QUEBEC CITY, QUEBEC--(Marketwired - Feb. 13, 2014) - Junex Inc. ("Junex") (TSX VENTURE:JNX) is pleased to announce the signature of a Letter of Intent (the "Agreement") with Ressources Quebec ("RQ") whose goal is to complete the evaluation of the petroleum potential of Junex's exploration permits on Anticosti Island. This 233,275 acre-sized landholding is 100% held by Junex and contains, according to Netherland, Sewell & Associates, Inc., a resource potential of 12.2 billion barrels of oil initially-in-place in the Macasty Shale(i).
According to this Agreement, the partners commit, if the financing is completed, to perform an exploration program in two phases for a maximum total amount of $90 million financed by RQ and a third party industry player who remains to be identified and who will be at arm's length. In exchange for its investment, Ressources Quebec and the industry partner will earn an interest of 80% in a special purpose vehicle created for the project (the "SPV") which will control 100% of Junex's Anticosti Island permits.
Phase 1 of the exploration program will be composed of nine (9) wells for which the budget is estimated at $50 million:
- the drilling of three (3) exploration wells that will evaluate the Macasty Shale and deeper conventional targets;
- the drilling of four (4) stratigraphic tests; and
- the drilling, completion and massive fracture stimulation of two (2) horizontal wells drilled into the Macasty Shale (with a 1,000 metre-long horizontal leg and 8 stages of fracture stimulation in each well).
The exploration program for Phase 2 will be defined after the completion of Phase 1 and will be subject to approval of the SPV's Board of Directors to proceed with Phase 2. RQ and the third party will finance this phase up to the financial commitment of $90 million, and, thereafter, the partners will finance the project according to their respective working interest levels.
This Agreement is subject to the conclusion of an accord with a third party industry player by October 31, 2014, at the latest.
About the Petroleum Potential on Junex's Permits on Anticosti
Junex's permits on Anticosti are principally situated in the Deep Fairway. The evaluation of the petroleum potential of these permits was performed by Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, who had placed their Best Estimate of the undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on Junex's acreage at 12.2 billion barrels (see Junex's September 28, 2011 press release for more details about NSAI's report).
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.
About Ressources Québec
As a subsidiary of Investissement Québec, Ressources Québec is the gateway for companies seeking to invest in the mining and oil and gas industries. Ressources Québec supports resource companies at every stage of their projects, from exploration and development through to processing. It offers a full range of financial products, including investments in equity, debentures and various types of loans.
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 2010 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 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.
||See September 28, 2011 press release for more details about the NSAI report