Pétrolia's interests in Gaspe Peninsula
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 2014, 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.
In Quebec, oil resources are found in the east of the province, in the Gaspé region, on Anticosti Island, and perhaps in the Gulf of St. Lawrence. Since it was founded in 2005, the Company has acquired leases that cover more than 15,000 km2, mainly in the Gaspé region and on Anticosti Island. These leases, essentially located in the Gaspé region and on Anticosti Island, cover more than 70% of Quebec’s land petroleum potential.
In concentrating its efforts on searching for oil just as the industry was displaying its enthusiasm for shale gas, the Company may have appeared rash. The recent and foreseeable rise in the price of oil and natural gas has made the decision appear judicious in hindsight. The portion of the territory that has potential for oil controlled by Pétrolia makes it a dominant player in Quebec.
In spite of the 2008 trend to emphasize exploration for shale gas, Pétrolia has held its course and concentrated its efforts on oil exploration. Moreover, in contrast to many companies, Pétrolia stepped up its exploration activities in 2009, in spite of the turbulence and volatility of the markets. This persistence has paid off, because while the price of natural gas was collapsing the price of crude held up. Beside, the demand for oil is always growing, while the reserves tend to diminish. In this situation, a number of North-American companies have now modified their acquisition strategy, buying oil-producing companies in order to consolidate their assets. On the eve of starting production of light oil Petrolia detains all the favorable elements to increase its stock value The Company can justifiably claim to be the Leader in petroleum exploration in Québec.
During the past year, Pétrolia’s activities were concentrated on four main projects. Two of these target the exploration and development of unconventional reservoirs, while the two others target the exploration of large conventional reservoirs.