2010 Anticosti Drilling Program Completed

Petrolia reported that the 2010 oil exploration program on Anticosti Island has been completed and that preparations are being made to remove the drilling and related equipment from the island commencing this week. Three wells have been drilled to evaluate the oil potential of the Trenton/Black River Groups (TBR) and Mingan Formation in the Jupiter, Chaloupe and Saumon prospects located in the east central part of the island.

The Jupiter well was a re-entry of the Corridor/Hydro-Quebec Jupiter well and was drilled directionally to a total measured depth of 2038 meters in an attempt to encounter dolomitized and fractured carbonates in the Mingan and Romaine formations. The well encountered live oil shows in the Mingan Formation but no significant reservoir potential, and has been abandoned. Corridor Resources Inc. operated the well and has a 75% working interest in the well, with Petrolia holding 25% working interest.

The Chaloupe well was drilled to a total measured depth of 1639 meters, with a sub-horizontal leg in the Black River section. The well encountered only minor dolomitized carbonates with no apparent reservoir development. Another key objective for this well was to core part of the oil bearing Macasty shale overlying the Trenton Formation. Approximately 27 meters of conventional core were recovered and analysis of the reservoir character and fluid content of the core has commenced. The oil-prospective Macasty shale is present across virtually the entire island, with Corridor and Petrolia holding approximately 900,000 and 600,000 net acres respectively (1.5 million net acres combined) in this emerging unconventional oil play. Corridor and Petrolia have commenced activities aimed at attracting a knowledgeable shale oil player to farm-in on this play, and initial interest by several potential players has been strong, due in part to the large area covered by this unconventional oil play. The deeper formations in the Chaloupe well have been abandoned, with the upper section of the well being suspended for potential future shale oil related activities. Corridor and Petrolia each hold a 50% working interest in the Chaloupe well, with Petrolia acting as operator.

The Saumon well was drilled to a total measured depth of 1223 meters, with a sub-horizontal leg in the Black River section. The well encountered only minor dolomitized carbonates but had very permeable reservoir development in fractured Black River carbonates. The well flowed a total of 47 cubic meters of salt water to surface, including an initial flow of 27 cubic meters (170 bbls) in the first 45 minutes. The high apparent permeability of reservoir development encountered, while water bearing in this well, is encouraging for future oil exploration in the area. The deeper formations in the Saumon well have been abandoned, with the upper section of the well being suspended for potential future shale oil related activities. Corridor and Petrolia have working interests of 75% and 25% respectively in the well, with Corridor acting as operator.

While exploration results to date on Anticosti Island are so far disappointing, the presence of live oil shows and permeable reservoir development combined with the very large number of prospects are positive factors for future oil exploration on the island. Furthermore, Petrolia is confident that the new shale oil play will be developed on Anticosti Island.

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