Junex Inc. (TSX:V.JNX, Stock Forum)said that it has received all required government approvals to acquire new seismic data on Anticosti Island and that it has started line-cutting operations for this seismic program.
In terms of petroleum potential, Junex's acreage was previously evaluated by Netherland, Sewell & Associates, Inc.,a firm of worldwide petroleum consultants based in Texas. In its report, NSAI placed their best estimate of the undiscovered shale oil initially-in-place volume for the Macasty Shale on Junex's acreage at 12.2 billion barrels.
According to a press release, this large, 250 line-kilometre 2D seismic program is being conducted to select future drilling locations that will aid in evaluating the oil potential of the Macasty Shale and deeper geologic horizons on Junex's solely-held, 233,275 acre-sized block of exploration permits.
This seismic program, part of a multi-phase exploration program targeting the Macasty and deeper targets on Junex's acreage, is a prerequisite to selecting well locations for future drilling.
These subsequent drilling phases are envisioned to include an initial phase of multiple vertical wells targeting the Macasty and deeper targets to confirm their potential. Another phase including horizontal drilling and completion may follow.
The Macasty is the stratigraphic equivalent of the Utica Shale in the St. Lawrence Lowlands and the oil-rich Utica/Point Pleasant Shale in Ohio.
Junex's acreage is dominantly situated in the Deep Macasty Fairway, where the company's mapping interprets that the Macasty averages approximately 80 metres in thickness, which is approximately two times the thickness than that encountered in wells previously drilled by other operators outside of the Deep Macasty Fairway.
Based on its direct experience with the Utica Shale in the Saint Lawrence Lowlands at varying formation depths, Junex considers that the greater formation depth of the Macasty on its acreage in the Deep Macasty Fairway should translate into greater formation pressure that could yield an increased production potential in the event that the exploration program continues to yield positive results.
Junex’s objective is to explore Quebec’s oil and gas potential, while generating economic benefits and local employment for the community.
On Monday, Junex was trading for $0.73 a share. The company has a market cap of $49 million, based on $67.2 million shares outstanding. The 52-week high and low was $1.10 and $0.52 respectively.