Petrolia Updates Operations in Canada
Petrolia provided the following information on the work it is currently conducting in Eastern Quebec.
Haldimand: Production tests continue
Production testing at the Haldimand No. 1 well began in early summer. The well naturally (without assistance) delivers an average of ten barrels of light crude (53 degrees API) per day, with a back pressure of 7,000 kpa. This production is comparable to the natural productivity of wells drilled on other unconventional reservoirs elsewhere in North America. The information acquired is being used to determine the optimal manner of bringing the deposit into production, as part of the overall development of the Haldimand oilfield.
Haldimand: Magnetotelluric survey
Petrolia is currently carrying out a magnetotelluric survey on the Haldimand property. The data collected will enable the location of areas of salt water within the Haldimand structure, to specify the orientation of the fractures' system and to define the roof of coats saturated in oil. This work is designed to measure the resistivity variations in the geological coats by using the values of the magnetic field led by the telluric currents.
The measurements are made with small devices, some of which can be buried to depths of about one meter. Petrolia has obtained all necessary permissions from the owners of the properties where the work is being conducted.
Signature of an agreement with Investcan Energy
As mentioned during the press conference on July 22, 2010, Investcan Energy is performing a due diligence audit as a preliminary to signing the final agreement. This agreement will cover the Haldimand deposit and 13 exploration licenses held by Petrolia. In return for the $15-million investment announced earlier, Investcan Energy will acquire 50% of Petrolia's interest in the deposit together with the licenses covered by the agreement. Signature of the final agreement should take place in late September, as previously announced.
Drill campaign on Anticosti Island
In front of an important transportation costs increase associated to the necessity to use additional equipments, Petrolia and its partner agreed, at the end of July, to reduce the number of drillings from four to three. These wells have reached the total drilling depth on August 30, 2010. The results of this campaign will be later released by both partners.
Petrolia will continue to follow its program of operations in a strict and transparent manner, emphasizing local concerns and protection of the environment. The program's priorities are to bring the Haldimand deposit into production and to develop its other licenses in accordance with its undertakings to its shareholders and partners.
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