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.

Alexandre Gagnon
Executive Vice-President
(418) 657-1966
[email protected]

Myron Tetreault
(418) 657-1966
[email protected]

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
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...