July 9, 2008
Gastem Obtains Magdalen Islands Permit
Gastem (TSX VENTURE: GMR) is pleased to announce that it has obtained the exploration permit to the Magdalen Islands, situated in the Gulf of St. Lawrence. The permit covers approximately 20,000 ha and is situated in the heart of as yet untested major source/reservoir structures.
The Magdalen Islands are situated in the Magdalen Basin which contains a large number of giant saliferous structures of the type found in the Gulf of Mexico. The Basin is believed to be one of the largest potential areas for natural gas in Eastern Canada and has been evaluated as having a low risk to reward ratio. The saliferous structures on which are lying the Magdalen Islands originate from evaporites of the lower Carboniferous Windsor Group. The upper Carboniferous rocks (interbedded sandstones and shales) are cut by these structures, creating a potential combination of traps and reservoir rocks for the natural gas generated in the underlying formations.
The Basin extends from the middle of the Gulf southward, including the Old Harry mega-structure to producing fields in New Brunswick westward. The Magdalen Islands are central to this Basin and have been the site of numerous gas occurrences, various studies and seismic programs but has not otherwise been the subject of a completed drilling program. Previous estimates of gas potential for the Magdalen Islands area are being reviewed by Gastem.
At present, Gastem is undertaking a detailed review of existing information and preparing a NI 51-101 compliant technical report. Once the review and report completed, the Company will present to the Board an exploration program for approval.
"The gas potential of the Islands and the Basin will be a major source of interest in the coming months," said Chairman and CEO Raymond Savoie. "Combined with our Utica shale projects in Quebec and New York, the Magdalen Islands gives the Company increased momentum for growth and development."
Gastem is an independent oil and gas exploration company based in Montreal. The company holds exploration and storage rights to over 1.1M acres of land in the St. Lawrence Lowlands and the Gaspe Peninsula in Quebec. Gastem USA is a wholly owned subsidiary of Gastem and has an option to acquire a 65% interest in properties situated in New York State and has revenues from a minority participation in the Amber Bank shale gas project in West Virginia. Other development projects are being evaluated.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contacts: Gastem Inc. David Vincent 514-875-9034 [email protected]
SOURCE: Gastem Inc.