RIMOUSKI, Sept. 8 /CNW Telbec/ - Petrolia announces that it has acquired a 10% participation in the St-Simon drilling project, announced by Junex Inc. (TSX - JNX) in its September 8, 2005 press release. This participation again establishes Petrolia as a major player and diversified participant in the Quebec oil and gas exploration industry. The agreement between Petrolia and Junex provides that Petrolia is granted a 10% interest in the St-Simon well and has the right to maintain a maximum 10% interest in the geological structure developed as a result of the St-Simon well and subsequent work. For this consideration Petrolia shall pay Junex $100,000. Project Objective Located about 15 Kms from Saint-Hyacinthe (an outlying suburb of Montreal), the St-Simon drill program consists of a re-entry and deviation of a well drilled by Shell in 1969, specifically a horizontal deviation at a depth of 2,380 metres. The objective of this new drilling is to deviate into a zone tested by Shell. The stratigraphic target is the Beekmantown Group, the same stratigraphic unit that hosts the St-Flavian gas field. Previous drilling by Shell demonstrated the presence of natural gas, but these discoveries were never followed-up by development wells. Since Shell's work in 1969, several new economic considerations are relevant: the significant rise in the price of natural gas and the proximity to an existing gas pipeline. Additionally, new evaluation work performed by Junex suggests that the St-Flavien field could contain up to 100 bcf (billion cubic feet) of natural gas. While this estimate is not compliant with 53-101 standards, it is suggestive that the area holds promise for further exploration discoveries of natural gas reserves. A successful intersection into the extension of the St-Flavien field could result in early production development of the field extension. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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