Objective for 2009: develop our potential
The ultimate goal of exploration work is always the same: to make a discovery. However, the only way to achieve this result is to drill. As the only step that confirms the value of a reservoir, drilling is the key to all exploration work. Pétrolia will look back at 2008 as an acquisition phase during which the Company kicked off major exploration work, giving it confidence that 2009 will be a year of drilling and development.
Despite the economic conditions, Pétrolia remains optimistic for 2009. With confortable cash on hand and a sizeable territory under permit, Pétrolia will continue its exploration program as expected, giving priority to the most promising projects while aiming to keep million in cash on hand. Just as Quebec’s hydrocarbon potential is generating more and more interest, the value associated with the projects and properties tends to increase accordingly. It is also important to seize this opportunity and speed up development of the properties. On a strategic level, it is to Pétrolia’s advantage to team up with partners to develop its projects. This strategy will allow the Company to grow more quickly in exploration while diminishing the financial risk associated with such projects. As such, Pétrolia foresees 2009 as a major step that will bring about the most drillings since its establishment.
It will also be a year when communication will play an important role. The oil industry rightly sparks a lot of enthusiasm and suspense, but it also raises many questions, some of which are still unanswered for the moment. Pétrolia’s philosophy is to inform the public about each of the steps and procedures it uses as well as all of the terms and obligations that it intends to follow. With the growth of this industry, questions are emerging around the social acceptability of the projects and their economic and social integration into the environment. Uncertainty and ignorance feed distrust, and without the approval and support of the people directly affected in the community, projects can run up against many obstacles. Aware of this reality, Pétrolia considers that respect for the surroundings and the environment is essential. Therefore, to successfully conquer each stage, the Company will strive to assess the repercussions of its projects and to understand the various issues at stake.
There has never been as much money invested in exploration in Quebec as during 2008. Although exploration efforts were once sporadic and inadequate, it is interesting to see old and new players now coming together to increase their chances of discoveries and to speed up the process. Quebec’s oil and gas industry is developing, and in order to take full advantage of the global interest, Pétrolia has prepared to step in. More than ever, Pétrolia is ready to stay the course!
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 five 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.
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.