Welcome!

News Feed Item

Petrolia Announces the Closing of the Anticosti Transaction

QUEBEC CITY, QUEBEC -- (Marketwired) -- 04/01/14 -- Petrolia (TSX VENTURE:PEA) announces that it has closed the Anticosti transaction originally disclosed on February 13, 2014. The closing of this transaction has resulted in the creation of a limited partnership that will own and operate the interests on Anticosti Island that were previously held by Petrolia and Corridor Resources Inc. The following is a list of the limited partners and their ownership percentages:


  ------------------------------------------------------------------------
  ------------------------------------------------------------------------
                Partners                    Percentage Participation      
  ------------------------------------------------------------------------
  ------------------------------------------------------------------------
  Ressources Quebec                                   35 %                
  ------------------------------------------------------------------------
  Petrolia Inc.                                      21.7 %               
  ------------------------------------------------------------------------
  Corridor Resources Inc.                            21.7 %               
  ------------------------------------------------------------------------
  Saint-Aubin E&P (Quebec) Inc.                      21.7 %               
  ------------------------------------------------------------------------

The board of directors of the general partnership is composed of one member appointed by each partner. The limited partners shall also choose an independent director in the next few weeks. Mr. Myron Tetreault will be the director appointed by Petrolia.

The board of directors has established an Operations Committee to supervise ongoing work of the Partnership, which committee will be chaired by Mr. Alexandre Gagnon, Executive Vice-President of Petrolia, as well as an advisory Technical Committee which will be chaired by Mr. Gildas Collin, Petrolia's Chief Operating Officer. The partnership has also established a Health, Safety and Environmental Committee and a Local Acceptability Committee. These committees are composed of an equal number of representatives from each partner.

Details of the transaction

For the purposes of the transaction, the value of the exploration permits has been determined to be $100 million. Ressources Quebec and St-Aubin E&P have undertaken to finance up to $100 million of exploration work, divided into two investment phases. Ressources Quebec has undertaken to invest up to $56.67 million in exchange for a 28.3% interest and St-Aubin E&P has undertaken to invest up to $43.33 million for a 21.7% interest. In order to ensure identical participation by the three public companies and a 35% participation by Ressources Quebec, Petrolia and Ressources Quebec have paid $1.9 million and $13.3 million, respectively, to Corridor Resources. Following these transactions the parties have the following interests in the Partnership: Ressources Quebec 35 %, Petrolia 21.7%, St-Aubin E&P 21.7% and Corridor Resources Inc. (CDH-TO) 21.7%.

Next Steps

The first phase of the exploration program shall begin this summer and continue for the next two years. It will initially include 15 to 18 stratigraphic survey wells, aimed at increasing understanding of the local geology. These coreholes will help identify the best locations for the three horizontal petroleum wells to be drilled in the second phase of the program, for an estimated cost of $55 million up to a maximum of $60 million.

The financial advisors for Petrolia and Corridor in this transaction were National Bank Financial. Petrolia's legal advisors were Davies, Ward, Phillips & Vineberg LLP., Colby, Monet, Demers, Delage & Crevier LLP. and ParleeMcLaws LLP. The transaction is subject to the final approval of the TSX Venture Exchange.

A Significant Advance

According to Myron Tetreault, President and CEO of Petrolia: "We are tremendously pleased to announce the completion of this transaction, which is an important step forward for our company, for the industry and for the Province of Quebec."

"The Quebec petroleum industry has been dormant for a while and the closing of this transaction represents the impetus that our sector needs to restart on a solid footing," stated Mr. Alexandre Gagnon, Executive Vice-President.

About Petrolia

Petrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 16,000 km2 (4 million acres), which represents about 22% of the Quebec territory under lease. Petrolia is a Quebec company which ensures that development respects local communities and Quebec values. Petrolia has 70,667,372 shares issued and outstanding.

About Corridor

Corridor is an Eastern Canadian junior resource company specializing in oil and gas exploration and development onshore in New Brunswick, P.E.I. and Quebec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas production and reserves in the McCully Field near Sussex, New Brunswick and, in 2008, it discovered oil reserves in the Caledonia Field near Sussex, New Brunswick. In addition, Corridor has contingent and confirmed shale gas resources in Elgin, New Brunswick.

About Ressources Quebec

As a subsidiary of Investissement Quebec, Ressources Quebec is the gateway for companies seeking to invest in the mining and oil and gas industries. Ressources Quebec supports resource companies at every stage of their projects, from exploration and development through to processing. It offers a full range of financial products, including investments in equity, debentures and various types of loans.

About St-Aubin E&P

Saint-Aubin E&P (Quebec) Inc., a wholly-owned subsidiary of Saint-Aubin Energie SAS, is a corporation jointly founded by Maurel & Prom and MPI in 2013 in order to diversify the assets of the two founding companies. The head office of Etablissements Maurel & Prom and MPI is located in Paris. The two companies have a combined market capitalization of approximately EUR1.8 billion. They are active in the field of onshore and offshore oil and gas production in 10 countries on four continents. Their management teams are comprised of professionals with strong track records in the oil and gas industry.

Forward-looking statements

Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Petrolia and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications of statements made by Petrolia. Actual events or results could be significantly different. Accordingly, the decision to invest in shares of Petrolia should at no time be based on such statements. Petrolia does not intend and undertakes no obligation to update these forward-looking statements.

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Digitization is driving a fundamental change in society that is transforming the way businesses work with their customers, their supply chains and their people. Digital transformation leverages DevOps best practices, such as Agile Parallel Development, Continuous Delivery and Agile Operations to capitalize on opportunities and create competitive differentiation in the application economy. However, information security has been notably absent from the DevOps movement. Speed doesn’t have to negat...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...