Junex inc.
TSX VENTURE : JNX

Junex inc.
Petrolia Inc.
TSX VENTURE : PEA

Petrolia Inc.
Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

July 08, 2008 09:14 ET

Petrolia, Junex and Gastem Announce the Start of Operations at Haldimand

QUEBEC CITY, QUEBEC--(Marketwire - July 8, 2008) - Petrolia (TSX VENTURE:PEA), Junex (TSX VENTURE:JNX) and Gastem (TSX VENTURE:GMR) are pleased to announce the resumption of operations at the Haldimand oil discovery. The objective of these operations is to delineate the extent of productive zones identified in the Petrolia Haldimand No.1 well. Estimated to cost approximately $5 million, these will consist of three distinct phases: performing analyses and tests on the Petrolia Haldimand No. 1 well, acquisition of 3D seismic data, and, finally, the drilling of a second well targeting the productive zones identified in the previous well. The technical committee, composed of representatives from each company, collaborated in developing this program by pooling the three companies' independent studies. Junex, as operator, will execute the operations for the Petrolia-Junex-Gastem partnership.

In the upcoming weeks, certain operations will be performed on the Petrolia Haldimand No.1 well. These include the recovery of a pressure gauge installed in the well in 2006 and obtaining oil samples under reservoir conditions. After having analyzed the oil samples as well as the pressure data, a long-duration production test will be undertaken to confirm the productive capacity of the Petrolia Haldimand No.1 well. In addition to these field operations, detailed geological analysis of the formations encountered in the well will be performed. This information will be useful in determining the reservoir characteristics.

In parallel to this, work is already in progress to complete a detailed 3D (or high-density 2D) seismic survey by the end of September. This survey, covering an area of 13 km2 around the discovery well, is designed to image the depth and structure of the different geological layers in the subsurface. The decision to be made as to the location of the second well will be based upon this data.

Drilling operations at the second well should start in the autumn, conditional upon the availability of drilling equipment and receipt of required permits. This well's evaluation and testing program should permit validation of the extension of the productive zones identified in the first well, to better characterize the reservoir and to improve the interpretation of the first well's results.

About Petrolia

Petrolia is a junior oil and gas exploration company that holds exploration rights on a total of 15,000 km2 (3.7 millions acres), an area which represents 21 % of the Quebec territory under licence. Mainly located in the Gaspe Peninsula and on Anticosti Island, these licences are considered as the most prospective lands, representing 70% of the Quebec petroleum onshore potential, Petrolia will now have a free hand to develop that potential with new partners and it intends to intensify its exploration program in the upcoming years. The company has 40.7 M outstanding shares and it owns 2.2% of the issued and outstanding shares of Gastem Inc. (TSXV : GMR). Furthermore, the company holds 13 million dollars in cash.

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. Several recent discoveries in the United States and Eastern Canada have stimulated exploration in Quebec, whose sedimentary basin is located in a favourable geological setting for oil and gas discovery. Junex's strategy consists in entering into partnerships with other exploration companies in order to reduce exploration risks. In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations. Junex also owns approximately 7.9% of the issued and outstanding shares of Petrolia (TSX VENTURE:PEA) and 1.3% of the issued and outstanding shares of Gastem (TSX VENTURE:GMR).

About Gastem

Gastem is a gas exploration and development company which holds exploration rights on more than 1 million acres of land in Quebec, an earn-in interest in the Joly Project with Intragaz and also various projects in the North-East United States. The company has a participation in 24 gas wells currently in production in the Amber Bank project, West Virginia. Gastem is mainly active and is a leader in the exploration and development project of the Utica Shales in the St-Lawrence Lowlands and the Appalachians in the State of New-York. In the coming weeks, the company expects to undertake important drilling projects in the State of New-York while leading many exploration projects in Quebec.

Forward looking statements

This news release contains certain forward-looking statements. These statements relate to future events or future economic performance of Junex, Petrolia and Gastem, 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 Petrolia and Gastem. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Junex, Petrolia and Gastem 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

  • For information about Petrolia:
    Ms. Isabelle Proulx
    Vice President
    Quebec: 418-657-1966
    Rimouski: 418-724-0112
    info@petroliagaz.com
    or
    Mr. Andre Proulx
    President
    418-724-0112
    president@petroliagaz.com
    www.petroliagaz.com
    or
    For information about Junex:
    Mr. Jean-Yves Lavoie
    President
    418-654-9661
    or
    Mr. Dave Pepin
    Vice President - Corporate Affairs
    418-654-9661
    or
    For information about Gastem:
    Mr. Raymond Savoie
    President
    514-875-9034
    or
    Mr. David Vincent
    Corporate Affairs
    514-875-9034