QUEBEC CITY, QUEBEC, Jul 16, 2012 (MARKETWIRE via COMTEX) — Junex CA:JNX +1.25% is pleased to announce 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. 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 (“Macasty”) and deeper geologic horizons on Junex’s solely-held, 233,275 acre-sized block of exploration permits.
A public information session was held with interested parties in Port Menier on Anticosti Island on July 5, 2012, at which time Junex provided information about the nature and impact of its seismic program and answered questions raised by the public.
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 envisaged 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.
Junex’s interpretation of pertinent lab data indicates that the organic-rich Macasty on its acreage places it within the Oil Window of thermal maturity, with the top of the Macasty ranging in depth from approximately 800 metres to 2,200 metres. 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 (or reservoir energy) that could yield an increased production potential in the event that the exploration program continues to yield positive results.
In terms of petroleum potential, Junex’s acreage was previously evaluated by Netherland, Sewell & Associates, Inc., (“NSAI”), 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 (“OIIP”) volume for the Macasty Shale on Junex’s acreage at 12.2 billion barrels.
About the NSAI Report
Details about the NSAI Report were previously announced by Junex in a press release on September 28, 2011 and it is recommended that the reader consult this press release for further information. The resource estimates in the report must be treated as scoping level estimates and used with caution. Undiscovered petroleum initially-in-place (OIIP) (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in accumulations yet to be discovered. The undiscovered shale OIIP volumes shown in the report were estimated from data available, as of September 1, 2011, but the data were insufficient in quality or quantity for these volumes to be classed as discovered. There is no certainty that any portion of the in-place volumes will be discovered.
The OIIP in the Report was determined from a range of possible values for multiple parameters. These parameters were limited to the critical driving factors for both statistical and practical reasons.
The probabilistic analysis performed by NSAI created cumulative probability distribution curves that defined a range of potential outcomes. As described in the Canadian Oil and Gas Evaluation Handbook (COGEH), the resulting probability distribution curves represent the low estimate, best estimate, and high estimate, which correspond to the P90, P50, and P10 probability estimates of hydrocarbon volumes, respectively. The probability that the quantities of oil actually in place will equal or exceed the estimated amounts is 90 percent for the low estimate, 50 percent for the best estimate, and 10 percent for the high estimate.
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, Junex’s goal is to achieve positive cash flows from its natural brine and drilling services operations.
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 2010 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.
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