QUEBEC, QUEBEC--(Marketwired - Nov. 29, 2016) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce that its Galt No. 4 Horizontal well has produced a total of 17,798 barrels of light, sweet crude oil from long-term oil production testing since the well was drilled. This is by far the most significant recovery of oil ever recorded from a single well in Quebec's history.
The total period allotted for production testing per Quebec government regulations was 240 days, of which 221 days of actual production occurred. The remaining 19 days of the 240-day period were spent performing various other operations in the well, including but not limited to the retrieval and replacement of downhole pressure gauges in the well and testing from specific intervals in the horizontal leg. The extended production test ended on November 28, 2016.
The maximum production rate measured in the well in 2015 was 396 barrels of oil per day ("BOPD") over a 24 hour period. The average production rate observed as at 30 days of production was 240 BOPD. During the entire test, Junex controlled and limited the production rate such as to harvest the maximum reservoir performance information possible. Because well testing operations are by nature temporary, the configuration of the equipment used is not as optimal or as efficient as that which the Company would use when well production will take place.
"Because of the positive results on our Galt Oil Property, this has been the principal focus of our company since 2015. The milestone Galt No. 4 Horizontal well continues to provide excellent results, particularly considering that no reservoir stimulation of any kind, neither hydraulic fracture stimulation nor any other, was performed in the well. The results from the production performance of the well, detailed 3D seismic data acquired in 2015 and other data strongly motivated us to apply for a Production Lease last September. We intend to start oil production at Galt once this application is approved and the Production Lease is issued", said Mr. Peter Dorrins, Junex's President & CEO.
The Galt No. 4 Horizontal discovery well was drilled in the autumn of 2014 to a total measured depth of 2,400 meters, of which 1,503 meters was drilled within the oil reservoir. Numerous significant oil shows associated with fracture porosity recorded during drilling and results from downhole well logging clearly indicated that the oil reservoir is intensely fractured and that the Galt No. 4 Horizontal well intersected the near-vertical fractures at an optimum angle of approximately 90 degrees, as forecast in the original well design. No reservoir stimulation of any kind was performed in the well. The well was subsequently tested in 2015 and in 2016 that clearly demonstrated the productivity of this well.
Receipt of a Drilling Permit for the Junex Galt No. 6 Horizontal Well
Junex also announces that it has received a drilling permit for the Junex Galt No. 6 Horizontal well from the Quebec Ministry of Energy and Natural Resources.
Mr. Dorrins added, "All of the results obtained so far at Galt also influenced the selection of optimal future drilling locations. In this light, we applied for and received a drilling permit and all other government approvals for our next well, Junex Galt No. 6 Horizontal. Since that time, we proceeded with construction of the drilling pad for the Galt No. 6 Horizontal well and this is currently nearing completion. This pad is designed for the drilling of up to 8 horizontal wells if justified by future drilling results."
With respect to the Galt No. 5 Horizontal well drilled in 2015, the well remains shut-in for pressure build-up. Once the shut-in period is ended, the downhole pressure gauges will be retrieved and the data will be analyzed provide important details as to the reservoir characteristics in this well, including the potential productivity of this horizontal wellbore. Once this information has been gleaned, the next steps for the Galt No. 5 well will be determined.
Junex holds a 70% interest in the Galt Oil Property and 100% interest in the adjacent acreage. These landholdings are situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.
Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land in the Appalachian basin in the Province of Quebec, including the Galt Oil Property on the Gaspé Peninsula in eastern Quebec, landholdings on Anticosti Island in the Gulf of St. Lawrence and landholdings in the St. Lawrence Lowlands between Montreal and Quebec City. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, the company operates a drilling services division.
Forward-Looking Statements and Disclaimer
Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to Junex at the time and involve known and unknown risks, uncertainties and other factors that may cause Junex's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Junex's business and activities appears under the heading "Risks and Uncertainties" on pages 7 to 10 of Junex's 2014 annual management's discussion and analysis, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Junex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Junex. Junex disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.