Gastem Reports on Single Frac Completions in Quebec

Gastem reported the initial test results of the single frac completions at La Presentation No1 and St-Hyacinthe No1 vertical wells, on the 37,247 hectare St-Hyacinthe property, in the St. Lawrence Lowlands, Quebec. Both vertical test wells, the first Utica Shale wells on this property, were drilled to the Trenton Limestone and were successfully cored in the Utica Shale.

The wells were cased and the first of several target intervals in the Utica was fracture stimulated in both wells by the operator, Canbriam Energy. The drill cuttings and logs confirmed projections that there is an increase of up to 30% in the thickness of the Utica south from the Yamaska fault, through Gastem's contiguous acreage to the region surrounding these test wells.

The initial completion work and testing was performed in a small section of the total gas bearing interval of both vertical wells and flowed for approximately 15 days. The St-Hyacinthe completion flowed at an encouraging instantaneous gas rate of 1.8 mmcf /day and an extended stable flow rate over 200 mcf/day. The La Presentation completion saw interference with what is believed to be near-by faulting, but still flowed at a sustained rate of 100mcf/day. The gas shows during drilling at La Presentation were very strong and with optimization of the completion results should be equal to or better than the St- Hyacinthe No1 result. The wells were shut in for buildup and to record bottom hole pressure data on December 8th, 2009. Recorders were retrieved and downloaded on January 28th and clearly demonstrate that this source rock is significantly over pressured. Gastem and its partner continue to evaluate these results and additional vertical potential in these wellbores.

Mr. Raymond Savoie, President and Chief Executive Officer of Gastem, commented, "The sustained flow-back performance for these single fracs demonstrates improvements have been made with the fracture stimulation program. The next steps will be to continue testing other intervals in the gas column and working towards optimizing the stimulation technique for the most prospective intervals."



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