MONTREAL, QUEBEC--(Marketwire - July 9, 2008) - Gastem (TSX VENTURE:
GMR -
News)is pleased to announce that it has obtained the exploration permit tothe Magdalen Islands, situated in the Gulf of St. Lawrence. The permitcovers approximately 20,000 ha and is situated in the heart of as yetuntested major source/reservoir structures.
TheMagdalen Islands are situated in the Magdalen Basin which contains alarge number of giant saliferous structures of the type found in theGulf of Mexico. The Basin is believed to be one of the largestpotential areas for natural gas in Eastern Canada and has beenevaluated as having a low risk to reward ratio. The saliferousstructures on which are lying the Magdalen Islands originate fromevaporites of the lower Carboniferous Windsor Group. The upperCarboniferous rocks (interbedded sandstones and shales) are cut bythese structures, creating a potential combination of traps andreservoir rocks for the natural gas generated in the underlyingformations.
The Basin extends from the middle of the Gulfsouthward, including the Old Harry mega-structure to producing fieldsin New Brunswick westward. The Magdalen Islands are central to thisBasin and have been the site of numerous gas occurrences, variousstudies and seismic programs but has not otherwise been the subject ofa completed drilling program. Previous estimates of gas potential forthe Magdalen Islands area are being reviewed by Gastem.
Atpresent, Gastem is undertaking a detailed review of existinginformation and preparing a NI 51-101 compliant technical report. Oncethe review and report completed, the Company will present to the Boardan exploration program for approval.
"The gas potential of theIslands and the Basin will be a major source of interest in the comingmonths," said Chairman and CEO Raymond Savoie. "Combined with our Uticashale projects in Quebec and New York, the Magdalen Islands gives theCompany increased momentum for growth and development."
Gastem isan independent oil and gas exploration company based in Montreal. Thecompany holds exploration and storage rights to over 1.1M acres of landin the St. Lawrence Lowlands and the Gaspe Peninsula in Quebec. GastemUSA is a wholly owned subsidiary of Gastem and has an option to acquirea 65% interest in properties situated in New York State and hasrevenues from a minority participation in the Amber Bank shale gasproject in West Virginia. Other development projects are beingevaluated.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.