Junex inc.

Junex inc.

December 08, 2009 09:41 ET

Junex's Partner Commits to Drilling the Utica Shales on the Richelieu North Permit

QUEBEC CITY, QUEBEC--(Marketwire - Dec. 8, 2009) - Junex Inc. (TSX VENTURE:JNX) is pleased to announce that its partner, Canadian Forest Oil Ltd. ("Forest"), has committed to the drilling and completion of a horizontal well in the Utica Formation in order to earn an interest in the Lorraine and Utica Shale sections of the Richelieu North Permit in the Contrecoeur area, located approximately 50 kilometers from the city of Montreal.

Contractually, Forest must spend $4 million to earn 60% working interest in the Shale section of the lands. In such event, Junex will retain the 40% balance of the working interest in the Shale section of the lands along with a 100% working interest in other geological formations, including the Trenton/Black River.

In its work commitment, Forest has proposed to drill a vertical pilot hole and acquire wellbore data in the winter of 2010, then analyze the acquired wellbore data, followed by the drilling and completion of a horizontal wellbore in the Utica Formation in the summer of 2010.

"We are pleased that Forest is planning to move ahead on the Richelieu North Permit. This effort will complement Junex's exploration operations focussed on evaluating the Shale Gas potential of its vast land base in the St. Lawrence Lowlands" commented Junex's CEO, Mr. Jean-Yves Lavoie, P. Eng.

Trenton- Black River exploration well in St-Antoine-sur-Richelieu

Junex drilled the St-Antoine-sur-Richelieu #1 well on the Richelieu North Permit in 2008. The primary target of the well was to test a fault-bounded "sag" zone in the Trenton / Black River that was identified on seismic data. Drilled with the Company's Foragaz #2 drilling rig, the well reached a total depth of 1,475 meters in the Potsdam Formation, then was cased. Natural gas shows were recorded during the drilling of portions of the Lorraine Shale, the Utica Shale, Trenton / Black River carbonates, Chazy carbonates, Beekmantown carbonates, and Potsdam clastics. The Company's Foragaz #1 rig was then moved onto the well and Junex proceeded to perforate, acidize and test a portion of the Beekmantown Dolomite, where significant gas shows were observed during the drilling of the well were recorded and where well logs indicated porosities of between 6 and 10%. While the formation is porous, the results of these operations indicate that the perforated interval contains very low permeability. In the Chazy oolitic limestones unit, where significant gas shows associated with a hydrothermal dolomite zone were observed, perforation, acidification and test were completed. The results of these operations indicate that the perforated interval contains very low permeability. The well has been suspended and the cased wellbore could be used by Junex and its partner in possible future operations in the Utica and Lorraine Shale intervals where significant gas potential exists.

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