Pétrolia has announced that a letter has been signed confirming that Ressources Québec Inc. intends to invest, as an agent of the Quebec government, in the company’s share capital with a private placement totalling $3.8 million for the first phase of the project.
This investment is made up of a private equity investment in Pétrolia's share capital or, as the case may be, in the Bourque Project via a joint venture. This investment will be combined with the interest shown by our partner Tugliq Energy Corp. in directly investing $2.7 million in the Bourque Project via a joint venture.
Work on the first phase of the resource confirmation programme, namely completing Bourque 1 and conducting some additional drilling, is set to begin within the next few weeks. The programme will allow Pétrolia to carry out an LNG extraction and liquefaction pilot project alongside Tugliq Energy.
This announcement is the first step in the Tugliq project to put in place an LNG distribution chain to replace the diesel used by Côte-Nord industries with natural gas. The Bourque project will also generate jobs and significant economic spinoffs for the Gaspé region, set to be the starting port for LNG shipping routes.
Pétrolia President and CEO, Alexandre Gagnon, said: "Thanks to the support of the Quebec government and Tugliq Energy, this work programme will enable us to launch a gas delivery pilot project starting next year that could generate the first revenue for Pétrolia. I'm very excited for our company and proud of our gas distribution partnership with Tugliq Energy."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/02092015/petrolia-takes-steps-towards-lng-project-1228/