TORONTO, ONTARIO, Oct. 12, 2010 (Marketwire) – Petrolympic Inc. ("Petrolympic") (TSX VENTURE:PCQ) is pleased to announce that it, along with Ressources et Energie Squatex Inc. ("Squatex") has approved a request by Canbriam Energy Inc. ("Canbriam") to extend for one (1) year its commitment dates for the First, Second, and Third Option Programs (the "Extension") in the farmout lands (the "Farmout Lands").
Furthermore, Canbriam has agreed to allocate excess drilling credits with an implied value of $4,000,000 earned through operational expenditures, to Petrolympic and Squatex in order to satisfy the work commitment obligations for the Petrolympic / Squatex Joint Venture Lands.
Pursuant to the farmout agreement (the "Agreement") between Petrolympic, Squatex and Canbriam, Canbriam has drilled and suspended the Farham No.1 well earning a 60% interest from the surface down to the Top of the Trenton over 8,000 Hectares of its choice. Canbriam subsequently entered into the first of three Option Programs, paying $1,050,000 to Petrolympic and $2,450,000 to Squatex. Canbriam has committed to spud two additional farmout wells by September 30, 2011, and to drill and case or abandon these wells prior to making an election for the following Option Programs on or before December 31, 2011.
Canbriam maintains through a series of rolling options, the right to earn a 60% interest in up to an additional 24,000 Hectares, for a total of 32,000 Hectares within the Farmout Lands, by drilling up to six additional vertical/horizontal wells, and by making cash payments of up to $13.5 million ($4.05 million to Petrolympic and $9.45 million to Squatex) prior to November 30, 2012. When Canbriam earns the interest on such Farmout Lands, the remaining 40% interest shall be held by Petrolympic and Squatex based on the terms of the existing joint venture (28% interest for Squatex and 12% interest for Petrolympic). Petrolympic and Squatex retain a 100% interest in the deeper formations. Canbriam shall be responsible for all drilling, completion or abandonment costs incurred with respect to the earning wells described above. The Agreement also contains provisions to account for rig unavailability and delays due to one or more events of Force Majeure.
Petrolympic (TSX VENTURE:PCQ) is a junior oil and gas company actively exploring for premium light crude oil and natural gas in Quebec, Canada. The Company combines significant land positions, promising geology, systematic exploration, accessible infrastructure, and experienced management.
Petrolympic holds a gross interest of 472,027 hectares (1,166,378 acres) and has a net holding of 170,090 hectares (420,290 acres) exploration permits in the Lower St. Lawrence and the Gaspe Peninsula areas. Petrolympic also has a gross interest of 281,995 hectares (696,810 acres) and net holding of 124,236 (306,987 acres) in the St. Lawrence Lowlands.
Squatex is a private oil and gas exploration company active since 2001 and based in Brossard, Quebec. It holds 70% of 431,339 hectares (1,065,839 acres) of exploration permits in the Lower St. Lawrence and the Gaspe Peninsula areas, 70% of 217,370 hectares (536,941 acres) and 28% of 8,000 hectares (19,768 acres) in the St. Lawrence Lowlands.
Canbriam is a Calgary-based private exploration and development company targeting emerging North American unconventional oil and natural gas opportunities. Formed with financial support from Warburg Pincus and ARC Financial, Canbriam Energy is comprised of professionals with strong track records of value creation and a technical team with extensive experience in unconventional gas resource development.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Squatex / Petrolympic., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the company's exploration projects will add to Squatex / Petrolympic's resource base in the short-term, or at all. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.