Junex inc.

Junex inc.

November 12, 2009 10:36 ET

Junex Earns an Interest in the Nicolet Permit Through the Drilling of the St-Gregoire No. 2 Well

QUEBEC CITY, QUEBEC--(Marketwire - Nov. 12, 2009) - Junex (TSX VENTURE:JNX)is pleased to announce that it has earned a 50% working interest in the interval from the surface to the base of the Utica Formation in the Nicolet permit, which covers 54,363 acres and is located in the heart of the St. Lawrence Lowlands Utica play (see press release dated June 15, 2009).

Junex earned this working interest in the Nicolet property by drilling two wells on the Nicolet property to the base of the Utica Formation, of which the St-Gregoire #2 well was the second earning well. Prior to the drilling of this well, Junex completed a seismic survey of approximately 14 line-kilometres to position the well proximal to and on the downthrown side of the Yamaska Fault Zone. This well was drilled to total depth of 1,619 meters and a total of 42.6 meters of cores was cut in the Utica Shale. These cores were conserved by and sent to CBM Solutions for laboratory analysis.

The St-Gregoire #2 well also encountered significant natural gas shows with overpressure in lower sections of the wellbore, necessitating the installation and cementing of 7 inch diameter intermediate casing in the well. The Utica Formation is approximately 247 metres thick in the well and isotopic analysis of the gas indicates that it is thermogenic in origin.

Preliminary core analysis results have been received: preliminary gas contents of the Utica cores of up to 38 standard cubic feet per ton (scf/ton) have been measured. Final results are expected in the coming weeks as sufficient time must be allowed to permit more thorough degassing and measurement of the sorbed gas to occur.

Subject to final core results and all other scientific data collected in the St. Lawrence Lowlands Basin, Junex and its partner, Canadian Quantum Energy Corporation, plan to implement an exploration program in the coming months that may include completion of one or both wells drilled on the Nicolet property.

Core Analysis Results from the St-Gregoire No. 3 Well

Drilling operations on the first of the two earning wells, the Junex St-Gregoire No. 3 well, were completed in the spring of 2009. This 875 metre-depth well, cased to total depth with 7 inch diameter production casing, targeted the Ordovician Lorraine and Utica Shales on the upthrown side of the Yamaska Fault on the Nicolet block. The presence of natural gas was confirmed in the shale section and two 9-meter long cores were cut in each of the Lorraine Formation and the Utica Formation. Isotopic analysis of the gas indicates that the gas is thermogenic in origin.

As in the case of the St-Gregoire No. 2 well, these cores were analyzed by CBM Solutions for various components, including total gas content, total organic carbon (TOC) and porosity. The Lorraine cored interval yielded TOC's of up to 2.6%, effective porosities of up to 2.9%, and total sorbed gas contents of up to of 12.9 scf/ton. The Utica cored interval yielded TOC's of up to 2.6%, effective porosities of up to 5.3%, and total sorbed gas contents of up to 22.5 scf/ton.

"The preliminary results of these two first wells at Nicolet demonstrate the Shale Gas potential of both the shallow and the deep parts of the permit" said Jean-Yves Lavoie, President and Chief Executive Officer of Junex. "The measured amounts of total sorbed gas are generally consistent with those that we've observed elsewhere in prospective parts of the play trend. Furthermore, the significant gas shows associated with overpressure in the St-Gregoire No. 2 well, combined with the preliminary results of gas content in the cores, are all very encouraging data that demonstrate the gas potential of the deeper part of the permit, which covers approximately 75% of the lands. With our partner, Canadian Quantum Energy Corporation, we are planning to jointly advance in the project by implementing an exploration program in the near future."

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the Province of Quebec. The company is in the heart of the Utica Shale gas discovery located in the Ste Lawrence Lowlands. As of June 30 2009, Junex has a working capital of 26.7 million dollars. Junex also owns approximately 7.9% of the issued and outstanding shares of Petrolia (TSX VENTURE:PEA) and 1.0% of the issued and outstanding shares of Gastem (TSX VENTURE:GMR). In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations.

Forward looking statements

This news release contains certain forward-looking statements. These statements relate to future events or future economic performance of Junex and carry risks, uncertainties and other factors - both known and unknown - that may appreciably affect their respective results, economic performance or accomplishments when considered in light of the content or implications of statements made by Junex. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Junex do not intend and undertake no obligation, to update these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Junex
    Mr. Jean-Yves Lavoie
    Mr. Dave Pepin
    Vice President - Corporate Affairs