Junex inc.

Junex inc.

July 16, 2008 08:10 ET

Junex Starts its Exploration Program in the Saint Lawrence Lowlands

QUEBEC CITY, QUEBEC--(Marketwire - July 16, 2008) - Junex (TSX VENTURE:JNX) has recently commenced its 2008-2009 exploration program that foresees the investment of about $10 million in the Saint Lawrence Lowlands over the next 18 months. The exploration operations undertaken by Junex are aimed at evaluating the natural gas potential of Shales in the Lorraine and Utica formations as well as the natural gas potential of the Trenton-Black River.

Included within this exploration effort are 2D seismic surveys totalling about 200 line-kilometers as well as geological and geophysical operations such as high-resolution aeromagnetic surveys, thermal maturation analyses and the coring of Shales. The goal of these operations is to evaluate the geological characteristics of the Lorraine and Utica Shales, notably on the Lyster property (108,360 acres) and the South Richelieu property (138,606 acres) where the Company is of the opinion that there exists good gas potential for the deeper Shale section. Similarly, the Company will be evaluating the gas potential of Shales at shallower depths on other of its properties located on the north shore of the Saint Lawrence River. All of these properties are held by Junex at 100% working interest. In addition to these operations, Junex foresees drilling between 5 to 7 wells on its Saint Lawrence Lowlands properties and drilling operations at two of these wells are currently underway.

Junex St-Antoine-sur-Richelieu #1 Well in the Contrecoeur Area

Junex is currently drilling the Junex St-Antoine-sur-Richelieu #1 well in the Contrecoeur area located about 55 kilometers from Montreal. This well is targeting a seismically-defined zone of collapse or sag at the Trenton-Black River level at an estimated depth of 770 meters. Moreover, this well will drill through the overlying Utica Formation Shales; the well logs as well as all the geological data collected by Junex from this section of this well will be provided to its partner, Forest Oil Corporation, who, after having analyzed this data, will decide whether or not it will exercise its option to perform additional operations totalling $4 million USD in order to earn a working interest of 60% in the Shale section above the Trenton-Black River on this 55,240 acre-sized property (see press release dated April 1st 2008). Upon Forest earning this working interest, Junex will then hold 40% working interest in the Shale section above the Trenton-Black River and 100% working interest in the Trenton-Black River and other geologic intervals on the property. The Junex St-Antoine-sur-Richelieu #1 well is currently drilling at a depth of 471 meters and the anticipated total depth of the well is 1,200 meters.

Junex St-Augustin-de-Desmaures #1 Well

Junex is also drilling the Junex St-Augustin-de-Desmaures #1 well that is situated about 20 kilometers from Quebec City. The prime objective of this well is to cut cores in the Lorraine and Utica Shales then to analyze these cores for specific geological characteristics. The well is currently drilling at a depth of 637 meters and Junex has already cut 4 different cores over parts of the interval between 342 and 514 meters. These cores have been sent to CBM Solutions for lab analysis such as thermal maturation analysis and analysis of mechanical properties of the Shales. The Company anticipates completion of these analyses over the next three to six month period. While the Company has completed the coring operations of the Shale section, it is continuing to drill to an anticipated total depth of 850 meters through the Trenton-Black River and possibly other formations to obtain more information about the geology in the region.

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the Province of Quebec. Several recent discoveries in the United States and Eastern Canada have stimulated exploration in Quebec, whose sedimentary basin is located in a favourable geological setting for oil and gas discovery. Junex's strategy consists in entering into partnerships with other exploration companies in order to reduce exploration risks. In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations. Junex also owns approximately 7.9% of the issued and outstanding shares of Petrolia (TSX VENTURE:PEA) and 1.1% of the issued and outstanding shares of Gastem (TSX VENTURE:GMR).

Forward looking statements

This news release contains certain forward-looking statements. These statements relate to future events or future economic performance of Junex and carry risks, uncertainties and other factors - both known and unknown - that may appreciably affect their respective results, economic performance or accomplishments when considered in light of the content or implications of statements made by Junex. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Junex do not intend and undertake no obligation, to update these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Junex inc.
    Mr. Jean-Yves Lavoie
    Junex inc.
    Mr. Dave Pepin
    Vice President - Corporate Affairs