🕐22.06.10 - 17:18 Uhr
Junex : 13.75 million barrels of oil of contingent and prospective resources on the Galt property
Hi, please find a press release regarding oil potential on our Galt property
located in the Gaspe area, Eastern Canada.
Do not hesitate to call me if you
have any question in this matter.
Best regards,
Dave Ppin, M.B.A.
Vice president des affaires corporatives
Junex inc.
2795, boulevard Laurier
Bureau 200
Qubec (Qubec) G1V 4M7
Tlphone : (418) 654-9661 poste 225
Tlcopieur : (418) 654-9662
Junex share of prospective plus contingent resources is 13.75 Million
Barrels of oil on its Galt Property, Gasp Peninsula
JUNE 21, 2010 - QUEBEC CITY, QUEBEC-- Junex Inc.
(TSX VENTURE:JNX) ("Junex"
or the "Company") is pleased to announce that Netherland, Sewell &
Associates, Inc., ("NSAI"), an independent reservoir engineering firm based
in Texas, has provided their Best Estimate of the total Original
Oil-in-Place (OOIP) resources at 183 million barrels for the Forillon
Formation on Junexs Galt Field property.
This 183 million barrel figure
includes Discovered Resources volumes of 18.5 million barrels and
Undiscovered resources volumes of 164.6 million barrels as tabulated below.
Gross (100 Percent) OOIP
(Thousands of Barrels)
Original Oil-In-Place (OOIP) Volumes
Low Estimate
Best Estimate
High Estimate
Discovered
12,313
18,452
27,416
Undiscovered
99,829
164,624
262,224
NSAIs Best Estimate of Junexs net share of the total Recoverable Oil
Resource Volume on its Galt Field property is 13.75 million barrels (15%
recovery factor), that includes 0.16 million barrels of Recoverable
Contingent Oil Resources and 13.59 million barrels of Recoverable unrisked
Prospective Oil Resources as tabulated below.
Junexs Company Portion (50%)
(Thousands of Barrels)
Recoverable Oil Resource Volumes
Low Estimate
Best Estimate
High Estimate
Contingent
75
158
283
Prospective
1,608
13,591
37,474
Recovery Factor
3%
15%
26%
Mr.
Jean-Yves Lavoie, P.
Eng., Junexs President and Chief Executive
Officer, commented, "Having recognized the potential of Galt Field, Junex
has been active there since the company was created.
Over the intervening
years, Junexs subsequent testing operations yielded 5,828 barrels of
46-degree API sweet crude oil that were then transported and sold to the
Ultramar refinery near Quebec City.
NSAIs recent evaluation further
confirms this potential.
Their Best Estimate of the total Gross Original
Oil-in-Place resources of 183 million barrels, with a total Recoverable Oil
Resource Volume net to Junex of 13.75 million barrels, is quite significant
for us.
The results of this evaluation may also bode well for the
exploration potential of our adjacent acreage where we recently concluded an
agreement with Ptrolia to increase our interest from 50% to 100%.
Junex
views the Galt project as a resource play and we are currently evaluating
all of our options in order to maximize the value of this project for our
shareholders."
Junex controls a 50% working interest in the 16,645 acre-sized Galt property
on the Gasp Peninsula (Mr.
Bernard Lemaire controls the other 50% working
interest).
Junex recently signed an agreement with Ptrolia in which Junex
acquired 100% working interest on a 36,816 acre-sized block surrounding the
Galt permit.
Furthermore, Junex holds approximately 1.9 million acres of
land in the Gasp region and on Anticosti Island in Eastern Canada.
Results from the NSAI Report
NSAI, a world renowned independent reservoir engineering firm was
commissioned by Junex to conduct a resource assessment (the Report) of the
original oil-in-place (OOIP) and recoverable contingent and unrisked
prospective oil resources to Junexs interest in the Forillon Formation for
its acreage in Galt Field in the Gasp Peninsula in Quebec.
Using their
expertise in evaluating other fractured reservoirs, NSAI s evaluation
includes detailed petrophysical analysis of the available well data
including a review of the available core & lab analysis data and 2D seismic
data & mapping.
All results have been prepared in accordance with the
regulations pursuant to National Instrument 51-101, Standards for Disclosure
for Oil and Gas Activities of the Canadian Securities Administrators.
Discovered resources original oil-in-place (OOIP) volumes are those
quantities of petroleum that are estimated, as of a given date, to be
contained in known accumulations prior to production.
Contingent resources are those quantities of petroleum that are estimated,
as of a given date, to be potentially recoverable from known accumulations
but for which the applied project or projects are not yet considered mature
enough for commercial development because of one or more contingencies.
The contingent resources estimated in the Report are contingent upon (1) the
application of modern drilling and completion technology to establish
significantly higher wellbore productivity (2) demonstration of the economic
viability of project development, and (3) activity prior to expiration of
the leases.
Undiscovered resources OOIP volumes are those quantities of petroleum that
are estimated, as of a given date, to be contained in accumulations yet to
be discovered.
Prospective resources are those quantities of petroleum that are estimated,
as of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Unrisked
prospective resources are estimated ranges of recoverable oil volumes
assuming a petroleum discovery is made and are based on estimated ranges of
undiscovered in-place volumes.
If discovered, there is no certainty that
the resources will be commercially viable or be able to produce any portion
of the prospective resources.
No quantitative geologic risk assessment was conducted by NSAI for this
acreage.
Geologic risking of prospective resources addresses the
probability of success for the discovery of petroleum volumes and without
regard to the chance of development; this risk analysis is conducted
independently of probabilistic estimates of petroleum volumes and without
regard to the chance of development.
Principal risk elements of the
petroleum system include (1) trap and seal characteristics; (2) reservoir
presence and quality; (3) source rock capacity, quality, and maturity; and
(4) timing, migration, and preservation of petroleum in relation to trap and
seal formation.
The resources evaluated in the Report were 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 range and number of parameters rely on the available direct and analog
data from similar reservoirs in a more mature development stage.
It will be
necessary to revise these estimates as additional data become available.
Also, estimates of resources may increase or decrease as a result of future
operations.
The effective date of the Report is March 31, 2010.
About Junex
Junex is a junior oil and gas exploration company that holds exploration
rights on more than 6 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.
As of December 31 2009,
Junex has a working capital of approximately 22.5 million dollars.
Junex
also owns approximately 7.9% of the issued and outstanding shares of
Petrolia (TSX VENTURE:PEA) and 1.0% of the issued and outstanding shares of
Gastem (TSX VENTURE:GMR).
In parallel to its exploration efforts, Junexs
goal is to achieve positive cash flows from its natural brine and drilling
services operations.
Forward looking statements
This news release contains certain forward-looking statements.
These
statements relate to future events or future economic performance of Junex
and carry risks, uncertainties and other factors - both known and unknown -
that may appreciably affect their respective results, economic performance
or accomplishments when considered in light of the content or implications
of statements made by Junex.
Actual events or results could be significantly
different.
Accordingly, investors should not place undue reliance on
forward-looking statements.
Junex do not intend and undertake no obligation,
to update these forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Junex Inc.
Mr.
Jean-Yves Lavoie
President
418-654-9661
or
Junex Inc.
Mr.
Dave Pepin
Vice President - Corporate Affairs
418-654-9661