RIMOUSKI, QUÉBEC–(Marketwire – Feb. 9, 2011) – Petrolia Inc. (TSX VENTURE:PEA) and Corridor Resources Inc. (CDH – TSX) are pleased to announce the results of Macasty shale core and petrophysical analyses from the Petrolia/Corridor Chaloupe #1 well on Anticosti Island. Pétrolia and Corridor hold licenses covering more than 1.5 million acres on Anticosti Island that is underlain by the Macasty shale. The Macasty shale is the lateral equivalent of the Utica shale that occurs through the Quebec and into New York.
A twenty-seven meter Macasty core was cut during the 2010 summer drilling program and analyzed by Weatherford Labs in Houston and Global Geoenergy Research Ltd in Halifax. This data was incorporated by Schlumberger Canada into a petrophysical program that calculates shale reservoir properties.
The following table shows the results of the full diameter core cut in the Macasty of the Chaloupe well.
Core Parameters Macasty Shale
Mineralogy (Average %) Quartz 37, Carbonate 25, Clays 21, Other 17
Macasty Total Thickness 40 m (131 ft)
Total Matrix Porosity 3.1 to 6.3% (Ave 4.9%)
Oil Saturation 35.2 to 48.3% (Ave 41.9%)
Gas Saturation 1.0 to 14.7% (Ave 5.0%) (1)
Water Saturation 41.5 to 63.8% (Ave 53.1%) (2)
Desorbed Gas Content (Ave) 41 scf/ton
Total Organic Carbon (TOC) 1.9 to 3.87 wt% (Ave 2.97 wt%)
Maturity 0.55 (Ro %) (3)
Main Kerogen Type Type II
Oil Gravity 35+ API
(1) Gas underestimated due to lack of pressure preservation
(2) Water saturation is overestimated as it includes water expelled from clays within the shales
(3) Ro suppressed by high oil saturation
These results are positive indicators that the Macasty shale may be a potential tight oil producing formation as described below:
An average Total Organic Carbon (TOC) of 3% indicates a rich source rock. Global Geoenergy (geochemical consultants) advises that the vitrinite reflectance (Ro) and Thermal Alteration Indices (TAI) data indicate that the rocks in the Chaloupe # 1 well should be within the early part of the mature oil window. This oil maturity is supported by rock evaluation data (Tmax and S2) generated by Weatherford Labs.
The average oil saturation is 42% and the total hydrocarbon saturation (plus gas) is 47%, which indicates a relatively high oil concentration. The desorbed gas content indicates a reasonably high gas-to-oil ratio that can assist in the potential resource recovery.
The matrix porosity averages nearly five percent, which is a positive indicator for potential resources initially in place.
The mineralogy indicates that the rocks should be favorable for fracing due to the high quartz and carbonate content and the low clay content.
Petrolia and Corridor engaged Schlumberger Canada to analyze the petrophysical logs using the results from the core analysis to calibrate the logs. Schlumberger computed an average porosity and an average oil saturation for the Macasty and English Head formations in the Chaloupe #1 well. Schlumberger calculated high hydrocarbon saturations (80%) and porosities (6% effective) in the Macasty Formation, with saturation and porosity declining in the overlying English Head Formation. These results are positive indicators for the potential of significant oil in place within the Macasty shale.
Nineteen of the twenty wells drilled across Anticosti Island have intersected the Macasty shale. However, the quality of those shale intersections has not been evaluated from a resource in place context.
Petrolia and Corridor will be actively evaluating their joint venture options regarding further exploration and determination of resource potential, in order to ensure that optimal shareholder value is obtained from the ongoing programs. The Anticosti exploration program is at an early stage; further work is required to determine the potential for commercially viable resource recovery, prior to proceeding to the development phase.
Corridor is a junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick, Prince Edward Island and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has reserves of natural gas at the McCully Field near Sussex, New Brunswick and shale gas resources in the adjacent Elgin sub-basin. In December 2009, Corridor entered a joint venture to appraise and potentially develop its significant shale gas resources in the Elgin area.
Forward Looking Statements
This joint press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “plan”, “continuous”, “estimate”, “expect”, “may”, “will”, “project”, “should”, or similar words suggesting future outcomes . In particular, this press release contains forward-looking statements pertaining to the following; the characteristics of the Macasty shale as a potential shale oil producing formation, further exploration and determination of resource potential, and optimization of shareholder value from ongoing programs.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. These factors include, but are not limited to: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, issuance of debt, variations in exchange rates and hedging. Further information regarding these factors may be found under the heading “Risk Factors” of Corridor’s and Petrolia’s annual information form and most recent management’s discussion and analysis. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Corridor and Petrolia and their respective shareholders.
Forward-looking statements are based on Corridor’s and Petrolia’s current beliefs as well as assumptions made by, and information currently available to, Corridor and Petrolia concerning anticipated financial performance, business prospects, strategies, regulatory developments, future natural gas and oil commodity prices, exchange rates, future natural gas production levels, the ability to obtain equipment in a timely manner to carry out development activities, the ability to market natural gas successfully to current and new customers, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through development and exploration activities in addition to the arrangement between Corridor and Petrolia. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements contained in this press release are made as of the date hereof and neither Corridor nor Petrolia undertakes any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are made as at the date hereof and are expressly qualified by this cautionary statement.
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