Junex inc.

Junex inc.

March 16, 2006 10:46 ET

Junex announces the discovery of natural gas at Champlain

MONTREAL, Nov. 16 - Junex (JNX : TSXV) announces that the
Champlain No.1 well has attained a total depth of 750 meters. The well
encountered a high-pressure zone associated with significant natural gas shows
at depths of 655 and 662 meters. This situation necessitated the installation
of casing at a depth of 644 meters, after which the well was drilled down to
750 meters using a 3 7/8 inch-diameter drill bit. In addition, the presence of
primary and secondary porosity was observed in drill cuttings from depths of
655 and 662 meters.

All technical data are currently being analyzed and Junex foresees
contracting an independent firm to perform a production test in the near

"The Champlain No. 1 well results are very encouraging in that we are
progressing in our search for a "gas cap", which, as recommended by Géostock
in its pre-feasibility study, could be the cornerstone to development of a
subsurface natural gas storage facility. The results from the production test
will allow us to determine future operations for our subsurface natural gas
storage project in the Bécancour geologic horizon." commented Mr. Jean-Yves
Lavoie, the President of Junex.

The Champlain No. 1 well was drilled on an anomaly identified on data
acquired during a seismic survey in 2005. This type of anomaly correspond to a
natural brine productive reservoir zone previously encountered on the
Becancour bloc located at 3 km from the Champlain No.1 well.

Bécancour No.8 Well

Junex has also completed the drilling of the Bécancour No.8 well down to
a total depth of 1,048 meters. This well encountered faint natural gas shows
associated with the presence of brine. A production test is being performed to
evaluate the productive capacity of the brine. Also, two cores, totaling
34.15 meters, were cut in the Utica Shale by Junex's American partner.
Laboratory analysis of these core samples is currently underway in order to
better understand the physical and chemical properties of the Utica and to
establish its productive potential.

As a reminder, last July, Junex signed an exploration partnership
agreement with one of the most important independent natural gas producers in
the United States. The partnership's aim is to evaluate the natural gas
potential of the Utica Shale, the first phase of which consisted of the coring
of the Utica in the Bécancour No.8 well. Following its receipt of the core
analysis results, the American partner has six months to decide if it will
exercise its option to proceed with an $8 million pilot project in order to
better evaluate the productive capacity of the Utica Shale.

About Junex

Junex holds exploration rights in more than 4 million acres of land in
the Appalachian basin in the province of Québec. Recent major discoveries in
the United States and Eastern Canada have stimulated exploration in Québec,
which is located in a geological setting favourable for oil and gas discovery.
Junex's strategy is to reduce exploration risks by entering into partnerships
with other exploration companies. Parallel to its exploration efforts, Junex's
goal is to achieve positive cash flows from its natural brine and drilling
services operations. Junex also holds approximately a 12% interest in Petrolia
(PEA : TSXV) and an 8% interest in Gastem (GMR : TSXV).

Contact Information

  • JUNEX: Jean-Yves Lavoie, President and Chief of
    Operations, (418) 654-9661; Dave Pépin, Vice-President, Corporate Affairs, (418) 654-9661