Quebec Free From Natural Gas Supplies?

A great hydroelectric power is what Montreal(Quebec) is known for but now after the deposits of natural gas along the St. Lawrence Lowlands were found the province may precisely expand its influence as a Canadian power producer.

Michael Binnion, president and CEO of Questerre Energy Corp. said: "This now potentially over a long period of time puts Quebec in the position that it could become self sufficient in gas".

His company is one of the partners of Forest Oil Corp., which Tuesday announced a significant gas discovery in the Utica reserves between Montreal and Quebec City.

Shares of Forest and partners Questerre, Gastem Inc. and Junex Inc. rocketed Wednesday.

Gastem shares went up $1.38, or more than 123 per cent, up to $2.50, Junex shares hit 50 cents, or more than 58 per cent, up to $1.36, Forest shares inched up $2.08, or nearly four per cent, to US $54.57, while Questerre soared 31 cents, or nearly 38 per cent, to $1.13, after doubling on Tuesday.

First works to be started in 2009, with full-scale drilling the following year.

Binnion from the company's base in Calgary said three horizontal pilot holes are to be explored this summer would prove the long-term potential of the region.

At the moment Quebec imports all of its natural gas from Alberta. Quebec has long been the focus of natural gas drillers. While exploration of the St. Lawrence Lowlands is the most advanced, other large reserves are believed to exist in the Gaspe and the Anticosti Island.

Substantial gas production from the St. Lawrence alone could mean billions of dollars in royalty revenues for the province and furnish much needed employment along the heart of Quebec's south shore.