Petrolia Spuds Haldimand No. 2 Well in Quebec

Pétrolia announced that the well Pétrolia Haldimand No. 2 was spudded at 9:00 am on Friday, September 18. Located about 3.5 km southwest of the town of Gaspé and 1 km from the No. 1 well, the well should reach a minimum depth of 1,170 meters, and Pétrolia expects that the drilling operations and subsequent testing will last about 45 days.

The well's first objective is to confirm the lateral extension of the petroleum-producing zones previously encountered in the Pétrolia Haldimand No. 1 well, but in a much more structurally favorable position, i.e., about 120 m higher in the formations. Although the continuity of the zones can already be inferred from the results of the 3-D seismic survey carried out on the property in the Fall of 2008, only a well can demonstrate the presence of hydrocarbons. Thanks to more advanced analytical techniques, this well should provide answers to a number of questions raised by the No. 1 well, and then lead to the establishment of a plan for the Project's development and commercial production.

The Pétrolia Haldimand No. 2 well will be drilled using Savanna Drilling's No. 635 rig, which will first drill a 311 mm diameter hole to a depth of about 210 m, thereby enabling the installation and cementing of a 244 mm diameter casing from the surface,. Once the blowout preventers have been connected to this first casing, drilling will continue at a diameter of 216 mm to a depth of about 780 m. At this depth, an additional 178-mm diameter casing will be cemented into place. Drilling will then continue at a diameter of 152 mm, down to the final depth.

Throughout the drilling, senior geological staff will continuously examine the drill cuttings so as to accurately identify the zones that are likely to produce hydrocarbons, and will compare them with the producing zones in the first well. When the well is completed, a series of recordings will be made of the properties of the various geological formations, and production tests will be carried out on the most promising zones.

Under an agreement with its partners, Pétrolia is now the operator for the Haldimand Project, and is solely responsible for the cost of drilling this well. Once the well is completed, the respective interests of the parties, adjusted for the anticipated drilling costs,, will be as follows: Pétrolia, 55.1 %, Junex, 35.4 %, and Gastem, 9.5 %.



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