PETROLYMPIC PROPERTIES IN QUBEC

TO OFFER LOCALLY-PRODUCED OIL & NATURAL GAS TO A STRIVING MARKET

APGQ-QOGA
8th annual meeting
Montral October 31, 2016

OTCQB: PCQRF TSX-V: PCQ

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SLIDE 2

SAFE HARBOUR STATEMENT

This presentation contains certain forward-looking statements concerning future
operations, economic performances, financial conditions, and financing plans. These
statements are based on certain assumptions and analyses made in light of
management experience, perception of historical trends, current conditions, and
expected future developments as well as other factors that management believes are
appropriate in the circumstances. However, whether actual results and developments
will conform to management expectations and predictions is subject to a number of
risks, uncertainties, and assumptions. Consequently, all the forward-looking statements
made in this document are qualified by these cautionary statements and there can be
no assurance that the results or developments anticipated by management will be
realized, that they will have the expected consequences to or effects on the company
and its subsidiaries or its business operations.

Management undertakes no obligation and does not intend to update or revise any
forward-looking statements, whether as a result of new information, future events, or
otherwise, except as may be required under applicable laws. For all these forwardlooking statements, management claims the protection of the safe harbour for forwardlooking statements contained in the U.S. Private Securities Litigation Reform Act of
1995.

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SLIDE 3

COMPANY PROFILE
Listed on TSX-V:PCQ and OTCQB: PCQRF
Toronto-based public E&P company funded in 2007
O&G exploration in Quebec through its subsidiary Petrolympia
for conventional reservoirs and for the Utica Shale
Oil production in Texas from Eagle Ford Shale
New oil asset in Western Canada
Focus on assets with unlimited growth potential
1.86 million acres (750,000 ha) position in world -class plays

Common Shares

105.5 million

Insider
Ownership

45 %

Debts

None

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SLIDE 4

POSITION IN QUBEC
Petrolympic holds interests with unlimited potential in the Gasp / Lower St. Lawrence
Conventional reservoirs
One reservoir independently validated 61.1 MMBOE (Sproule, 2016)
2017-2018 program designed to add a potentially unlimited value to the properties

Petrolympic also holds additional interests in the St. Lawrence Lowlands

Diversified conventional reservoirs (sandstones, carbonates and dolomitized plays)
Proven unconventional reservoirs (Utica Shale)

$20M invested so far in all the properties

Petrolympics assets are close to local industries and end-users

There is real political and social support for local development of conventional reservoirs and
the company intends to establish and maintain a good and respectful relationship with the
communities and the land users, in line with the future hydrocarbons law and regulations
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SLIDE 5

SOCIAL ACCEPTABILITY STRATEGY

Petrolympic intends to root its activities in the local social and economic fabric
Identify the local needs and strengths, the social and environmental constraints
Seek local partnerships for the benefit of the communities
Strong will to work WITH the communities, never against them
Strong will to bring something more, not to destroy what already works well

Develop and enforce a comprehensive social acceptability action plan

Petrolympic favors direct dialogue with the stakeholders in a non -passionate environment
Give time to the dialogue, take the time to collect factual data

Revise the programs according to the recommendations of the stakeholders

Accountability: in the long run, establish follow-up comities on the different projects

Period of regulatory uncertainty for everybody

Difficulty (on both sides) to discuss technical aspects until the regulatory framework is clarified
Best efforts deployed to anticipate the new regulations and get inspiration from them and,
by default, stick to recognized industrial and social best practices
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SLIDE 6

LOWER ST. LAWRENCE / GASP PENINSULA

100% interest in the
Matapdia and Mitis
properties
MASS

100,542 acres / 40,688 ha

Total assets interests in

Lower St. Lawrence:

_______

1,165,957 acres / 471,848 ha

MITIS
MATAPDIA

30% interest in properties

held by joint venture
partner Squatex Energy and
Resources Inc.
1,065,415 acres / 431,160 ha

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SLIDE 7

MATAPDIA PROPERTY
Several prospects with superposed
conventional structural traps
Hosted in Early Devonian Forillon /
Indian Cove limestone and underlying
Silurian Sayabec limestone / Val-Brillant
sandstone
Target depths range:
1,970-8,200ft / 600-2,500m
Reservoir analogues already validated
in eastern Gasp (Forillon / Indian Cove
in Galt and Bourque fields), in Mass
(Sayabec) and in Pennsylvania/ West
Virginia (Val-Brillant equivalent)

5 km

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SLIDE 8

LAC ALFRED STRUCTURE IN MATAPDIA

Example of drillable prospect in Matapdia
highlighted by reprocessed governmental
seismic:

3-way faulted anticline closure in Forillon Fm

Estimated depths:
Top Forillon: 4,020ft / 1,220m

Total depth of well: 4,725ft / 1,440m

Inverted growth fault sealed by Shiphead and
Indian Cove formations, development of natural
fracture networks and possible hydrothermal
dolomitization in the underlying Forillon Fm

1km

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SLIDE 9

VAL-DIRNE STRUCTURE IN MATAPDIA

Example of prospect in Matapdia highlighted by
reprocessed governmental seismic:

3-way faulted anticline closure in Forillon Fm

Estimated depths:
Top structure: 2,625ft / 800m
Total depth of well: 5,085ft / 1,550m
Abundant oil and gas shows are documented
in shallow offset wells in close vicinity. Gas
smells are also documented on outcrops in the
Forillon Formation

1km

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SLIDE 10

MITIS PROPERTY
Conventional structural traps
Hosted in Silurian Val-Brillant
sandstone

Target depths range:

1,800-7,300ft / 550-2,225m
Reservoir analogues already
validated in Pennsylvania/ West
Virginia (Val-Brillant equivalent)
Regional offset data confirm the
potential
At depth in Mass No 2 well (secondary porosity)

5 km

On outcrops (bitumen-filled porosity)

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SLIDE 11

LAC CHEVREUIL STRUCTURE IN MITIS

Example of drillable prospect in Mitis highlighted by reprocessed proprietary seismic:
Two flat spots (black arrows) hosted in ValBrillant sandstone in a faulted anticline

Direct indicators of fluids

Estimated depths:
Top shallow target: 1,850ft / 565m
Top deep target: 2,360ft / 720m
Total depth of well: 2,950ft / 900m
Drilling program in preparation

1km

On outcrop the Val-Brillant sandstone locally exhibits secondary porosity through dissolution during
burial diagenesis, filled with bitumen coatings (porosity averages 10%, with up to 20% locally)
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SLIDE 12

2017-2018 EXPLORATION PROGRAM

Phase I
Mitis

1 deviated exploration well to test Lac Chevreuil structure

40mi / 65km of infilling and exploratory seismic

Matapdia

1 vertical exploration well to test Lac Alfred structure

75mi / 120km of infilling and exploratory seismic

Fieldworks

Combined in both properties

Phase II

Mitis

2 exploration wells to test additional structures

1 production well

Matapdia

4 exploration wells to test additional structures

1 production well

Exploration program is conditional to results, permitting, equipment availability and funding

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SLIDE 13

DISCOVERIES IN THE MASS STRUCTURE

Conventional reservoir discovered, independently evaluated by Sproule (2016) 61.1 MMBOE
Mass No 1 (total depth 6,148 feet / 1,874 meters)
Reservoir characteristics (Sproule 2014)
Depth: ~ 1,850m
Thickness: ~ 10m
Porosity up to 20.8%
Permeability up to 1,624 mD
Charge: 89% methane
No H2S

(Source: Squatex)

Dark brown (D8) oil with 19.85 API and less than 1%
sulfur. Sample collected at surface (Mass No 2)

Mass No 2 (total depth 6,463 feet / 1,970 meters)

Hydrocarbon charge
Heavy oil (19.85 API and 0.953% sulfur)
Methane and condensates
No H2S
Well being monitored and maintains its pressure

MASS No 2

OIL
GAS
GAS
OIL
GAS
GAS

MASS No 1

S
2008-SQX-04

GAS + OIL
OIL
GAS
GAS
1 km

2005-SQX-01

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SLIDE 14

CONFIRMATION OF THE EXPLORATION STRATEGY

Confirmation that hydrocarbon-bearing intervals can be successfully located through processing of
seismic AVO anomalies
Opens the way to test additional drilling targets in a vast region around the Mass structure

Three main conventional plays are now considered on the Property:

Naturally fractured carbonates
Hydrothermal dolomitization
Pinnacle reefs
Two main formations targeted in the Siluro-Devonian:
The Sayabec limestone
The Val-Brillant sandstone
Ongoing academic research project with focus on:
Internal architecture of the Sayabec Formation
Relationships with hydrothermal dolomitization and
O&G potential

(Source: Squatex)

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SLIDE 15

ST. LAWRENCE LOWLANDS

100% interest in 1 property
138,754 acres / 56,152 ha
_______

Total assets interests in

St. Lawrence Lowlands:
694,573 acres / 281,085 ha

30% interest in properties

held by joint venture
partner Squatex Energy and
Resources Inc.
536,051 acres / 216,933 ha
and
12% interest in properties
farmed out by Canbriam
Energy Inc.
19,768 acres / 8,000 ha

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SLIDE 16

ST. LAWRENCE LOWLANDS

Majority of Lowlands properties are in the area
prospective for the Utica Shale gas and the
conventional Trenton-Black River HTD play

Properties are at the heart of the industrial

Quebec, with high local demand for natural gas
and good pipeline networks
Utica Shale GIIP estimated to 183Tcf for the
Lowlands by the Geological Survey of Canada (2014)

Canbriam farmout is focused on developing this

shale gas asset but has been put to a halt till fraccing
moratorium is lifted
Trenton-Black River HTD play has good production
history immediately south of the border in NY State
Shallow platform carbonates and sands in SW corner
are equally prospective and inexpensive to develop

Utica Shale gas and Trenton-Black River

Shallow platform carbonates and sands

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SLIDE 17

POISED FOR HIGH GROWTH IN QUEBEC

Petrolympic is well positioned to take advantage of a diversified portfolio of assets:
1.86 million acres (750,000 hectares) land position 100% owned and JV partnership
Utica Shale and conventional plays in St. Lawrence Lowlands Dry gas
Conventional plays in Gasp / Lower St. Lawrence Gas, condensates, oil
Short- and mid-term economic models to develop Petrolympics properties capitalize on the
high demand for locally-produced oil and natural gas
Petrolympics policies are oriented to:
Maximize the economical benefits for the region and for Qubec
Develop the resources in an environmentally and socially responsible way
Establish and maintain a good relationship with the communities and the land users

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SLIDE 18

Contact:
Mendel Ekstein, President and CEO

Andreas Jacob, Vice-President

Petrolympic Ltd.
36 Toronto Street, Suite 1000

Toronto M5C 2C5 ON

Ph: +1 845-656-0184
info@petrolympic.com

www.petrolympic.com
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