BROSSARD, QC, Dec. 14, 2016 – The management of Ressources and Énergie Squatex Inc. (Squatex), welcomes the adoption of the new law 106 leading the development of hydrocarbons in Quebec. After more than 10 years of work, two BAPEs and a strategic environmental study encompassing more than 70 detailed research topics linked to oil and gas activities, the Government of Québec adopted a new regulatory framework early Saturday morning on December 10th. Québec thus becomes one of the jurisdictions in the world where exploration and production of hydrocarbons are regulated in the safest way for the benefit of the population and the environment. Squatex believes that the various players involved in this nascent industry in Quebec will be able to achieve a harmonious and profitable development under this new regulation.
Squatex also wishes to mention that a drilling rig and all the necessary equipment were mobilized last fall on the Massé 2 site to carry out a reconditioning of the borehole in order to maintain the integrity and safety of the well structure. An appreciable amount of oil was collected in the drilling mud throughout this work and a sampling showed an oil specific gravity of 22.4 API. Squatex is awaiting the government permits required to complete the research work undertaken on this site in the fall of 2014 and the equipment being already on the site, this will allow an early resumption of work in the spring of 2017.
Squatex President Mr. Jean-Claude Caron commented, “The government of Quebec with its new legislation paves the way for a new prosperity of the province. After all these years of uncertainty, investors will finally be able to assess the financial risks inherent in hydrocarbon exploration in Quebec. In the petroleum sector, predictability is proof of everything and the step taken by the government now allows me to see the future as very promising for our company, our partners and for the entire population of Quebec. We are at Squatex very enthusiastic at the idea of being now able to carry out tests of rock formations in the Massé Structure which in our opinion could prove to conceal a giant oil field. “
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