Junex inc.

Junex inc.

December 11, 2006 08:21 ET

Oil production on the Gaspé peninsula: Junex produced 1,336 barrels of oil from the Galt No.3 well

MONTREAL, Dec. 11 - Junex (JNX : TSXV) announces that the
Galt No.3 well produced 1,336 barrels of light oil that was sold to the
Ultramar refinery in Lévis for an average price of $76.20 per barrel. The Galt
No.3 well was put back on production last July after having been shut-in for
about 6 months over the past winter.

In addition, the Galt project partners have completed the cementing of
casing in the Junex-Lemaire Baillargeon No.1 well that attained a total depth
of 1,500 meters. As indicated in a previous press release, natural gas and
crude oil shows were encountered during the drilling of the well and
subsequent drillstem tests identified two zones with oil and gas shows at
depths of 1,345 and 1,445 meters. For technical reasons, the well was not
deepened beyond a depth of 1,500 meters and the intervals with shows will be
tested in the coming weeks to determine their productive capacity. The
Baillargeon No.1 well is located about 5 kilometers from the Galt No.1 and
Galt No.3 wells.

Junex and Gestion Bernard Lemaire are equal partners in the Galt
exploration permit that covers a total area of 16,803 acres. In the past few
years, approximately 50 line-kilometers of seismic data have been acquired and
three deep wells have been drilled in this area. The Galt No.1 (natural gas)
and Galt No. 3 (natural gas and oil) wells both produce small quantities of
hydrocarbons. As always, these wells have permitted recognition of a
hydrocarbon-saturated interval of some 2,000 meters in thickness, endowing the
Galt project with a considerable petroleum potential.

Production operations at the Galt No.3 well will be shut-down for the
winter and production should resume next spring.

About Junex

Junex holds exploration rights in more than 4 million acres of land in
the Appalachian basin in the province of Québec. Recent major discoveries in
the United States and Eastern Canada have stimulated exploration in Québec,
which is located in a geological setting favourable for oil and gas discovery.
Junex's strategy is to reduce exploration risks by entering into partnerships
with other exploration companies. Parallel to its exploration efforts, Junex's
goal is to achieve positive cash flows from its natural brine and drilling
services operations. Junex also holds approximately a 12% interest in Petrolia
(PEA : TSXV) and an 5.6% interest in Gastem (GMR : TSXV).

Contact Information

  • JUNEX:
    Jean-Yves Lavoie
    President and Chief of Operations
    (418) 654-9661

    Dave Pépin
    Vice-President, Corporate Affairs
    (418) 654-9661