Ressources & Energie Squatex, which is the operator of the field, discovered the new oil reservoir, while Petrolympic holds a stake in 217,370 hectares of the property through a joint venture with Squatex.

Squatex found gas flows at 1,847 deep in the core hole Massé No.1 in the Mitis River area, when carrying a stratigraphic coring program, which started in 2010.

The company anlaysed the cores and revealed that the reservoir is situated in the Silurian Sayabec formation.

The reservoir is expected to include 10m thick interval of hydrothermally dolomitised limestone with high porosity and permeability values up to 20.8% and 1624 mD, reported Squatex.

Squatex noted that hydrothermal dolomitsation is the generation mechanism of many world-class conventional reservoirs in North America, such as Albion-Scipio in Michigan and Lady-Fern in British Columbia.

According to Squatex, hydraulic fracturation is not required for this type of reservoirs, while the newly discovered reservoir is composed of 89% methane and devoid from hydrogen sulfide.

Petrolympic also has 100% interest in two exploration permits in the same area, which include Matapedia and Mitis properties.

Petrolympic has oil production asset in the prolific Maverick Basin of Texas, US and also holds an interest in a total of 754,216 hectares (1,863,668 acres) of oil and gas exploration permits in the Appalachian Basin of Quebec.