Target: Hydrothermal dolomite hosted Conventional Light Oil

Total Land Package: 1,165,936 acres (471,848 hectares)

1. Petrolympic owns 100% of 100,540 acres (40,688 hectares) between Rimouski and Matane
2. Petrolylmpic owns 30% of the remaining 1,065,396 acres (431,160 hectares) with Squatex (70%) in the Gaspé and Bas-St. Lawrence regions

Technical Information:

Petrolympic holds a 100% interest in exploration permits over 40,885 hectares (101 027 acres) in the Gaspe in two blocks located between Rimouski and Matane. The first permit, the MATAPEDIA permit 2003 RS 092, was initially granted by the Quebec government in September 2003 to Prospection 2000 Inc. who transferred the ownership in 2004 to Petrolympic. A second permit, the Mitis permit 2006 PG 905, was granted by the government to Petrolympic in the spring of 2006. The permits are located to the southwest of a main highway and a few kilometres south of Val-Brillant. Main roads and various secondary, as well as private or forestry roads allow very good access for the acquisition of seismic surveys.

The local geology exhibits significant structural and stratigraphic anomalies on available seismic profiles. If located within porous reservoir rocks, these anomalies could represent traps for hydrocarbons along their upstream migration paths during the major Devonian compression period. The Matapédia Property is situated directly south of the major Shickshock-Sud Fault. Existing and 2006 seismic profiles show fractures and faults that can create various possible traps.

Previous Exploration Previous exploration concepts and methods that were used by others in the past over the Petrolympic properties have indicated the presence of light oil and gas in near surface fractures. An HTD outcrop in the Sayabec Formation that showed high porosity with large vugs and traces of pyrobitumen (degraded oil) was recently found to the north of the property near a major fault. Petrolympic’s exploration work will target at depth this type of phenomenon near major faults or fracture zones observed on ththe seismic profiles. Light oil and gas shows were observed in previous wells; one of these wells, the C-125, is located on the Matapédia property, located near a major regional fault. The property shows many similarities with the Galt and the Haldiman Fields that are producing oil and gas near Gaspé.

In late fall 2006, Petrolympic recorded four profiles totaling 61 kilometers of higher fold seismic data. Three lines were shot in order to tie the C-123 and C-125 wells and previous profiles with their known anomalies and to improve the coverage over the Matapédia property. A 26.3 kilometres long regional profile was recorded across the Mitis property to show the continuation westward of large anticlinal structures. This new data has recently been processed in Calgary giving high quality results and is currently being assessed.

Previous Wells Drilled in the Area

• 1958-C002: – Associated Development Causapscal No.1
• 1967-C086 – Sun Exploration et al La Rédemption No.1
• 1969-C088 – Sun Exploration et al Mitis No.1
• 1996-C119 – Corridor Lac Matapédia No.1
• 1999-C121 – Prospection 2000 Lac Matapédia No.1
• 2000C123 – SPPG Prospection 2000 Lac Matapédia No.1
• 2002-C125 – Bartech Lac Matapédia No.1

Oil shows were reported by drillers in the C123 and C125 wells. Previous exploration has established at least in the northern part of the Matapédia property (within a minimum 1 kilometre per square area), oil/condensates exist in near surface fractures. Little to no primary porosity was observed by geologists that described the cores, however, very good secondary porosities related to major fractures were observed on available electrical logs and noted by the geologist in the deeper part of the C-123 well. These results indicate that oil could be present in reservoirs located down dip from where the numerous fractures outcrop. Petrolympia exploration will therefore be aimed at tracking these fractures used by hydrocarbons as migration paths and follow them down dip in hoping to locate along the way a possible trapped reservoir rock containing commercial hydrocarbon accumulations.