Junex Inc.
TSX VENTURE : JNX

Junex Inc.

January 27, 2015 07:30 ET

Junex Production Tests Oil at 161 Barrels per Day in its Galt No. 4 Horizontal Well

QUEBEC CITY, QUEBEC--(Marketwired - Jan. 27, 2015) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is very pleased to announce that it recorded a steady production rate of 161 barrels of oil per day ("BOPD") during the final six days of its 14 day production test in its Galt No. 4 Horizontal well. This production rate of 161 BOPD was limited by the configuration of the surface oilfield pumping equipment at the well.

A total volume of 2,017 barrels of light, sweet crude oil was produced during this production test in the first horizontal oil exploration well ever drilled by industry in Quebec.

"To the best of our knowledge, this production rate of 161 barrels of oil per day is the highest oil production rate seen so far in Quebec and, based on our calculations, translates into a commercial oil production rate even at today's oil price. Because this production rate is currently constrained by surface equipment configuration limitations, we recognize that our well is likely capable of being produced at a higher production rate though it is premature to affirm what this rate could be. The completion of the next phase of well shut-in with measurement of the pressure build-up and possible future production testing should clarify this." stated Mr. Peter Dorrins, Junex's President & Chief Executive Officer.

During the first 2 days of the 14 day production test, the rate was deliberately limited at 76 BOPD to permit Junex's engineers to collect representative oil samples. Once this was achieved, the pump rate was set at the maximum rate permitted by the configuration of the surface pumping equipment that allowed the production of oil at the same time as recovering the remaining drilling fluid in the well. Once this recovery of drilling fluid was completed, the well produced oil at a rate of 161 BOPD during the final 6 days of the test.

Following this production test, the well was shut-in such that the pressure build-up of the Forillon reservoir will be measured over the next 12 weeks or so. After this, the pressure gauges will be retrieved then the recorded data will be analyzed and interpreted by Junex's engineers and independent industry specialists. This pressure build-up data will provide invaluable information as to the reservoir characteristics of the Forillon reservoir in the Galt No. 4 Horizontal Well, including principally the optimal production rate of the well.

Mr. Dorrins continued: "Subject to financing, our plan moving forwards is to further delineate and prove-up the Galt oil accumulation by completing the next phase of our program that includes the drilling of the Galt No. 5 Horizontal well, followed by completion of a 3D seismic program, then the drilling of the Galt No. 6 Horizontal and Galt No. 7 Horizontal wells."

This discovery well was horizontally drilled from the existing Galt No. 4 Vertical wellbore to a total measured depth of 2,400 meters, of which 1,503 meters was drilled within the oil reservoir. Numerous significant oil shows associated with fracture porosity recorded during drilling and results from downhole well logging clearly indicate that the oil reservoir is intensely fractured and that the Galt No. 4 Horizontal well intersected the near-vertical natural fractures at an optimum angle of approximately 90 degrees, as forecast in the original well design. Subsequent swabbing operations performed in December and this production test confirm the productive capacity of the Galt oil accumulation.

This oil discovery was accomplished by Junex's personnel, from project inception through to the scientific analysis and evaluation that allowed selection of the horizontal well location and the development of the drilling program by our team of scientists and engineers, then the successful drilling of this milestone well by our well-trained drilling personnel using our own drilling equipment, to the installation & operation of the oilfield pumping equipment and completion of the production test by our field personnel and engineers.

Junex holds a 70% interest in the Galt Oil Property, with Junex's partner, Mr. Bernard Lemaire, holding the remaining 30% interest. Junex holds 100% interest in the adjacent acreage. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential. These landholdings are situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.

Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, has previously established their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources for the Forillon and Indian Point formations on the Galt Oil Property at 330 million barrels that includes Discovered Contingent OIIP volumes of 36 million barrels and Undiscovered Prospective OIIP volumes of 294 million barrels (see press release from March 27, 2013 for details of the NSAI report).

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, the company operates a drilling services division.

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 2013 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 the 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. Peter Dorrins
    President & Chief Executive Officer
    418-654-9661

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