Targets:Hydrothermal dolomite and naturally fractured conventional oil and natural gas
Total Land Package: 1,165,957 acres (471,848 hectares)
The area is located close to local end-users markets such as manufactures and trucking, and close to regional industries with a strong need for natural gas such as a new aluminum plant in Cap-Chat (Orbit Aluminae) and a new cement factory (Ciment McInnis) with opening expected end of 2016. Numerous heavy industries located across the St. Lawrence River also require natural gas and an LNG plant for overseas exports is being built in Grande-Anse (GNL Québec) with opening expected in 2019. New governmental Energy plan includes provisions for conversion to natural gas for trucking and ferries (link to the North Coast). Although the area lacks delivery infrastructures, a good road network exists and delivery by pipelines, LNG and CNG are possible.
100% owned Matapedia and Mitis Properties
Petrolympic holds a 100% interest over 100,542 acres (40,688 hectares) in two exploration permits located on the south shore of the St. Lawrence River between Rimouski and Matane. The first permit, referred to as the Matapedia Property, was initially granted by the Quebec government in 2003 to Prospection 2000 Inc. who transferred the ownership in 2004 to Petrolympic. The second permit, referred to as the Mitis Property, was granted by the government to Petrolympic in 2006. Both properties are included in the Lower St. Lawrence administrative region (not to be confused with the St. Lawrence Lowlands between Quebec City and Montreal !) but geologically they belong to the Gaspe Belt and they are in continuity with the proven petroleum systems that are actively developed in the Gaspe Peninsula (Bourque and Galt fields).
The area is prospective for hydrothermally dolomitized and/or naturally fractured conventional plays in the Val-Brillant Formation sandstones and the Sayabec, Forillon and Indian Cove formations limestones. A series of shallow wells drilled for gold in the early 2000ies have confirmed the presence of light oil and gas in the area and hydrothermally dolomitzed Sayabec Formation showing high porosity with large vugs and pyrobitumen (degraded oil) was recently documented on outcrop north of the Properties. Governmental and proprietary seismic lines have been reprocessed and reinterpreted in 2015 and have highlighted several deep and shallow drilling targets in both properties.
Joint Venture Property
Petrolympic also holds a 30% interest over 1,065,415 acres (431,160 hectares) in twenty four exploration permits granted between 2001 and 2006 by the Quebec government to JV partner Ressources et Energie Squatex (70%), the operator of this Property. The Property is located on the south shore of the St. Lawrence River between Rimouski and Riviere-du-Loup. Petrolympic joined Squatex in a JV partnership in 2008.
Extensive exploration campaigns have been undertaken by the Squatex and then partnership since 2001. In this very large and previously underexplored area, the work consisted in systematic field mapping, proprietary seismic surveys and reprocessing of vintage seismic, shallow and deep coreholes, and geophysical and geochemical surveys. The plays considered include the naturally fractured carbonates, the hydrothermal dolomitization and the pinnacle reefs. The latest coreholes drilled by the partnership tested a seismic AVO anomaly on the Masse structure.
The well Masse No 1 was drilled in 2012-2013 to a total depth of 1,874 meters and successfully demonstrated the presence of a conventional reservoir in the hydrothermally dolomitzed Sayabec Formation, with porosities up to 20.8% and permeabilities up to 1,624 mD. The charge of the reservoir consists mostly in dry gas (89% methane) with no hydrogen sulfide. The reservoir has been independently validated by Sproule in 2014.
The well Masse No 2 was drilled in 2014 to a total depth of 1,970 meters and demonstrated the presence of heavy oil (19.85º API) with very low sulfur content (0.953%) and condensates devoid from hydrogen sulfide in the hydrothermally dolomitized and naturally fractured Sayabec Formation.
The successes obtained in the Masse structure confirmed that hydrocarbon-bearing intervals can be successfully located through processing of seismic AVO anomalies, paving the way to test additional drilling targets identified by the same method in several fault blocks across over 500 km2.
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