QUEBEC CITY, QUEBEC — (Marketwire) — 03/21/12 — Petrolia (TSX VENTURE: PEA) understands that the Minister of Finance, within the framework of his speech on the budget 2012-2013, supports the development of Quebec–s oil and gas potential: a support which might eventually include a State interest in such development.
However, royalty rates, which could reach 40% of the gross value of the petroleum produced, appear extremely high in light of the level of geologic risk involved in Quebec, and the relative immaturity of its industry. However, a number of mitigating measures proposed by the Finance Minister could alleviate the impact of these provisions. Thus for a typical project located in the Gaspe region the royalty rate would be around 18%, which compares favourably with the 30% rate in Alberta for a similar project.
Petrolia also points out that the Minister of Finance maintains an income tax credit for exploration. This is an essential consideration aimed at encouraging exploration for oil and gas resources in eastern Quebec.
Petrolia also appreciates the Minister–s initiative which paves the way to establishing specific conditions for Anticosti Island. Petrolia stands ready to collaborate with the Minister in working out the conditions which will ensure a balance between the State–s rightful interests and what is necessary in order to develop the great potential of this region.
Finally, Petrolia also believes that the Government has grasped the important role that the availability of natural gas could play in the transformation of resources and the industrial development of the North Shore. Petrolia notes that Anticosti Island could supply these needs from the gas associated with its oil.
About Petrolia
Petrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 14,000 km2 (3.5 million acres), which represents about 17% of the Quebec territory under lease. The leases, the majority of which are located on the Gaspe Peninsula and Anticosti Island, are considered to be very promising and represent almost 70% of the territory under lease for which there is land-based oil potential in Quebec. Petrolia has 54.8 million shares issued and outstanding.
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.
Contacts:
Isabelle Proulx
Vice-President
Quebec City: (418) 657-1966
Andre Proulx
President
(418) 724-0112