Quebec to Open up shale oil and Gas Reserves
Quebec passed hydrocarbon legislation that's probably to open up shale Gas and Oil reserves to energy companies operating within the Province.
Bill 106, introduced in june, passed by a margin of 62 to 38. It creates a new agency to promote Quebec’s transition to cleaner energy however conjointly includes the petroleum Resources Act, which can clear the way for a lot of exploration.
Shares of companies that hold exploration rights, including Calgary-based Questerre Energy corp. (TXV:QEC) and Junex inc. (TXV:JNX) ,based in quebec city, surged in heavy trading last week as passage of the legislation looked probably.
Questerre holds regarding 1-M acres and has drilled test wells within the Utica shale formation on the St. Lawrence river, consistent with its website.
Questerre’s shares rose the most in additional than 8 years thursday and inched up once more friday. Junex’s stock increased 30 minutes, the most in almost 2 years. the company announced last month that its Galt No. 4 horizontal well has produced a complete of 17,798 bbls of light, sweet crude oil within the Province.
Bill 106 establishes a system for licensing and authorizing the exploration and production of oil and gas, that had been governed by the province’s Mining Act. It conjointly creates an energy transition fund for the payment of petroleum royalties.
Passage of the bill was “a necessary and critical pre-condition” for oil and gas exploration in Quebec, Questerre ceo michael Binnion said in an interview last week.
While Canada’s National Energy Board doesn't record Quebec as producing any marketable hydrocarbons of its own, the province holds enough Nat Gas alone to meet its own needs for regarding 100 years.
Most is locked up within the Utica shale formation along the St. Lawrence river or in deposits beneath Anticosti Island, consistent with the Canadian Association of petroleum Producers.
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