MAJOR AGREEMENT FOR THE EXPLOITATION OF HYDROCARBONS AT PESSAMIT

QUEBEC CITY, Nov. 22 /CNW Telbec/ - The Innu Council of Pessamit announced that it has entered into a major agreement for a gas exploration project with a consortium headed by TransAmerican Energy. "We have authorized gas exploration on the territory of the Pessamit reservation, in accordance with our title and rights over its natural resources," said the Chief of Pessamit, Mr. Raphaël Picard.

Under this exclusive agreement, the government of Pessamit will have sole ownership of all hydrocarbons on the reservation, while the consortium is authorized to explore for gas and other hydrocarbons. The consortium will exploit the hydrocarbons under the terms of a final agreement.

Preliminary analyses have identified certain zones in the St. Lawrence River estuary and the Côte-Nord region that are likely to contain large quantities of hydrocarbons. Initial surface geophysical work will be performed over the coming months to confirm the potential for hydrocarbon exploitation.

The agreement grants exploration rights (over hydrocarbons) similar to those recently conferred by the Mining Exploration Board. In return, the companies recognize the Council's governmental authority over the exploitation of natural resources. They further recognize that Pessamit will have sole ownership of all hydrocarbons on its land, and they undertake to respect the rights and titles of the Innus of Pessamit over the zones outside the reservation.

"That there should be hydrocarbons on the reservation seems only fair, knowing that our nation has long been dispossessed of its resources. Exploitation of these resources in accordance with our rights represents a major development opportunity," explained Chief Picard.

About the Innu Council of Pessamit

The Innu Council of Pessamit is the political body representing nearly 4,000 members of the Pessamit community. The reservation, covering an area of 25,242 hectares, is located on the north shore of the St. Lawrence River, 54 kilometres southwest of Baie-Comeau.

For further information:

Éric Cardinal
Office: 450-638-5159 / Cell: 514-258-2315
[email protected]