Junex inc.

Junex inc.

September 29, 2005 09:02 ET

Oil production in Gaspesie : Junex announces Galt No. 3 preliminary results

QUEBEC CITY, Sept. 29 - Junex (JNX: TSXV) and its partner
Gestion Bernard Lemaire have completed the installation of a bottom-hole pump
at a depth of 2,307 meters in order to perform a production test at the
Galt No. 3 well.

The preliminary results of this production test indicate that the well,
in the last 10-day period, has produced a total of 413 barrels of light oil
(48 degrees API). Within the last 5 days, the well has produced an average
volume varying between 10 to 20 barrels of oil per day. In parallel to this
oil production, the Galt No. 3 well has also produced an average of
40 mcf/ day of natural gas.

"We will pursue this production test for the coming weeks in order to
evaluate the stabilized production capacity of the well. The preliminary
results indicate that the production level should range between 10 to
20 barrels per day for oil and between 30 to 40 mcf per day for natural gas.
Although these production rates remain modest, they represent an important
development for the oil and gas exploration in Gaspesie since they confirm
that the rocks of the region are appropriate for oil production. If the well
maintains a stabilized production between 10 to 20 barrels, the partners
expect to produce the oil in order to collect the revenues associated to the
production" concluded Mr. Lavoie, P. Eng., President of Junex.

In the last quarter, the Galt No. 3 well allowed the partners of the
project to sell a total of 680 barrels of oil to the Ultramar refinery located
in St-Romuald. The oil has been sold at a price of $60 US per barrel.

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

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

Contact Information

  • 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