Junex inc.

Junex inc.

February 03, 2006 23:59 ET

Junex and Team Energy agree on an exploration partnership of $US24 Million

HOUSTON, TEXAS, Feb. 3, 2006 - Junex (JNX TSXV) and Team Energy
announced today the signing of an agreement leading to the investment of up to
US$24 Million over the course of three years for oil and gas exploration in
the province of Québec under permits held by Junex. The two companies had
previously signed a letter of intent as of October 4, 2005. As a follow-up to
the letter of intent, Team Energy and certain of its strategic partners have
created a Canadian company under the name AMQUE, U.L.C.

The agreement, signed this morning in the form of a term sheet, specifies
the respective interests that the two entities (Junex and AMQUE, U.L.C.) will
have on the seven blocks of permits affected by the agreement. The permits,
which are currently held by Junex and are situated in the Lower St-Lawrence
and Gaspé regions. In order for AMQUE, U.L.C. to earn its interest in the
Junex permits, it must spend a minimum of US$24 million in exploration
expenses on these properties over the course of the next three years.

"We are very proud that the signing of this agreement will allow Junex to
accelerate the development of its exploration projects. Our new partners, in
addition to having access to the capital necessary for exploration, combine
many years of experience in the oil and gas industry in the United States.
Their renowned expertise and network of contacts will be important attributes
for the growth of our company. Recent discoveries in the Appalachian basin in
the United States, the arrival of Talisman Energy on our territory, the
scientific information gathered by Junex over the course of the past five
years and, now, the partnership with AMQUE, U.L.C. are the elements which
allow us to be very optimistic for discovery for oil and gas in the province
of Québec" indicated the President of Junex, Mr. jean-Yves Lavoie, Eng.

According to the terms of the agreement, AMQUE, U.L.C. has the right to
earn 100% interest in four permit blocks aggregating approximately 500,000
acres. Junex will receive a 5% royalty on any production of oil and gas
stemming from these permits and will have an option to convert this royalty of
up to 15%.

AMQUE, U.L.C. will also have the right to earn an interest between 40%
and 85% in three other blocks of permits.

The agreement provides that AMQUE, U.L.C. must invest US$2.4 Million over
the course of 15 months in order to complete its analysis of geological and
geophysical characteristics of the properties. AMQUE, U.L.C. will then have
the option to invest US$21.6 Million over the course of the following 21
months in order to allow it to earn its interest in the properties set forth
above. If AMQUE, U.L.C. does not exercise the option to invest up to
US$21.6 Million, it will no longer retain any interest in the Junex permits.

The agreement also provides that AMQUE, U.L.C. will have a right of first
refusal on exploration projects in the St-Simon and Galt regions. Finally, the
permits held by Junex in the Batiscan, Champlain, Nicolet and Bécancour
regions are completely excluded from the agreement as well as all activities
related to the exploration, exploitation and production of natural brine.

"Quebec is a geological region which lends itself to the discovery of oil
and gas and we are very excited by the idea of participating in exploration
activities in this vast territory. We are confident that the expertise of our
team and our strategic partners will lead to oil and gas discoveries in the
future" stated Mr. Dennis Swager, President of AMQUE, U.L.C.

The agreement is subject to the negotiation of more detailed and
definitive documents and other conditions precedent.

About Junex

Junex is a unique company in that it is the only producer of natural
brine and the only producer of natural gas in the province of Quebec. In
parallel to its production activities, which are located in the Bécancour area
for natural brine and the Gaspé region for natural gas, Junex continues its
efforts to develop a natural gas storage facility under the Bécancour
industrial park. Junex holds permits representing in excess of 2.4 million
acres in Quebec as well as rights to participate in 50% of the revenues and
expenses on additional 1.6 million acres held by Petrolia (PEA: TSXV) in the
Gaspé region. Junex also holds a 12% interest in the shares of Petrollia.

About AMQUE, U.L.C.

AMQUE, U.L.C. has been created to carry out the joint venture exploration
program between Junex and the three principals of AMQUE, U.L.C along with
certain strategic partners. The executives of AMQUE, U.L.C. are Mr. Dennis
Swager, President of Team Energy, Mr. James Morabito, President of Agmen
Resources, and Mr. Dale Perdue, President of MidCentral Investments Inc.

Mr. Swager has significant experience as an operator of oil and gas
properties and as a manager of upstream oil and gas projects. Mr. Morabito has
vast technical, operational, and asset management experience dealing with
fractured carbonate reservoirs (TrentonBlack River) and unconventional black
shale plays in Eastern North America since 1986. Mr. Perdue has been actively
involved in the oil and gas business since 1973. MidCentral Investments, Inc.
is currently active in unconventional black shale gas plays and projects in
the Illinois Basin and conventional oil and gas projects throughout the
Michigan and Appalachian Basins.

The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.
%SEDAR: 00015378EF

Contact Information

  • Junex Inc.
    Mr. Jean-Yves Lavoie, P. Eng.
    (418) 654-9661

    Junex Inc.
    Mr Dave Pépin
    Corporate affairs
    (418) 654-9661

    AMQUE, U.L.C.
    Mr. Dennis Swager
    (618) 943-1010