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Petrolia and Gastem Gaspe Exploration Agreement
Business
Apr 26 2005
5 min read

Petrolia and Gastem Gaspe Exploration Agreement

RIMOUSKI, April 26 /CNW Telbec/ - Andre Proulx, President of Petrolia
(PEA - TSXV) and Raymond Savoie, President of Gastem (GMR-TSXV) are pleased to
announce the signing of an agreement in principle that grants Petrolia the
right to conduct exploration work and drilling on four Gastem hydrocarbon
permits in Quebec's Gaspe Peninsula.
The agreement provides that Petrolia shall have the exclusive right to
conduct exploration work on Gastem's four Gaspe permits (the Matapedia North
Property) for a period of three years. In order to maintain the option and to
renew its exclusive exploration rights for an additional two years, Petrolia
must complete an exploration well on one of the four permits within the
initial three year period.
The Gastem permits are loacted on the southwest boundary of Petrolia's
large 100%-owned Gaspesia permit area and lie along the axis of two structural
fairways where potential hydrocarbon reservoir structures have been identified
by two seismic surveys.
The option agreement provides that Petrolia shall reserve for Gastem a
royalty of 5% on all production deriving from work performed on the four
permits. In addition, Gastem shall have the option to acquire a 15% interest
in each well by contributing 15% of the drilling costs. For each well
completed, Petrolia shall have the exclusive right to produce from a 10 Km2
area.
Petrolia is currently conducting a 30 Km detailed seismic survey over
potential hydrocarbon reservoirs located on the four Gastem Matepedia North
properties and along the western boundary of Petrolia's Gaspesia property.
Images showing the relative locations of the Petrolia and Gastem properties
can be viewed at www.petroliagaz.com .
This agreement between Petrolia and Gastem, gives Petrolia and its
partner Junex (JNX-TSXV) control of approximately 70% of the exploration
permits in the Gaspe Peninsula that are considered extremely prospective for
the discovery of significant hydrocarbon concentrations.

About Petrolia

Petrolia is an oil and gas company that concentrates on hydrocarbon
exploration in the Gaspe Peninsula. Listed on the TSX Venture Exchange in
February 2005, Petrolia has working capital of $2.7M and a capitalization 15
680 107 common shares issued and outstanding.. Near term, Petrolia's goal is
to produce oil and gas from its Gaspe Peninsula properties or from one of its
newly acquired partnership properties. The company is currently conducting a
detailed seismic survey on a potential hydrocarbon reservoir located on the
western border of its original Gaspe property.

About Gastem

Gastem is a publicly traded oil and gas exploration company (GMR - TSXV,
approx 9 million shares O/S) that was formed in January 2004. Gastem holds
properties in Quebec and Alberta and a participating interest in the Ste-
Sophie well being drilled with Questerre Energy and Hydro-Quebec Oil and Gas.
Gastem's annual report and financial statements can be viewed at www.sedar.com
or on the Gastem website www.gastem.ca .

The TSX Venture Exchange has neither approved nor disapproved the
information contained herein