Junex inc.
TSX VENTURE : JNX

Junex inc.

July 31, 2014 08:30 ET

Junex Tests 180 Barrels of Oil per Day at its Galt No. 3 Well

QUEBEC CITY, QUEBEC--(Marketwired - July 31, 2014) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce that it has recovered 180 barrels of oil over a 24-hour period (or an "initial rate" of 180 barrels of oil per day) from a production test at its Galt No. 3 well. This well is on Junex's Galt Oil Property that is situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.

Mr. Peter Dorrins, Junex's President & Chief Executive Officer, remarked: "The Galt No. 3 vertical well was tested to harvest more information about the Forillon reservoir as part of finalizing the test design for the upcoming Junex Galt No. 4 Horizontal well. While not being a stabilized rate that would typically be much lower, we believe that this initial production rate in our Galt No. 3 well, which has been shut-in since 2011, nonetheless provides an indication as to the potential of the naturally-fractured Forillon reservoir on our Galt Oil Property."

Mr. Dorrins continued: "It is of note that the Galt No. 4 Horizontal well is designed to intersect a larger number of open, near-vertical fractures than the number of fractures encountered in the Galt No. 3 vertical well. Geological data indicates that the oil is produced from the natural fractures and we are hopeful that an increased number of open fractures, if encountered during drilling, could translate into a higher production rate in the Galt No. 4 Horizontal well. We foresee starting drilling operations at this location in the coming weeks."

The Junex Galt No. 4 Horizontal well, the first in a series of horizontal wells planned for the next phase of the project, will be drilled from the existing Junex Galt No. 4 vertical wellbore towards the Galt No. 3 well in the Forillon Formation.

Originally drilled in 2003, the Galt No. 3 vertical well is located on the same structure as and approximately 2.5 kilometers from the Junex Galt No. 4 vertical well. The Junex Galt No. 4 vertical well, drilled in 2012, confirmed the presence of a 997 meter-thick oil column in the combined Forillon and Indian Point formations (see September 25, 2012 press release), the impact of which was a 27% increase in the total Oil Initially-in-Place ("OIIP") resource volumes for the Galt Oil Property (see March 27, 2013 press release).

Junex holds 70% interest in the 16,645 acre-sized Galt Oil Property and 100% interest in the 36,816 acre-sized permit adjacent to the Galt Oil Property. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential.

Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, has previously established their Best Estimate of the total OIIP resources for the Forillon and Indian Point formations on Junex's 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