QUEBEC CITY, QUEBEC--(Marketwired - March 16, 2015) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce that it has completed its most recent phase of oil production testing in its Galt No. 4 Horizontal well. This latest phase started on February 26th and ended on March 11th. The Company deliberately set the production rate during this latest phase according to its plan such that an average rate of 206 barrels of oil per day ("BOPD") was maintained during the final ten days of this period.
Since the Galt No. 4 Horizontal well finished drilling, Junex has recovered a total volume of 7,200 barrels of light, sweet crude oil from combined production testing operations and well cleanup/swabbing operations.
According to our plan announced on February 2nd, the well is now shut-in such that the pressure build-up of the Forillon reservoir will be measured over the period of spring break-up. After this, the pressure gauges will be retrieved then the recorded data will be analyzed and interpreted by Junex's engineers and independent industry specialists. This pressure build-up data will provide invaluable information as to the reservoir characteristics of the Forillon reservoir in the Galt No. 4 Horizontal Well.
"We are very pleased that our milestone well continues to deliver strong production rates. This significant oil discovery is not an end result in itself but it is the beginning of the next phase of operations geared to further proving-up the Galt oil accumulation. We now plan to move ahead with our delineation program that includes the drilling of the Galt No. 5 Horizontal well, followed by completion of a detailed 3D seismic program, then the drilling of the Galt No. 6 & No. 7 Horizontal wells. We expect to spud the No. 5 Horizontal well by the beginning of the summer" said Mr. Peter Dorrins, Junex's President & Chief Executive Officer.
More than 2,370 barrels of light, sweet crude oil was produced during this latest phase of production testing of our oil discovery in the first horizontal oil exploration well ever drilled by industry in Quebec. No hydraulic fracturing operation of this conventional reservoir was performed in this well.
This discovery well was horizontally drilled from the existing Galt No. 4 Vertical wellbore 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 indicate that the oil reservoir is intensely fractured and that the Galt No. 4 Horizontal well intersected the near-vertical natural fractures at an optimum angle of approximately 90 degrees, as forecast in the original well design.
Junex holds a 70% interest in the Galt Oil Property, with Junex's partner, Mr. Bernard Lemaire, holding the remaining 30% interest. Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, has previously established their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources for the Forillon and Indian Point formations on the Galt Oil Property at 330 million barrels that includes Discovered Contingent OIIP volumes of 36 million barrels and Undiscovered Prospective OIIP volumes of 294 million barrels (see press release from March 27, 2013 for details of the NSAI report).
Junex also holds 100% interest in the adjacent acreage. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential. These landholdings are situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.
About Junex
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. 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 8 to 11 of Junex's 2013 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.