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Petrolia
Inc. (TSX VENTURE:PEA - News) and Corridor Resources Inc. (CDH - TSX) are pleased
to announce the results of Macasty shale core and petrophysical analyses from the Petrolia/Corridor Chaloupe #1 well on Anticosti Island. Petrolia and
Corridor hold licenses covering more than 1.5 million acres on Anticosti
Island that is underlain by the Macasty shale. The Macasty shale is the lateral equivalent of the Utica
shale that occurs through the Quebec and into New York.
A
twenty-seven meter Macasty core was cut during the
2010 summer drilling program and analyzed by Weatherford Labs in Houston and
Global Geoenergy Research Ltd in Halifax. This data
was incorporated by Schlumberger Canada into a petrophysical
program that calculates shale reservoir properties.
The
following table shows the results of the full diameter core cut in the Macasty of the Chaloupe well.
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Core Parameters
Macasty Shale
Mineralogy (Average %)
Quartz 37, Carbonate 25, Clays
21,
Other 17
Macasty Total Thickness
40 m (131 ft)
Total Matrix Porosity
3.1 to 6.3% (Ave 4.9%)
Oil Saturation
35.2 to 48.3% (Ave 41.9%)
Gas Saturation
1.0 to 14.7% (Ave 5.0%) (1)
Water Saturation
41.5 to 63.8% (Ave 53.1%) (2)
Desorbed Gas Content (Ave)
41 scf/ton
Total Organic Carbon (TOC) 1.9 to 3.87 wt% (Ave 2.97 wt%)
Maturity
0.55 (Ro %) (3)
Main Kerogen Type
Type II
Oil Gravity
35+ API
(1) Gas underestimated due to lack of pressure preservation
(2) Water saturation is overestimated as it includes water
expelled from clays within the shales
(3) Ro suppressed by high oil saturation
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These
results are positive indicators that the Macasty
shale may be a potential tight oil producing formation as described below:
1. An average Total Organic
Carbon (TOC) of 3% indicates a rich source
rock. Global Geoenergy (geochemical consultants) advises that the
vitrinite
reflectance (Ro) and Thermal Alteration Indices (TAI) data
indicate that the rocks
in the Chaloupe # 1 well should be within the
early part of the
mature oil window. This oil maturity is supported by
rock evaluation data
(Tmax and S2) generated by Weatherford Labs.
2. The average oil saturation is
42% and the total hydrocarbon saturation
(plus gas) is 47%,
which indicates a relatively high oil concentration.
The desorbed gas
content indicates a reasonably high gas-to-oil ratio
that can assist in
the potential resource recovery.
3. The matrix porosity averages nearly
five percent, which is a positive
indicator for
potential resources initially in place.
4. The mineralogy indicates that
the rocks should be favorable for fracing
due to the high
quartz and carbonate content and the low clay content.
Petrolia
and Corridor engaged Schlumberger Canada to analyze the petrophysical
logs using the results from the core analysis to calibrate the logs.
Schlumberger computed an average porosity and an average
oil saturation for the Macasty and English Head
formations in the Chaloupe #1 well. Schlumberger
calculated high hydrocarbon saturations (80%) and porosities (6% effective)
in the Macasty Formation, with saturation and
porosity declining in the overlying English Head Formation. These results are
positive indicators for the potential of significant oil in place within the Macasty shale.
Nineteen
of the twenty wells drilled across Anticosti Island have intersected the Macasty shale. However, the quality of those shale
intersections has not been evaluated from a resource in place context.
Petrolia
and Corridor will be actively evaluating their joint venture options
regarding further exploration and determination of resource potential, in
order to ensure that optimal shareholder value is obtained from the ongoing programs.
The Anticosti exploration program is at an early stage; further work is
required to determine the potential for commercially viable resource
recovery, prior to proceeding to the development phase.
About
Petrolia
Petrolia
is a junior oil and gas exploration company which owns interests in oil and
gas licenses covering 15,000 km2 (2.7 million acres), which represents about
17% of the Quebec territory under lease. The leases, the majority of which
are located on the Gaspe Peninsula and Anticosti Island, are considered to be
very promising and represent almost 70% of the territory under lease for
which there is land-based oil potential in Quebec. Petrolia has 50 million
shares issued and outstanding.
About
Corridor
Corridor
is a junior resource company engaged in the exploration for and development
and production of petroleum and natural gas onshore in New Brunswick, Prince
Edward Island and Quebec and offshore in the Gulf of St. Lawrence. Corridor
currently has reserves of natural gas at the McCully
Field near Sussex, New Brunswick and shale gas resources in the adjacent
Elgin sub-basin. In December 2009, Corridor entered a joint venture to
appraise and potentially develop its significant shale gas resources in the
Elgin area.
Forward
Looking Statements
This
joint press release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as
"forward-looking statements") within the meaning of Canadian
securities laws. All statements other than statements of historical fact are
forward-looking statements. Forward-looking information typically contains
statements with words such as "anticipate", "believe",
"plan", "continuous", "estimate",
"expect", "may", "will", "project",
"should", or similar words suggesting future outcomes . In
particular, this press release contains forward-looking statements pertaining
to the following; the characteristics of the Macasty
shale as a potential shale oil producing formation, further exploration and
determination of resource potential, and optimization of shareholder value
from ongoing programs.
Undue
reliance should not be placed on forward-looking statements, which are
inherently uncertain, are based on estimates and assumptions, and are subject
to known and unknown risks and uncertainties (both general and specific) that
contribute to the possibility that the future events or circumstances
contemplated by the forward-looking statements will not occur. These factors
include, but are not limited to: risks associated with oil and gas
exploration, financial risks, substantial capital requirements, bank
financing, government regulation, environmental, prices, markets and
marketing, issuance of debt, variations in exchange rates and hedging.
Further information regarding these factors may be found under the heading
"Risk Factors" of Corridor's and Petrolia's annual information form
and most recent management's discussion and analysis. Readers are cautioned
that the foregoing list of factors that may affect future results is not exhaustive.
There can be no assurance that the plans, intentions or expectations upon
which forward-looking statements are based will in fact be realized. Actual
results will differ, and the difference may be material and adverse to
Corridor and Petrolia and their respective shareholders.
Forward-looking
statements are based on Corridor's and Petrolia's current beliefs as well as
assumptions made by, and information currently available to, Corridor and
Petrolia concerning anticipated financial performance, business prospects,
strategies, regulatory developments, future natural gas and oil commodity
prices, exchange rates, future natural gas production levels, the ability to
obtain equipment in a timely manner to carry out development activities, the
ability to market natural gas successfully to current and new customers, the
impact of increasing competition, the ability to obtain financing on
acceptable terms, and the ability to add production and reserves through
development and exploration activities in addition to the arrangement between
Corridor and Petrolia. Although management considers these assumptions to be
reasonable based on information currently available to it, they may prove to
be incorrect. The forward-looking statements contained in this press release
are made as of the date hereof and neither Corridor nor Petrolia undertakes
any obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law. The
forward-looking statements contained herein are made as at the date hereof
and are expressly qualified by this cautionary statement.
Neither
the TSX Venture Exchange nor its regulation services provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contact:
Andre Proulx
Petrolia Inc.
President
418-724-0112
president@petroliagaz.com
www.petroliagaz.com
Isabelle Proulx
Petrolia Inc.
Vice-President
Quebec City: 418-657-1966
info@petroliagaz.com
Phillip Knoll
Corridor Resources Inc.
President
902-406-8005
902-429-0209 (FAX)
www.corridor.ca
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