Junex inc.

Junex inc.

October 05, 2005 09:29 ET

Junex signs a Letter of Intent with Team Energy, LLC for exploration investments of US$24 million

QUEBEC, Oct. 5 - Junex (JNX : TSXV) is proud to announce the
signing of a Letter of Intent with Team Energy, LLC ("Team"), a company based
in the United States. Under the Letter of Intent, Team, alone or with
affiliated companies, plans to invest US$24 million over the next three years
in the properties held under permit by Junex in the Province of Quebec in
exchange for a participation right in each property to be negotiated on a
play-by-play basis. Junex will have the right to maintain a 60% interest in
certain properties by investing a portion of the respective funds required to
carry out the planned exploration for oil and gas.

Junex and Team have initiated negotiations to establish an Exploration
and Production Agreement ("EPA") in order to clearly define the investments
and interests both parties will commit to in respect to each project
undertaken. Junex and Team have agreed to a 90-day period in order to complete
the due diligence on Junex's properties and for the signing of the EPA. Junex
has agreed not to engage in negotiations with any other potential partners for
its properties during this 90-day period. All activities related to the
exploration, production and sale of natural brine are excluded from the
discussions with Team; following any potential agreement with Team Junex plans
to retain a 100% ownership in its natural brine activities.

"We have worked hard and invested millions of dollars over the past
4 years to produce modern geological and geophysical studies in order to
develop a promising exploration model for the Quebec sedimentary basin. The
most recent results we obtained from Galt and Bécancour, in addition to the
seismic results in the Chaleurs Bay, have enabled us to identify a geological
structure with sufficient elements that have caused increasing interest from
other participants in the oil and gas industry. We are pleased to be working
with Team, which is bringing together a group of seasoned experts in the
industry" stated Mr. Jean-Yves Lavoie, P. Eng., President of Junex.

Mr. Dennis R. Swager, Team's President, stated that "Team Energy is
excited about its relationship with Junex and the opportunity to jointly
develop a strategy for the exploration and development of hydrocarbons in a
portion of the Province of Quebec."

About Team Energy

Team is a bonded operator and currently is active in the Illinois and
other U.S. onshore basins. By integrating the disciplines of geology,
engineering and production management, Team has realized significant growth in
its history. The company strives to be a growth-oriented company focused on
financial success for its partners, clients, employees and shareholders. Team
Energy, LLC looks forward to sustained growth as energy producers and
consultants through quality personnel, management, partners and associates by
executing integrated development and exploration projects.

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 19% interest in the stock of
Petrolia (PEA : TSX Venture).

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

Contact Information

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

    Mr. Dennis Swager, President, Team Energy, LLC,
    (618) 943-1010;

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