Pétrolia informed that a letter has been signed confirming that Ressources Québec intends to invest, as an agent of the Quebec government, in Pétrolia’s share capital with a private placement totalling $3.8 million for the first phase of the Bourque LNG 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, the company said in a statement.
This investment will be combined with the interest shown by the company’s partner Tugliq Energy in directly investing $2.7 million in the Bourque project via a joint venture.
Work on the first phase of the resource confirmation program, namely completing Bourque 1 and conducting some additional drilling, is set to begin within the next few weeks. The program will allow Pétrolia alongside Tugliq Energy to carry out a liquid natural gas extraction and liquefaction pilot project that will generate revenue for Pétrolia, the company said.
The confirmation of the intention to invest 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.
Tugliq’s capital participation would make it a partner in both gas distribution and extraction.
The $3.8 million investment from Ressources Québec will keep its participation in Pétrolia under the 20% share capital threshold.