| Gastem/Magdalen Basin: GSC Assessment Report |
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Gastem (TSX VENTURE:GMR) reports that the Geological Survey of Canada has released a study entitled Petroleum Resource Assessment, Paleozoic Successions of the St. Lawrence Platform and Appalachians of Eastern Canada (Open File 6174) by D. Lavoie, N. Pinet, J. Dietrich, P. Hanigan, S. Castonguay, A. P. Hamblin and P. Giles. The report is available for viewing at http://geopub.nrcan.gc.ca/moreinfo_e.php?id=248071. The study discusses the Maritimes Basin, which is composed of three basins: the Sydney, the St. Anthony and the Magdalen Basin. Of the comments by the GSC on the Maritimes Basin and the Magdalen Basin (Upper Carboniferous sequence) and specifically, the northeastern salt basin coincident to the Magdalen Basin, we draw attention to the following. The report states that (page 162): "... In terms of total petroleum resource potential, the Upper Carboniferous Play is considered the most prospective of the three Maritimes Basin plays. This reflects the combination of a large play area, large numbers and sizes of prospects, and thick and widespread source rocks in the Upper Carboniferous." The resource assessment for the Maritimes Basin notes that (p.213) : "...median estimates of total gas in place for the Maritimes Basin assessment region are ... 39.4 Tcf. High confidence (90% probability) and speculative (10% probability) estimates of total oil potential are 143 and 345 x 10(6) m3 (899 and 2170 MMbbl), respectively. High confidence and speculative estimates of gas potential are 712.2 and 1564.9 x 10(9) (25.2 and 55.3 Tcf), respectively." The study also states (page 213) that: "...the assessment results indicate the Upper Carboniferous clastic play is expected to contain about 60% of the region's total natural gas resource volume in clastic reservoirs and 7 of the 10 largest fields, a concentration reflecting the greater abundance and quality of reservoirs within the Upper Carboniferous foreland succession. ... In terms of general geographic area within the Maritimes Basin region, one of the most prospective areas likely occurs in northeastern Magdalen Basin coincident with the salt basin. This area contains a thick succession of Upper Carboniferous strata, abundant good quality source and reservoir rocks and a multitude of large salt structures. Those, in turn, supply numerous trapping opportunities..." "This assessment by the GSC constitutes a high level endorsement and a source of encouragement for our programs in the Magdalen Basin and our continued exploration of the Magdalen Islands property," said Gastem CEO Raymond Savoie. Gastem (64,544,000 shares outstanding) is an independent oil and gas exploration and development company based in Montreal. The company holds exploration and storage permits and rights to 3,135 km2 in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as rights and interests in New York State and in Appalachia. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. |
