2010: Leader in petroleum production
In 2009 the Company focused its efforts on confirming the Haldimand discovery and initiating similar projects. 2010 will mark the beginning of production and is expected to be a pivotal year in the Company's activities.
2010 will be a turning point for Pétrolia. Already fully familiar with hydrocarbon exploration, the Company will be taking its first steps in the production of petroleum. This beginning will of course be a modest one, since only three wells will be involved. However, Pétrolia intends to step up its work program by pursuing both the development of the Haldimand field and the assessment of the Pétrolia-Tar Point No. 1 Well. It should be noted that this will be the first significant commercial production not just for Pétrolia, but indeed for Québec as a whole. This production will of course generate income for the Company, but it will also have a snowball effect: publicity about Pétrolia's will put it in a good position to negotiate new partnerships and thereby to expand its exploration efforts, thus in turn increasing its chances for new discoveries.
Petroleum exploration in the Gaspé region has never before reached this level of understanding and advancement. The information acquired will therefore open the door to a more wide-ranging exploration of the area. Pétrolia is resolved to move ahead in 2010 and develop its discoveries. It also aims to intensify its exploration efforts; in fact, a number of exploration targets are ready for drilling. To summarize, 2010 will mark the beginning of our production history.
2009: Concentrating its efforts
Progess on the Haldimand project
In 2009, the Company brought all its efforts to bear on advancing the Haldimand Project, so as to bring this petroleum discovery into production as quickly as possible. With this in mind, Pétrolia seized the opportunity to become the operator for Haldimand and to increase its share of the project from 45 to 65 % by acquiring 10 % of Gastem's interest and 10 % of the interest held by Junex. In September 2009 the drilling of the Pétrolia-Haldimand No. 2 Well confirmed that the project possessed all the requirements for becoming a profitable producing oilfield.
Financing of seven million dollars
Pétrolia began its drilling campaign (Haldimand No. 2 and Tar Point No. 1) with cash resources of $5.4 M. With positive results from the drilling operations and the forthcoming assessment work (production test), Pétrolia needed to consider new financing before moving to the production stage. The $7 M acquired will be used to undertake the assessment work necessary to determine the level of production.
Tar Point Drilling
The results obtained from the Pétrolia-Tar Point No. 1 well confirm the high potential for oil and gas developments in the Haldimand Corridor. Pétrolia can now extend its exploration work to cover the whole Haldimand Corridor, with excellent chances for success.
Energy to share
Over more than a century the people of Gaspé have witnessed recurring surges of exploration for hydrocarbons. Pétrolia has been working in the region for nearly five years, and expects to be there for many more. Believing that the acceptance and welcome accorded to a project always begin with open communications, Pétrolia invited the local population to an open day event while drilling Tar Point No. 1. Nearly 300 people accepted the invitation. Grown-ups and children, all of them curious, came to see the drilling equipment in action and to learn about the various stages in drilling a well. Pétrolia is proud to be one of the very few oil companies to have undertaken this kind of initiative on such a large scale.
Asset consolidation
At this stage in its development, the majority of the Company's assets consist of exploration leases, which provide the foundation on which the Company's exploration program is built. Pétrolia needs to keep them in good standing, because a petroleum discovery backed up by large areas under lease will always attract a lot of interest. In 2009, Pétrolia was able to renew its leases, which will allow it to continue to explore its vast holdings for an additional period of nine years (subject to complying with the terms on which the leases are issued). This renewal secures the Company's assets by enabling it to concentrate its financial forces on developing and producing from its discoveries over the next few years, rather than on seeking new targets for exploration. An energic teamIf Pétrolia was able to achieve its 2009 objectives, this was in large part due to the unremitting work of its team. Since 2005 the Company has endeavoured to build a multidisciplinary team with international experience in oil and gas exploration. Now that is about to become a producing company, Pétrolia must ensure that its corporate strategies are directed towards achieving its production objectives. Accordingly, in 2009 Pétrolia increased its board of directors by adding new members who possess relevant experience in the petroleum industry in the areas of management, administration, and financing.
2008: A year dedicated to exploration
A specific objective: 5% of Quebec’s consumption
Since its creation, Pétrolia has been one of the leaders in oil exploration in Quebec. Through its acquisitions and agreements, the Company now holds around 70% of the exploration licences for areas with oil potential. At this stage in its development, Pétrolia is now working towards definiting the next steps in its growth, maintaining its ultimate goal of producing, within four years, 5% of the oil consumed in Quebec. This goal may seem ambitious, since it means producing around 20,000 barrels per day. However, the potential and extent of the territory covered by Pétrolia's permits make this goal achievable. The Company has made this objective the focus of its corporate strategy.
Overcoming Skepticism
Since Quebec has had no previous examples in the petroleum industry, companies working in this sector need to come to terms with the natural mistrust of observers. Consequently, Petrolia’s growth is linked to its ability to prove that Quebec’s subsoil contains hydrocarbons in significant quantities and that their development is financially profitable. |
