QUEBEC CITY, QUEBEC--(Feb 23, 2015) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is very pleased to announce that a steady production rate of 316 barrels of oil per day ("BOPD") was recorded over the most recent five days of its latest phase of production testing in its Galt No. 4 Horizontal well. This phase started on February 9, 2014, with the maximum oil production rate over a 24-hour period since this date attaining 396 BOPD.
"Respecting our plan published in our February 2nd press release, we proceeded with our oil production testing program and removed the restriction in our surface pumping equipment. Once again, our milestone oilwell responded beyond our expectations and attained a steady rate of 316 BOPD, which is substantially greater than the 161 BOPD rate published in our January 27th press release. Furthermore, the well's pressure regime demonstrates the large extent of this oil accumulation." stated Mr. Peter Dorrins, Junex's President & Chief Executive Officer.
Mr. Dorrins continued: "As we progress further in this production test according to our plan, various pumping parameters will be adjusted to confirm what the optimal production rate would be. While it is premature to confirm what this optimal rate might be, be it ultimately higher or lower than the current rate, all of the results seen since the well has been drilled demonstrate the significance of our oil discovery. To re-emphasize, to the best of our knowledge, this 316 BOPD oil production rate is the highest oil production rate seen so far in Quebec and, according to our calculations, translates into a commercial oil production rate even at today's oil price. "
Over a three-day period at the beginning of this latest phase of testing, the well flowed naturally and unassisted by the pump at a deliberately-restricted rate of 85 BOPD. The pump was then started and was in operation thereafter. During this latter period, various pumping parameters were adjusted and ultimately Junex sequentially increased the rate to a steady production rate of 316 BOPD measured over the latest five-day period.
A total volume of 2,723 barrels of light, sweet crude oil has been produced so far during this second 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 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.
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.