Junex inc.
TSX VENTURE : JNX

Junex inc.

January 18, 2012 12:28 ET

Junex Launches New Oil Activities in the United States

QUEBEC CITY, QUEBEC--(Marketwire - Jan. 18, 2012) - Junex (TSX VENTURE:JNX) announces that it is expanding its operations by launching new oil and gas exploration activities in the United States. This first project is situated in the prolific Permian Basin in West Texas.

Junex has entered into an agreement with a private, Texas-based, oil and gas exploration & production company in a multi-well program targeting lower-risk, multi-zone, oil and gas-bearing reservoirs in the Permian Basin in Schleicher County, West Texas. Junex will earn a 25% leasehold working interest in approximately 2,300 acres through paying its 25% share of the acquisition costs of this acreage and by participating in the drilling of two initial wells at a level of 33% of the drilling costs "to casing point". Any subsequent completion expenditures in the first two wells or drilling and completion expenditures in any other new wells will be at a 25% participating interest level net to Junex.

"Because of the prospectivity of our Quebec acreage, in particular our Anticosti Macasty Shale Oil assets and our Galt Oil assets, Quebec remains an important focus for our company. In this light, we intend to start drilling on our Galt Oil project during the first half of this year. However, the Quebec government-ordained slow-down of operations on our prospective Utica Shale assets has stimulated us to expand our operations elsewhere in North America to further diversify our oil and gas portfolio as a means of adding value for our shareholders. This Permian Basin opportunity represents part of the fruition of an extensive evaluation of a number of opportunities performed by our technical staff over the past three quarters. We are continuing our ongoing efforts of identifying new opportunities in North America that meet our criteria for economically-viable, risk-balanced, oil projects and liquids-rich gas projects," said Mr. Jean-Yves Lavoie, P. Eng., CEO of Junex.

Similarly, in order to further generate positive cash flows, Junex's Foragaz drilling division has started providing drilling services to third parties in Nova Scotia using its Foragaz No. 3 rig and it is actively pursuing drilling contracts there and elsewhere. An additional benefit to this drilling activity is the continued employment of Junex's Quebec-based drilling personnel over the short to medium term of the Quebec government-ordained slow-down of oil and gas activities.

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 an important 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. As of September 30, 2011, Junex has a working capital of more than 17.7 million dollars. 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
    418-654-9661

    Junex Inc.
    Mr. Dave Pepin
    Vice President - Corporate Affairs
    418-654-9661