Technical Information

Petrolympic holds a 100% interest in exploration permits over 56,622 hectares ( 139 856 acres) in the St. Lawrence Lowlands located on the south shore of the St. Lawrence river directly south of the City of Valleyfield, less than 30km southwest of Montreal. The permit block lies within the southern end of the St.Lawrence Lowlands sedimentary basin that extends from the Ontario border to the West to Quebec City to the East and from the St. Lawrence River to the North to the USA border to the South, in the shallow portion of a more or less undisturbed Ordovician Carbonate Platform. Three permits covering 56,622 hectares (139 856 acres) were granted in April 2006 by the Quebec government. Numerous paved and gravel roads exist throughout the permitted area. A secondary gas pipeline connected to the main Gaz Metro line to the north of the St. Lawrence River runs across the property. The properties are believed to have potential for shallow gas production. These permits are located over the Ordovician carbonate platform near important normal faults bringing the Utica source rocks in contact with potential reservoir rocks in the Beekmantown and the Potsdam Formations providing trapping mechanisms for gas accumulation. The company has developed an exploration program aimed at demonstrating the potential of this area of the Lowlands and is planning to proceed in the field during Fall 2007. Wells Drilled in the Area • Well 2004-A245: - Gastem Dundee No.1 25 Km to the west of the Property on a geophysical anomaly. Gas and salt water were found in the Beauharnois and Theresa Formations. Intense sub-horizontal fractures were observed and hydrothermal dolomitization was reported in the upper part of the fractures zones. • Well 2002-A234: - Ditem Dundee No.1 25 Km to the west of the property on a seismic anomaly. Good gas shows were reported from porous zones near fractures. • Well 2002-A233: - Gastem Huntingdon No.1 Located on a topographic high near the western limit of the Property. Vertical fractures were observed. No gas was reported and the well was abandoned. • Wells 1967A157 - Salem No.2 and 1967B251 – Salem No.1 These two boreholes exploring for zinc encountered gas in the Beauharnois Formation. Total depths were respectively 236 meters and 114 meters. They are located in the same general area of the A234 and A245 wells. • Well 1955-A112 - Saint-Lawrence River No.1 5 Km north of the Property. No shows were reported. • Well 1953-A077 – Lozo and Joseph No.2 30 Km east of the property near a major fault zone. Encountered various gas and oil shows from 100 to 942 meters (stronger shows being after 833 meters). The previous Lozo and Joseph No.1 (A076) well drilled in Utica only in the same general area had salt water and gas shows with pressures of 120 PSI. • Well 1955A001 – Montréal No.1 5 kilometers north of the property. Gas and oil were reported near the base of the Theresa Formation. Exploration The Company plans to drill three shallow wells to test directly for the presence of hydrocarbons. The first year coring program will consist in the drilling of site No.1 and the results will be used to assess the possibilities for accumulations of hydrocarbons. This new data will also allow the company to delineate potential traps and to locate further drilling sites. Two wells are anticipated during the second phase and two more will follow in the third phase.