Junex (TSX: V.JNX, Stock Forum) had reason to celebrate today when the company announced that it had achieved a steady production rate of 161 barrels of oil per day (“BOPD”) during the last six days of a 14-day production test at its Galt No. 4 Horizontal Well located approximately 20 kilometres west of the town of Gaspé in eastern Quebec.
According to the news release, the production rate of 161 BOPD was limited due to the configuration of the surface oilfield pumping equipment.
The production test produced a total of 2,017 barrels of light, sweet crude oil at what is known as the first horizontal oil exploration well ever drilled by industry in the province of Quebec.
Company President and CEO, Peter Dorrins, commented on the milestone, “To the best of our knowledge, this production rate of 161 barrels of oil per day is the highest oil production rate seen so far in Quebec and, based on our calculations, translates into a commercial oil production rate even at today's oil price.”
He went on to explain, “Because this production rate is currently constrained by surface equipment configuration limitations, we recognize that our well is likely capable of being produced at a higher production rate though it is premature to affirm what this rate could be. The completion of the next phase of well shut-in with measurement of the pressure build-up and possible future production testing should clarify this.”
He then concluded, “Subject to financing, our plan moving forwards is to further delineate and prove-up the Galt oil accumulation by completing the next phase of our program that includes the drilling of the Galt No. 5 Horizontal well, followed by completion of a 3D seismic program, then the drilling of the Galt No. 6 Horizontal and Galt No. 7 Horizontal wells.”
The company controls a 70% interest in the Galt Oil Property with its partner, Bernard Lemaire, retaining the remaining 30% interest. Junex holds 100% interest in an adjacent acreage that has yet to be independently evaluated for resource potential.
Junex was in the news recently when the Quebec-based company announced an update on its operations at Galt No. 4 Horizontal well back in the middle of December.
Shares climbed 12.00% on the news to $0.56 per share.
Currently there are 66.2m outstanding shares with a market cap of $37.1 million.