- Published: 27 November 2014
- Written by Editor
Junex Strikes Oil in its Galt No. 4 Horizontal Well
QUEBEC CITY, QUEBEC--( Nov 27, 2014) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is very pleased to announce an oil discovery in its Galt No. 4 Horizontal Well that it drilled using its wholly-owned Foragaz No. 4 drilling rig. Having finished drilling on November 20th, this is the first horizontal oil exploration well ever drilled by industry in Quebec. This well is situated approximately 20 kilometers west of the town of Gaspé in eastern Quebec.
"We are tremendously excited by this significant oil discovery as it moves us markedly closer to commercial oil production at Galt. As predicted, this horizontal well encountered a substantial interval of oil-charged, naturally-fractured reservoir rock. Based on these positive results, we have commenced operations of installing perforated production casing in the well, after which swabbing operations will be performed as the first part of oil testing operations. We expect delivery of a new oilfield pump in late December that will be installed in the well for further production testing and, ultimately, commercial oil production if the results from these production tests support this." stated Mr. Peter Dorrins, Junex's President & Chief Executive Officer.
This 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 were recorded during the drilling of the oil reservoir. Detailed downhole well logging, using specialized instruments, was performed after the drilling of the well and this clearly indicates that the Forillon oil reservoir is intensely fractured. This well has met our objective of intersecting the maximum number of near-vertical, natural fractures in the Forillon oil reservoir.
The well was drilled on-budget in a record time of 37 days (versus our forecast of 55 days) in an area renowned for its "tough" drilling. An average drilling rate of 7 meters per hour was achieved in the Forillon oil reservoir, which, following optimization of the drilling parameters, attained drilling rates in the 20 to 25 meters per hour range. This improvement in drilling rates is a testament as to the ongoing management and optimization performed by Junex's employees during the drilling of the well and this knowledge will be applied in the drilling of future wells on our Galt Oil Property.
Junex's Foragaz No. 4 drilling rig will soon be moved to the Junex Galt No. 5 Horizontal wellsite in preparation for drilling in 2015.
Mr. Dorrins continued: "We are particularly proud of this entire operation because it is a success and it is also a unique "Made in Quebec" story accomplished by Quebeckers working for our company, from project inception through to the scientific analysis and evaluation that allowed selection of the horizontal well location and the development of the drilling program by our team of scientists and engineers, then ultimately to the successful drilling of this milestone well by our well-trained drilling personnel using our own drilling equipment."
As previously announced on July 2, 2014, subject to appropriate financing, the planned program for the Galt Oil Property consists of:
- The drilling of the Galt 4 Horizontal well (Oil Discovery);
- The drilling of the Galt 5 Horizontal well (Rig Move imminent);
- The acquisition of 3D seismic data, and;
- The drilling of the Galt 6 & 7 Horizontal wells whose locations will be chosen based on 3D seismic data and results of the Galt 4 and 5 Horizontal wells.
Junex holds a 70% interest in the Galt Oil Property, with Junex's partner, Mr. Bernard Lemaire, holding the remaining 30% interest. Junex holds 100% interest in the adjacent acreage. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential.
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 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.
Mr. Peter Dorrins
President & Chief Executive Officer
Mr. Dave Pepin
Vice President - Corporate Affairs