Quebec

Canbriam’s 122,494 net acres in Quebec lies in the middle of the industry recognized prospective Utica shale gas fairway.  Canbriam entered the play in late 2008 through 2 farm-in arrangements holding 80% and 60% working interest respectively. Canbriam operates both farm-ins and has drilled and completed its first wells in Quebec in late 2009 and is currently planning the summer 2010 drilling program. 

Canbriam estimates there is up to 14 TCF of Original Gas in Place (OGIP) in the Utica Shale over its land base.  The Utica Shale is an emerging shale gas play and operators are now testing the application of horizontal drilling and completions technologies to establish commerciality of this play.  The Utica is well positioned in North American natural gas markets to take advantage of regional commodity price advantages.   

Highlights

• Exposure of 122,494 net acres (173,118 gross) of land in the St. Lawrence Lowlands of Quebec targeting the emerging Utica and Lorraine shale gas opportunities

• Significant resource potential on large contiguous land parcels with favorable lease retention regulations

• Quebec is attractively positioned within North American gas markets to benefit from commodity pricing advantage in a competitive royalty and regulatory jurisdiction