Junex inc.

Junex inc.

June 28, 2005 23:59 ET

Oil production in Gaspésie : Junex successfully completes the stimulation work at the Galt No. 3 well

MONTREAL, June 28 - Junex (JNX: TSX VENTURE) and its partner Gestion Bernard Lemaire are proud to announce that Schlumberger Canada Inc. has successfully completed the massive stimulation work on the Galt No. 3 well, located approximately 20 kilometres west of Gaspé. "The preliminary results lead us to believe that the Galt No. 3 well could become the first oil well to be put into commercial production in the history of Quebec" has indicated Mr. Jean-Yves Lavoie, P. Eng., President of Junex, who was present to supervise the work.

During the next few days, Junex will proceed with the installation of a bottom-hole pump equipped with a pressure gauge and will perform a prolonged production test at the Galt No. 3 well. The results of this test should be
known in a few weeks and will allow us to determine the production capacity of the well.

Performed in an intermittent basis between June 24 and 27, the self cleaning of the well has permitted the production of 232 barrels of crude oil of an excellent quality (48 degrees API) in addition to recuperating all 434 barrels of fluids injected in order to stimulate the formation. Gases associated with the oil have also been produced but their quantity has not been measured. Once the cleaning of the formation was completed, the well
continued to generate hydrocarbons all day long without any presence of water or other fluid.

"This is the first time a massive stimulation work has been performed on a well located in Gaspésie and the results of this work have permitted a significant improvement in the oil productivity of the formation. All the
preliminary data collected at this time seem to confirm the validity of our geological concept, notably the presence of HTD in this well. The results are very promising and they allow us to believe in a commercial oil production at the same time that they demonstrated the fact that the Gaspesian oil system is working" concluded Mr. Lavoie, P. Eng., President of Junex.

The fracturation work have been targeted on the interest zone, located at approximately 2,230 metres deep where an important lost in circulation had been observed during the drilling.

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 these production activities that are located in the Bécancour area (brine) and in the 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, of which 3 million are in the gaspesian peninsula (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 Quebec.

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Contact Information

  • JUNEX :
    Mr. Jean-Yves Lavoie,
    President and Chief of Operations,
    (418) 654-9661, ext. 232

    Mr. Dave Pépin,
    Vice President, Corporate Affairs,
    (418) 654-9661, ext. 225