Canbriam Energy Acquires 60% Interest In Utica Shale Drilling Program

To acquire 60% earned interest in St. Lawrence Lowlands assets.

Privately held, Calgary-based Canbriam Energy Inc. has acquired a 60% earned interest in a 19,770-acre block in the St. Lawrence Lowlands through its farm-in agreement with Petrolympic Ltd., Montreal, (Toronto Venture: TSX) and privately held, Brossard, Quebec-based Ressources & Energie Squatex Inc.

Canbriam is responsible for all drilling, completion and abandonment costs incurred during the program. Squatex now owns a 28% interest in the exploration permits, with Petrolympic holding the remaining 12%.

The block includes the Farnham No. 1 well that was spudded in July 2009 and targets Utica shale.

Canbriam must drill and case or abandon two vertical wells before Dec. 31, 2010, to be entitled to a 60% interest in the next block. The company can also earn a 60% interest in up to 59,305 acres by drilling up to six additional wells and paying up to C$13.5 million by Nov. 30, 2011.

The companies entered into the joint operating agreement in 2008.