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 its subsidiary SCDM Investcan, created aQuebec-based subsidiary by the name of Quebenergie Inc., with officesto be located in Quebec. This presence demonstrates the company'slong-term commitment to Quebec and will contribute to improvingsynergies with Petrolia.
In return for a $15-million investment, of which $6.5-million has beenpaid to Petrolia and $8.5-million will be dedicated to explorationactivities, Quebenergie acquires 50 per cent of Petrolia's interest inthe Haldimand discovery and in the 13 surrounding licences (2,500 squarekilometres). In addition to a solid financial base, Quebenergie willcontribute additional technical expertise toward bringing the Haldimandoil field into production.
Subsequently, the costs will be shared equally between the partners. Inthe coming week, the partners will finalize the 2011 work program.Petrolia will act as operator during the exploration phase, andQuebenergie will take over this role in the commercial production phase.
"We begin today the decisive stage in bringing the field intoproduction. While also making it possible to advance the project, thisagreement reflects Petrolia's desire to play a major role in theproject's development. Both partners share a common vision for theproject, which must proceed with significant consideration given to thelocal environmental and social context," stated Andre Proulx, Petrolia'spresident. "Quebenergie's proposal for an agreement establishing aparity of interest between the partners ended up being a deciding factorfor us, since it respected our wish to have a Quebec company play animportant role in the development of the project."