Joly Property

In September 2007, Gastem signed a farm-in agreement with Intragaz to test the Joly structure situated on two exploration permits and one production permits for a total area of 14,050 hectares. These permits are located about 50 km southwest of Quebec City. They cover a structure consisting of two superposed Ordovician platform, in a similar structural setting as the adjacent St-Flavien gas field, now used for as a natural gas storage reservoir and operated by partner Intragaz.

Following the terms of the agreement Gastem, as operator, spudded Gastem-Intragaz, Joly No.4 on permit 2002-PG-669 in December 2007. This deviated well reached a total depth of 1,016m (TVD 973m) on December 29th, 2007 and intersected the upper thrust sheet. The Joly 4 well was abandoned during Q2 of 2009.

By drilling the Joly No. 4 well, Gastem earned a working interest for 35% of gas production and 34% of gas storage.