QUEBEC CITY, QUEBEC — (Marketwire) — 09/07/11 — Junex (TSX VENTURE: JNX) announces an update on activities and recent results from its Anticosti Oil exploration program targeting the Macasty Shale (the “Macasty”) on its 100%-held 233,275 acre-sized exploration holdings on Anticosti Island. Recently-received laboratory results infer that the Macasty may have the potential to be a tight, oil to liquid hydrocarbon-rich producing shale formation on Junex–s acreage. Consequently, Junex has proceeded to the next step of its exploration program by completing a geophysical survey on its acreage.
Junex recently received the laboratory analytical results of samples it collected from drill cuttings in the Macasty in the Arco Anticosti No. 1 well (the “Arco well”) that was originally drilled as a stratigraphic test well in 1970. This well, located on one of five petroleum and natural gas exploration permits held by Junex on Anticosti Island, was drilled to a total depth of 3,850 metres and is the deepest well drilled on the island to date.
The laboratory results of the Macasty, as sampled in the Arco well, indicate that the Macasty may have the potential to be a tight, oil to liquid hydrocarbon-rich producing shale formation on Junex–s Anticosti acreage:
Most of Junex–s acreage is located south of the Jupiter Fault Zone where Junex–s mapping interprets that the Macasty averages approximately 80 metres in thickness over its acreage, or approximately two times thicker than the correlative 40 metres of Macasty encountered in the Petrolia/Corridor Chaloupe No. 1 well as reported by these parties in a press release dated February 9, 2011. Also, recent press releases made by neighbouring exploration licence-holders Petrolia and Corridor (on June 29, 2011 and on July 13, 2011 respectively) report that independent evaluations of the Total Petroleum Initially-In-Place on a gross acreage basis exceed 30 billion barrels.
Consequently, Junex is progressing to the next step of its multi-year Macasty Shale Oil exploration program that is planned to sequentially include the following:
“We are very encouraged by these positive lab results and are quickly advancing to the next step of our Shale Oil program on Anticosti. These strategic lands form part of our petroleum/liquids-rich portfolio that also includes our Oil-rich landholdings at Galt and Haldimand on the Gaspe Peninsula. Exploration of these oil properties will be Junex–s focus for the next few years as our activities have been slowed down in the Utica Shale Basin.” commented Mr. Jean-Yves Lavoie, P. Eng., Junex–s President and Chief Executive Officer.
Other
The government of Quebec adopted Bill 18 (2011, Chapter 13) in the National Assembly. As indicated in this new legislation and further clarified in a letter from the Minister of Natural Resources and Wildlife that Junex receive, there exist provisions to exempt petroleum and natural gas exploration permit holders “from performing the work required under the Mining Act until the date determined by the Minister, which date may not be later than 13 June 2014”. The duration of the exploration permits was also extended by the same period of time as the exemption. This aspect of the legislation is important as it will permit Junex to conserve its rights into the future.
Notwithstanding this, exploration permit holders may continue to perform work during the exemption period if they so wish, subject to certain requirements related to the government–s Strategic Environmental Evaluation that might apply to some types of operations. In this new legislation, the government also unilaterally revoked without compensation all of the oil and gas exploration permits located in the St. Lawrence River and on Orleans Island, which impacted only about 4% of Junex–s landholdings in Quebec.
About Junex
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. As of June 30, 2010, Junex has a working capital of more than 17 million dollars. In parallel to its exploration efforts, 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 . 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 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.
Contacts:
Junex Inc.
Mr. Jean-Yves Lavoie
President
418-654-9661
Junex Inc.
Mr. Dave Pepin
Vice President – Corporate Affairs
418-654-9661