2009-08-10-2008-09-01

To farm into up to 70% interest in Bourque property near Gaspe.

Petrolia, Rimouski, Quebec, (CDNX: PEA) plans to farm out up to 70% interest in Quebec to an undisclosed oil company for C$20 million. The deal includes four leases in the Bourque property, northwest of the Gaspe area. The oil company will spend a minimum C$2.5 million in seismic survey and C$8 million in exploration work to earn a 24% stake in the property. It can then increase its stake to 48% by investing a cumulative C$16 million, or 70% by investing C$20 million. The oil company may be reimbursed up to C$6 million taken from Petrolia's production revenues. Royalties of 5.5% are payable on the production from these four leases. Petrolia is operator. Petrolia president Andre Proulx says, "The agreement is of vital importance for Petrolia not only if you consider the amounts invested, but especially because of the considerable oil potential associated with this type of trap. The discovery of hydrocarbons in such a context would open wide the door to oil exploration in the Gaspes Peninsula."