be dedicated toexplorationactivities, Quebenergie acquires 50 per cent of Petrolia'sinterest inthe Haldimand discovery and in the 13 surrounding licences(2,500 squarekilometres). In addition to a solid financialbase, Quebenergie willcontribute additional technical expertise towardbringing the Haldimandoil field into production.
Subsequently,the costs will be shared equally between the partners. Inthe comingweek, the partners will finalize the 2011 work program.Petrolia will actas operator during the exploration phase, andQuebenergie will take overthis role in the commercial production phase.
"Webegin today the decisive stage in bringing the field intoproduction.While also making it possible to advance the project, thisagreementreflects Petrolia's desire to play a major role in theproject'sdevelopment. Both partners share a common vision for theproject, whichmust proceed with significant consideration given to thelocalenvironmental and social context," stated Andre Proulx,Petrolia'spresident. "Quebenergie's proposal for an agreementestablishing aparity of interest between the partners ended up being adeciding factorfor us, since it respected our wish to have a Quebeccompany play animportant role in the development of the project."