Junex inc.
TSX VENTURE : JNX

Junex inc.

February 02, 2015 08:00 ET

Following Rapid Pressure Build-up, Junex Starts a Longer Production Test at its Galt No. 4 Horizontal Well

QUEBEC CITY, QUEBEC--(Marketwired - Feb. 2, 2015) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") announces that, since shutting-in the well for pressure build-up about one week ago, technical data was collected at the surface as to the oil level and the pressure build-up in the well. These data indicate that a rapid pressure build-up has occurred since pumping the 2,017 barrels of light, sweet oil during the production test in the Galt No. 4 Horizontal well. In addition, the oil level in the well is stable. It is Junex's opinion that these are indicative of an oil reservoir with very good reservoir characteristics.

In light of these new technical data, Junex will resume its production testing operations in its Galt No. 4 Horizontal well in the upcoming days once it reconfigures the surface pumping equipment with the aim to pump oil at a higher rate than 161 barrels of oil per day ("BOPD") previously recorded (see press release from January 27, 2015). Also, the well will be pumped for a longer period of up to 1 1/2 months in order to produce a larger volume from the Forillon reservoir surrounding the wellbore such that a better understanding as to the reservoir characteristics should be obtained for future optimal development of the oil accumulation.

"This milestone well has performed better than our expectations and this has stimulated us to significantly modify our production testing program. Because of the positive pressure response and the stability of the oil level, we have curtailed the original 12 week period of well shut-in and instead we will endeavor to pump the well at a higher rate over a much longer test period, then shut-in the well over the period of spring break-up to record the pressure build-up on the downhole gauges already in the well. Once spring break-up is over, we will retrieve these gauges then the recorded data will be analyzed." commented Mr. Peter Dorrins, Junex's President & Chief Executive Officer.

Junex holds a 70% interest in the Galt Oil Property, with Junex's partner, Mr. Bernard Lemaire, holding the remaining 30% interest. Junex holds 100% interest in the adjacent acreage. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential. These landholdings are situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.

Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, has previously established their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources for the Forillon and Indian Point formations on the Galt Oil Property at 330 million barrels that includes Discovered Contingent OIIP volumes of 36 million barrels and Undiscovered Prospective OIIP volumes of 294 million barrels (see press release from March 27, 2013 for details of the NSAI report).

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 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 and holds a significant land-package on the Anticosti Island where an independent report has provided their Best Estimate of the undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on all five of Junex's permits on Anticosti Island at 12.2 billion barrels. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, the company operates a drilling services division.

Forward-Looking Statements and Disclaimer

Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to Junex at the time and involve known and unknown risks, uncertainties and other factors that may cause Junex's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Junex's business and activities appears under the heading "Risks and Uncertainties" on pages 8 to 11 of Junex's 2013 annual management's discussion and analysis, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Junex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Junex. Junex disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Junex Inc.
    Mr. Peter Dorrins
    President & Chief Executive Officer
    418-654-9661

    Junex Inc.
    Mr. Dave Pepin
    Vice President - Corporate Affairs
    418-654-9661