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The Lowlands are situated in Quebec, south of the St. Lawrence River between Montreal and Quebec City. Building a circular economy on a significant discovery on Quebec Utica could result in the second lowest supply gas cost in North America.
The Company’s primary objective remains the implementation of a business and political solution for the development of its natural gas discovery in the province. Concurrently, it is protecting its legal rights following the enactment in August 2022 of Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities in Quebec (“Bill 21”).
The Company’s primary objective remains the implementation of a business and political solution for the development of its natural gas discovery in the province. Concurrently, it is protecting its legal rights following the enactment in August 2022 of Bill 21.
During the third quarter, the Company was advised that the Supreme Court of Canada declined to hear its application to appeal the decision from the Quebec Court of Appeal on the stay of application of Bill 21. The ruling by the Quebec Court of Appeal in May 2025 annulled a decision by the Quebec Superior Court justice in January 2024 suspending key provisions of Bill 21. The Government of Quebec is now permitted to enforce the specific provisions related to the abandonment and reclamation of existing wells. In March 2026, the Company was advised the Government is seeking proof of solvency for $11.4 million for the estimated gross abandonment and reclamation costs for these wells. Pursuant to Bill 21, the Government is responsible for 75% of these costs. The Company intends to work collaboratively with the Government to meet its obligations on a reasonable and timely basis.
The Company is also proceeding with the main hearing on the merits of the case in accordance with procedural rules in Quebec, including its debate on the constitutional validity of Bill 21. The questioning of key Government representatives was completed in September and October the fall of 2025. Subject to completion of pre-trial motions and other procedural matters, the Company is seeking a date for the main hearing in 2026.
The CIRAIG report:
