|By Marketwire .||
|September 25, 2012 08:10 AM EDT|
QUEBEC CITY, QUEBEC -- (Marketwire) -- 09/25/12 -- Junex (TSX VENTURE:JNX) is pleased to announce that it has completed drilling operations at its Junex Galt #4 exploration well situated approximately 20 kilometers from the town of Gaspe in eastern Quebec. This well, which attained a total depth of 2,000 meters, was drilled by Junex's drilling division. Numerous oil shows encountered during the drilling of the well and the subsequent recovery of oil in drillstem tests confirm the presence of a very thick oil column that extends from 760 metres to 1,757 meters in depth in the well.
Ten drillstem tests were conducted of which six recovered varying quantities of oil and two recovered oil cut drilling mud; no formation water was recovered in any of the drillstem tests. A total of 29 sidewall cores were also recovered and these will be analyzed over the next few weeks.
"Having been drilled approximately 2.5 kilometres west of the Galt No. 1, 2 and 3 wells, this well's results confirm the extension of the Galt structure, our geological model and the presence of hydrothermal dolomite proximal to a significant strike-slip fault. Notably, the top of the Forillon Formation is about 400 meters higher than at the Galt No. 3 well. The well has been temporarily suspended in view of drilling a future horizontal leg into the hydrothermal breccia encountered in the Forillon Formation," said Mr. Jean-Yves Lavoie, P. Eng., CEO of Junex.
The petroleum potential of the Forillon Formation on Junex's Galt Field property was previously evaluated for Junex by Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas. In its report, NSAI placed their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources at 260.2 million barrels for the Forillon Formation on Junex's Galt Field property. This 260.2 million barrel figure includes Discovered Contingent OIIP volumes of 26.3 million barrels and Undiscovered Prospective OOIP volumes of 233.9 million barrels.
About the NSAI Report
Details about the NSAI Report were previously announced by Junex in a press release on October 24, 2011 and it is recommended that the reader consult this press release for further information. The resource estimates in the report must be treated as scoping level estimates and used with caution.
Discovered resources oil-initially-in-place (OIIP) volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in known accumulations prior to production.
Contingent resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations but for which the applied project or projects are not yet considered mature enough for commercial development because of one or more contingencies.The contingent resources estimated in the NSAI Report are contingent upon (1) the application of modern drilling and completion technology to establish significantly higher wellbore productivity (2) demonstration of the economic viability of project development, and (3) activity prior to expiration of the leases.
Undiscovered resources OIIP volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in accumulations yet to be discovered.
Prospective resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Unrisked prospective resources are estimated ranges of recoverable oil volumes assuming a petroleum discovery is made and are based on estimated ranges of undiscovered in-place volumes. If discovered, there is no certainty that the resources will be commercially viable or be able to produce any portion of the prospective resources.
The resources evaluated in NSAI's Report were determined from a range of possible values for multiple parameters. These parameters were limited to the critical driving factors for both statistical and practical reasons. The range and number of parameters rely on the available direct and analog data from similar reservoirs in a more mature development stage. It will be necessary to revise these estimates as additional data become available. Also, estimates of resources may increase or decrease as a result of future operations.
Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land located in the Appalachian basin in the Province of Quebec. The company is in the heart of the Utica Shale gas discovery located in the St. Lawrence Lowlands and holds a significant land-package on the Anticosti Island where an independent report has provided their Best Estimate of the undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on all five of Junex's permits on Anticosti Island at 12.2 billion barrels. As of September 30, 2011, Junex has a working capital of more than 17.7 million dollars. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations.
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 8 to 11 of Junex's 2010 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 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.
Mr. Jean-Yves Lavoie
Chief executive officer
Mr. Dave Pepin
Vice President - Corporate Affairs