TORONTO, Feb. 17, 2015 /CNW/ - Petrolympic Ltd.
("Petrolympic" or the "Company") (TSX.V: PCQ) is very
pleased to present a summary of the recent breakthroughs achieved
on its joint venture property in the Lower St. Lawrence area (the
"Property") in conjunction with its joint venture partner,
Squatex Energy and Resources Inc. ("Squatex"), the operator
on the Property. The Property is located in the Appalachian Basin
of Quebec.
The substantially positive results of the recent work program
undertaken on the deepest wells on the Property, Massé No 1 and
Massé No 2, as summarized below, corroborate our exploration models
and complete our understanding of the main plays present in this
vast Property, thus confirming we have successfully cracked the
code of the petroleum systems in the Lower St. Lawrence. These two
wells have been drilled following the interpretation of proprietary
seismic lines and the identification of several prospective
structures across the Property, combined with a series of shallow
coreholes drilled to further refine the geological interpretations
of Petrolympic and Squatex (the "JV Partners").
The presence of oil and natural gas has been proven as announced
in Petrolympic's press releases dated November 15, 2013 and November 7, 2014 (filed on www.sedar.com) and a
reservoir has been discovered and independently evaluated as
announced in Petrolympic's press release dated April 11, 2014 (filed on www.sedar.com).
Management believes that these results confirm the JV Partners'
exploration strategy and have led to the identification of several
plays including hydrothermally dolomitized intervals (HTD), natural
fracture networks and Silurian pinnacle reefs. Comparable plays
have recently been tested with success in eastern Gaspe, as demonstrated by the results of Junex
in Galt (announced in Junex' press
release dated February 2, 2015 and
filed on www.sedar.com) as well as the ongoing efforts of other
companies in the region. Yet these plays had never been considered
or tested in the Lower St. Lawrence due to a lack of data until the
JV Partners undertook their in-depth exploration program. These
efforts are now beginning to bear fruits as the Property is being
opened to exploration and possible future production.
The most recent results from the Massé No 2 Well include the
discovery of heavy oil with a density of 19.85° API and containing
less than 1% (0.953%) sulfur. The oil was first noticed when the
well reached the depth of 3,412 feet (1,040 m) and it continued
flowing until total depth was reached. Important influxes of
natural gas were also recorded over several intervals. The gas
consisted mostly of methane with no hydrogen sulfide (H2S) and is
associated with significant amounts of condensates in the order of
100mL per cubic meter. Well logs also confirmed the relationship
between the hydrocarbons and the natural fracture networks, as it
has been established with success in the Massé No 1 Well.
The Massé No 2 Well has reached the total depth of 6,463 feet
(1,970 m) and a complete set of logs has been recorded before the
rig was demobilized on November 28,
2014, preparing for further downhole testing. Recording
equipment to monitor the pressure has been put in place. The well
is maintaining its pressure and monitoring will continue until
equipment can be brought on location and downhole testing can be
performed this spring to investigate the production capability of
the hydrocarbon-bearing, naturally fractured intervals.
Meanwhile the JV Partners are actively preparing to move forward
with the pursuit of a deep stratigraphic coring program to validate
several other prospective structures with promising hydrocarbon
potential across the Property. The next selected drilling site,
Marleau No 1, is located a few kilometers to the south of the Massé
No 2 Well and will test a flat spot, i.e. a seismic feature
characteristic of the presence of fluids in the subsurface. This
new well will mark a significant step out and, if successful, will
expand the potential of the Property and enable us to test similar
targets in another fault compartment block, thus extending the span
of the plays already validated farther north.
The plays considered on the Property are all conventional and as
such, no massive hydraulic fracturing is required. In the area
investigated by the partnership the Saint-Leon siltstones provide a 2,600
feet-thick (about 800 m) homogeneous, non-porous seal. Furthermore,
such conventional reservoirs can produce hydrocarbons at a
relatively low cost and in a short amount of time. With a growing
local market and a high demand for oil and locally-produced natural
gas in the area, the Company expects to drill a production well in
a near future.
Mendel Ekstein, President and
CEO of Petrolympic provides the following comment:
"All this is happening at a time the Quebec government is actively reshaping its
energy policy, aiming at reducing its dependence on foreign energy
sources. While, to date, most of the attention in Quebec has been focused on the eastern
Gaspe Peninsula, we are unlocking
similar conventional plays in the Lower St. Lawrence. The table is
set for 2015 to be a very active and successful year for the
Province and I believe Petrolympic will contribute significantly to
this success."
The Company holds a net interest in 319,751 acres (129,401
hectares) of the Property through a joint venture with Squatex. The
Company also owns a 100% interest in 101,029 acres (40,885
hectares) in two exploration permits in the same area, referred to
as the Matapedia and the Mitis
properties. Several conventional plays and exploration leads have
been identified in these permits where oil and gas have been
encountered in mining wells in the 90's. Based on proprietary
seismic data, similar structures are also believed to be present at
depth in these two permits.
About Petrolympic Ltd.
Petrolympic Ltd. is a Canadian junior oil and gas company
actively exploring for premium crude oil and natural gas in
North America. The Company has an
oil production asset in the prolific Maverick Basin of Texas, USA. The Company also holds an interest
in a total of 754,216 hectares (1,863,668 acres) of oil and gas
exploration permits in the Appalachian Basin of Quebec that include holdings in the St.
Lawrence Lowlands and Gaspe
Peninsula. The Company's holdings in the St. Lawrence
Lowlands consist of a 30% interest in 217,370 hectares (536,941
acres) through a joint venture with Squatex Energy and Resources
Inc. ("Squatex"), a 12% interest in 8,000 hectares (19,768
acres) through the Farmout Agreement with Canbriam Energy Inc., and
a 100% interest in 56,622 hectares (139,913 acres) located over the
Lowlands shallow carbonates platform on the south shore of the St.
Lawrence River, less than 30 kilometers southwest of
Montreal. These properties represent a major position in the
Utica Lorraine and Trenton-Black River Plays. Petrolympic also
maintains holdings in the Gaspé and Lower St. Lawrence regions,
including a 30% interest in 431,339 hectares (1,065,839 acres)
through a joint venture with Squatex and a 100% interest in a block
of exploration permits totalling 40,885 hectares (101,029 acres)
located between Rimouski and
Matane prospective for
hydrothermal dolomite hosted light oil.
Forward-Looking Statements
This press release includes certain "forward-looking
information" within the meaning of the Securities Act
(Ontario), including, but not
limited to, statements as to timing and extent of exploration
programs and the availability of exploration results. As such,
forward-looking information addresses future events and conditions
and so involves inherent risks and uncertainties, as disclosed
under the heading "Risk Factors" and elsewhere in
Petrolympic documents filed from time to time with the Ontario
Securities Commission and other regulatory authorities. Actual
results could differ significantly from those currently projected
as a result of, among those factors, adverse weather, regulatory
changes, delays in receiving permits, accidents and delays in
completing exploration activities not all of which are in the
control of Petrolympic. The forward-looking information contained
herein is Petrolympic's reasonable estimate today of future events
and conditions, but no assurance can be given that such events or
conditions will occur. The reader is cautioned not to rely on these
forward-looking statements. Petrolympic disclaims any obligation to
update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Petrolympic Ltd.