Junex Inc.

Junex Inc.

July 03, 2012 10:05 ET

Junex Announces That Its Junex Galt #4 Exploration Well is Underway

QUEBEC CITY, QUEBEC--(Marketwire - July 3, 2012) - Junex (TSX VENTURE:JNX) is pleased to announce that it commenced drilling its Junex Galt #4 exploration well situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.

The Junex Galt #4 exploration well, being drilled vertically with Junex's Foragaz No. 3 drilling rig to a licensed total depth of 2,000 meters, is designed to evaluate the petroleum potential of the Forillon Formation reservoir in a structurally higher position and nearer to a major fault zone than wells previously drilled on the Galt structure. Junex believes that the reservoir quality of the Forillon could improve nearer to the fault zone where an increased number of natural fractures might exist and where further reservoir enhancement by hydrothermal dolomitization within these fractures might have occurred. This well location is based on the detailed integration, evaluation and interpretation of a number of data including information collected from past wells drilled as well as other geoscientific, engineering and seismic data acquired by Junex.

The petroleum potential of the Forillon Formation on Junex's Galt Field property was previously evaluated for Junex by Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas. In its report, NSAI placed their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources at 260.2 million barrels for the Forillon Formation on Junex's Galt Field property. This 260.2 million barrel figure includes Discovered Contingent OIIP volumes of 26.3 million barrels and Undiscovered Prospective OOIP volumes of 233.9 million barrels. Details about these figures can be reviewed in a press release originally published by Junex on October 24, 2011.

NSAI further provided its Best Estimate of Junex's net share of the total unrisked Recoverable Oil Resource Volume on its Galt Field property at 19.5 million barrels (15% recovery factor), that includes 0.19 million barrels of Recoverable Contingent Oil Resources and 19.3 million barrels of Recoverable unrisked Prospective Oil Resources. Similarly, details about these figures can be reviewed in a press release originally published by Junex on October 24, 2011.

Mr. Jean-Yves Lavoie, P. Eng., Junex's Chief Executive Officer, commented, " This is the first new well to be drilled by our industry in the province of Quebec since December 2010. Our current efforts at Galt form an integral part of our strategy to explore our portfolio of oil properties. The drilling of the Junex Galt #4 well demonstrates our resolve in further defining the significant petroleum potential of our Galt property. If this well proves to be commercially successful, then this could have a considerable positive impact on the value of our company."

Junex controls a 50% working interest in the 16,645 acre-sized Galt 1 property where the Galt #4 exploration well is being drilled and it also controls a 100% working interest in the 36,816 acre-sized Galt 2 property surrounding the first permit. Junex will drill the Galt #4 well at its sole cost.

About the NSAI Report

Details about the NSAI Report were previously announced by Junex in a press release on October 24, 2011 and it is recommended that the reader consult this press release for further information. The resource estimates in the report must be treated as scoping level estimates and used with caution.

Discovered resources oil-initially-in-place (OIIP) volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in known accumulations prior to production.

Contingent resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations but for which the applied project or projects are not yet considered mature enough for commercial development because of one or more contingencies.

The contingent resources estimated in the NSAI Report are contingent upon (1) the application of modern drilling and completion technology to establish significantly higher wellbore productivity (2) demonstration of the economic viability of project development, and (3) activity prior to expiration of the leases.

Undiscovered resources OIIP volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in accumulations yet to be discovered. Prospective resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Unrisked prospective resources are estimated ranges of recoverable oil volumes assuming a petroleum discovery is made and are based on estimated ranges of undiscovered in-place volumes. If discovered, there is no certainty that the resources will be commercially viable or be able to produce any portion of the prospective resources.

The resources evaluated in NSAI's Report were determined from a range of possible values for multiple parameters. These parameters were limited to the critical driving factors for both statistical and practical reasons. The range and number of parameters rely on the available direct and analog data from similar reservoirs in a more mature development stage. It will be necessary to revise these estimates as additional data become available. Also, estimates of resources may increase or decrease as a result of future operations.

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, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations.

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.

Contact Information

  • Junex Inc.
    Mr. Jean-Yves Lavoie
    Chief Executive Officer

    Junex Inc.
    Mr. Dave Pepin
    Vice President - Corporate Affairs