Oil and gas explorer Petrolia, said that the government of Quebec, through its agent Resources Québec, plans to invest additional CA$8.5 million in the Bourque project.
According to Petrolia’s statement, the government will gain direct participation through a joint venture created after the first investment.
Combined with the investment from Petrolia’s partner Tuliq Energy, financing for the planned work has been completed. Petrolia, as operator will hold 51 percent of the joint venture.
Petrolia’s total investment in the project so far has reached $22 million, and the project is estimated to hold more than 1 tcf of gas in four zones, located 30 km east of the town of Murdochville.
Work on the first phase of the resource confirmation program should begin within a few weeks, Petrolia said.
The program will allow the Petrolia-Tuliq partnership to implement a pilot project on the extraction and liquefaction of natural gas.
The terms and conditions of the agreement with the government are yet to be finalized, Petrolia said.