Mr. Lavoie continued, "These results encourage us to submit a request for a drilling permit for one or two horizontal legs to be drilled from the Galt No. 4 wellbore during the summer of 2013. In our opinion, the Galt project is the most advanced oil project in the province of Quebec that has the added benefit of being situated far from densely populated areas. As such, the Galt project could serve as a demonstration project for future oil development in the region."
In the above two quotes, Junex refers to certain increases in resource volumes relative to the last evaluation completed by NSAI that was announced by Junex in a press release on October 24, 2011, and it is recommended that the reader also consult this press release for comparative purposes.
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 Junex's interest in the Forillon and Indian Point formations for its acreage in Galt Field in the Gaspe 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 oil-initially-in-place (OIIP) 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 OIIP 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 December 31, 2012.
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. As of September 30, 2012, Junex has a working capital of more than 17.6 million dollars. 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
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.
Mr. Jean-Yves Lavoie, P. Eng.
Chief Executive Officer
Mr. Dave Pepin
Vice President - Corporate Affairs
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