Discovery of a Natural Gas Reservoir in the Lower St Lawrence Region
December 09 2013 - 9:00AM
Marketwired
Discovery of a Natural Gas Reservoir in the Lower St Lawrence
Region
MONTREAL, QUEBEC--(Marketwired - Dec 9, 2013) - J.A.G. Mines
Ltd. (TSX-VENTURE:JML) and its subsidiary, Olitra Inc., wish to
emphasize the strategic importance to Quebec of the discovery of
the first conventional natural gas field in the Lower St Lawrence
region. The discovery recently announced by the company Petrolympic
Ltd., a partner company of Resources and Energy Squatex, has just
demonstrated the hydrocarbon potential of this under-explored part
of the Quebec Appalachians.
More specifically,
this discovery south of Rimouski stresses the importance of Siluro-
Devonian coral reefs in trapping hydrocarbons. These carbonate
reefs are present in the northern part of the Témiscouata property
of JAG-Olitra, which is adjacent to the Lower St Lawrence property
of Petrolympic-Squatex.
Since 2006, JAG and
Olitra Inc. have explored more than 331,000 hectares of land in the
Lower St Lawrence and demonstrated the presence of soils highly
enriched in C1- C4 hydrocarbons in the areas of St-Eusèbe, the
northern part of the Owen ZEC (Lake Ango), and the southern part of
the Rimouski reserve. These domains enriched in methane and
condensates (ethane, propane, butane) are located above a gravity
low, suggesting thickening of the sedimentary basin.
Over the JAG and
Olitra permit areas, these gravity lows are partly associated with
the presence of coral reefs covered by Silurian shales of the
Témiscouata Formation. In such a context, coral reefs similar to
those of the Sayabec Formation could form rich hydrocarbon
reservoirs, while Témiscouata shales may constitute an impermeable
barrier or seal. The discovery of conventional natural gas is
particularly compelling because, in the event that the reserves are
sufficient for commercially viable exploitation, production of this
resource would be undertaken without the use of hydraulic
fracturing.
In 2014, JAG and
Olitra intend to revive their exploration programs in search of
conventional natural gas and condensate in the Rimouski reserve,
and in the Témiscouata and Pohénégamook areas.
For the description
and location of JAG's and Olitra's prope 51-101 F1 and F2 prepared
by Marc Richer LaFlèche, geologist, INRS-ETE and filed on SEDAR,
dated May 5, 2013.
The TSX Venture
Exchange does not accept responsibility for the adequacy or
accuracy of this release.
Pierre GevryPresidentJ.A.G. Mines
Ltd.514-849-7336g.m.st.jacques@gmail.com