Cuda Oil and Gas Inc JNEXF

News on Paspébiac drilling

[Welland]

Junex Announces the End of the Paspebiac #1 Well and the Beginning of Production Tests 08:00 EDT Tuesday, October 16, 2007 QUEBEC, QUEBEC--(Marketwire - Oct. 16, 2007) - NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Junex (TSX VENTURE:JNX) announces that the drilling of the Paspebiac #1 well reached a total depth of 1,800 meters. The well has encountered natural gas shows from 1,395 meters continuing all the way down to the final depth of the well. Moreover, oil indications have been observed in the Silurian sandstones from 1,630 meters. A crew from the company Baker Oil Tools has been mobilised in order to perform some DST's which will provide us with a better evaluation of the production capacity of the different porosity zones observed during the drilling and also recognised on the logs. These tests should be performed in the coming days. Despite the presence of natural gas and oil shows observed on the cuttings, Junex has decided to stop the drilling at 1,800 meters because of the high deviation rate of the well and the technical problems which could have been caused by deepening the well. "Considering the hydrocarbon indications met, we would have preferred to deepen the well down to at least 2,000 meters in order to see if an oil window was present but, despite these technical difficulties, we are very satisfied with the geological results of the well. We can already say that the presence of gas on a 400-meter thick layer added to a porosity visually observed and to the type of sediments encountered during the drilling are as many elements which seem to prove that the Baie-des-Chaleurs basin is a great prospect for the oil and gas. It now opens a new door for a more aggressive exploration program of a new sedimentary basin. On the other hand, the production test of the coming days will enable us to better evaluate the production capacity of the Paspebiac #1 well" has explained Mr. Jean-Yves Lavoie, P.Eng., President of Junex. About Junex Junex holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the province of Quebec. Recent major discoveries in the United States and Eastern Canada have stimulated exploration in Quebec, which is located in a favourable geological setting for oil and gas discovery. Junex's strategy is to reduce exploration risks by entering into partnerships with other exploration companies. In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drillings services operations. FOR FURTHER INFORMATION PLEASE CONTACT: Junex Mr. Jean-Yves Lavoie President 418-654-9661 or Junex Mr. Dave Pepin Corporate Affairs 418-654-9661