Junex inc.

Junex inc.

August 18, 2005 12:24 ET

Junex announces the results of Becancour no. 7 well


Junex announces that it has completed drilling on the Becancour No. 7 well at a depth of 1,067 metres. A
series of 5 Drill Steam Tests (DST) have identified a production zone at a
depth of 870 meters, located in the Trenton Black River formation. Following
the installation of a screw pump and a down-hole pressure gage, Junex
performed a 56-hour production test for both natural gas and natural brine.

During the final 23 hours of the "Four Point Isochronal" production test,
the well generated an average production of 182 mcf/day of gas, and an average
of 62 000 liters/day of natural brine with a formation pressure of 6,933 Kpa.

"This is the second consecutive well that shows the presence of a
reservoir of excellent quality in the Trenton Black River formation, a proven
structure for oil and gas production in Northern New York State. The
preliminary results of this test are very encouraging in terms of improving
our natural brine production capacity, as well as in regards to achieving our
objective of identifying a gas cap to justify the development of an
underground storage reservoir for natural gas" indicated Mr. Jean-Yves Lavoie,
P. Eng.

Subsequent to these results, Junex mandated the Geological Survey of
Canada to complete a geochemical study of the Trenton Black River reservoir
zone. Additionally, Junex mandated Geostock, an international specialist in
natural gas storage, to perform an analysis and re-interpretation of all of
Junex's geophysical data on the Becancour area in order to develop a
structural model to better define future drillings targets.

The Becancour No. 7 well should be brought into production for natural
brine in the coming weeks, at the same time enabling Junex to evaluate the
well's natural gas production capacity. Junex's goal in Becancour is to
develop subterranean natural gas storage facilities while, in parallel,
producing the natural brine found in these underground reservoirs.

About Junex

Active in the natural resources sector, Junex is a unique company in
Quebec since it is the only natural brine and natural gas producer in the
Province. In parallel to it's production activities, located in the Bécancour
area (brine) and in Gaspé (natural gas), Junex continues its efforts to
develop a natural gas underground storage facility beneath the Bécancour
industrial park. With more than 4 million acres under exploration permit in
Quebec (including the permits held by Petrolia on which Junex holds a 50%
interest in future production), Junex is also the leading oil and gas producer
and explorer in the province. Junex also holds a 20% interest in the stock of
Petrolia (PEA : TSX Venture).

The TSX Venture Exchange has neither approved nor disapproved the
information contained herein
%SEDAR: 00015378EF C1352

Contact Information

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

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