Petrolia: Estimates of 1 Tcf of Wet Natural Gas in Bourque

Pétrolia disclosed the results of a resource evaluation carried out by Sproule Associates Limited (Sproule) which estimates more than 1 trillion cubic feet (Tcf) or 1 thousand billion cubic feet of volume initially-in-place of wet natural gas of four prospects within the Bourque project. This project is located in forested Crown land, where Petrolia drilled two wells in 2012. This independent evaluation, was carried out at Petrolia's request, for the purpose of evaluating the Company's resource volumes according to the Canadian Oil and Gas Evaluation Handbook (COGEH) reserve and resource definitions that are consistent with the standards of National Instrument 51-101.

During drilling and testing operations, wet natural gas and traces of light oil have been recovered. This wet natural gas is rich in liquid petroleum gases (propane and butane), condensate (pentane, hexane, etc.). Log evaluation indicates the presence of a reservoir with vuggy type porosity associated with open fracture networks (Jan. 30 press release). Analyses of the tests show a conventional low permeability carbonate reservoir (tight gas carbonate reservoir). Carbonates of the Forillon Formation, which extend over large areas, and located close to major faults, such as the North West Arm Fault, constitute for Petrolia a promising exploration play in the Gaspé Peninsula.

To carry out its estimation, Sproule conducted an analysis of the petrophysical properties measured in both wells, and reviewed the interpretation of Petrolia's 3D seismic data. Sproule also generated various 3D seismic attribute volumes in order to identify possible zones of hydrothermal alteration "prospective" for porosity development. The territory between wells Bourque 1 and Bourque 2 has not, for the time being, been considered in the resource estimate carried out by Sproule.

Resources of four prospects in the low permeability carbonates of the Forillon Formation have been evaluated. Results for each of these prospects are shown in the following table. The report indicates that the data do not allow an estimation of the liquid hydrocarbon volumes (condensate and light oil) whose commercial value is higher than that of dry gas.

Petrolia is presently in the process of preparing a production test program for these two wells, based on Sproule's recommendations. The objective of these production tests will be to quantify the production characteristics of the Forillon Formation and better delineate the in-place resources and potential recoverable volumes.