Subject to the final results from a pilot program and ongoing negotiations with GazMetro, the province's gas distribution utility, the current timeline could see gas on production as early as mid-2011, the Calgary-based junior said in a news release.

"Our goal for this next phase is to have a pad development producing and selling natural gas in Quebec," company president Michael Binnion said in a statement.

The decision to move ahead with the commercial pilot was based on positive results from the St. Edouard No. 1A well, which were released earlier. The company is awaiting the results of a second well drilled in partnership with Talisman Energy.

In other news, the company reported second-quarter financial results that showed flat revenues of $2.8 million compared to $2.9 million in the same period of last year. Despite lower production of 620 barrels of oil equivalent per day compared to 806 boe/d in the second quarter of 2009, the company increased its working capital surplus to $160.93 million from $50.95 million in the same period.

The company's Torontolisted shares closed at $2.98 Friday, unchanged on the day.