Junex inc.

Junex inc.

February 24, 2009 08:04 ET

Junex's Partner Announces Preliminary Results From Utica Shale Operations

QUEBEC CITY, QUEBEC--(Marketwire - Feb. 24, 2009) - Junex's (TSX VENTURE:JNX) joint venture partner issued yesterday a press release that, in part, discussed its St. Lawrence Lowlands operations in the Utica Shale Gas Play. The press release, stated:

"Forest drilled and completed the first three horizontal Utica Shale wells in Quebec's St. Lawrence Lowlands, which were successfully cased and fracture stimulated in four stages with rates ranging from 100 - 800 Mcf/d. Frac load flowback was incomplete due to the lack of coiled tubing units in the area. Forest expects to continue to test its wells after the winter season is over. Although sustained rates were not as high as anticipated, the tests have allowed Forest to identify the section of the shale it intends to target in future test wells. Each of the wells were tested in different sections of the Utica Shale with an objective of gathering data on productivity to allow optimization of future completions. Furthermore, Forest proved the ability to successfully drill the wells horizontally and pump multi-stage slickwater frac jobs without major operational issues.".

"We are quite excited that our partner is perseverant in its efforts and remains committed to the Utica Shale Gas project. The three wells drilled in 2008 are the first horizontal wells to be drilled and fracture stimulated in the Utica Shale in Quebec. Considering that the Lowlands shale gas play is at its earliest stage of development, we fully expect to learn and build upon the results from these few first wells to develop the best drilling and completion recipes for the Utica Shale" said Junex's president, Mr. Jean-Yves Lavoie, P. Eng. "Furthermore, the results of the Champlain #1H horizontal well, coupled with the results of Junex's St-Augustin-de-Desmaures #1 well drilled near Quebec City last year, demonstrate the shale gas potential of Junex's 100%-held north shore acreage along the pipeline corridor between the two areas."

During 2008, Junex participated in the Champlain #1H horizontal well that was drilled on Junex's Becancour/Champlain acreage. This well reached its total depth in the Ordovician Utica Shale Formation with the bottomhole coordinates of the horizontal leg being approximately 900 metres from the surface location of the wellbore.

During 2009 and elsewhere in the Utica Shale Gas play in the St. Lawrence Lowlands, Junex plans to drill two wells on the neighbouring Nicolet land block targeting the Utica Shale. Also, after receipt of the final laboratory analysis from Utica cores taken in the Junex St-Augustin-de-Desmaures well drilled near Quebec City, a fracture stimulation program of the well is planned for later this year. As at year-end 2008, Junex had approximately $27 million in its treasury with no debt. As such, the Company has the financial capacity to undertake its Lowlands program.

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. The company is in the heart of the Utica Shale gas discovery located in the Ste Lawrence Lowlands. As of December 31 2008, Junex has a working capital of 28 million dollars. Junex also owns approximately 7.9% of the issued and outstanding shares of Petrolia (TSX VENTURE:PEA) and 1.0% of the issued and outstanding shares of Gastem (TSX VENTURE:GMR). In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations.

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