QUEBEC CITY, QUEBEC–(Marketwired – June 30, 2016) – Junex Inc. (TSX VENTURE:JNX) (“Junex” or the “Company”) is pleased to announce that long-term oil production testing of its Galt No. 4 Horizontal well is underway. The cumulative oil recovered from production testing since the well finished drilling in November 2014 stands at approximately 9,650 barrels, which firmly places Junex’s Galt No. 4 Horizontal well as having the largest oil recovery ever seen in Quebec’s history.
Production Testing of the Junex Galt No. 4 Horizontal Well
This latest phase of production testing commenced in early June after receipt of approvals from the Quebec Government that allow for up to another 180 days of testing for a total of 240 days of testing in this well.
The principal goal of Junex’s extended production testing of its Galt No. 4 Horizontal well is to collect additional reservoir data to determine the optimal commercial rate at which to produce this well and future wells on the Galt Oil Property. The testing program includes producing the well at varying production rates during the 180-day testing period as well as over different portions of the horizontal wellbore in the Forillon oil reservoir. Subject to results from these ongoing production testing operations, other operations may be performed.
The well has produced approximately 1,620 barrels of light crude oil during this latest phase of production testing. The cumulative oil produced from testing operations since the well was drilled in late 2014 is approximately 9,650 barrels over a total of 90 days of production testing, including certain days when production was lower while the pump was being adjusted.
Analysis of Oil Properties
The oil produced from the Galt no. 4 Horizontal well is of excellent quality. With the goal of providing the highest financial returns to Junex when marketing its oil to refiners, the oil will also be further sampled and analyzed with the goal of ascertaining the best yield of refined products, including lubricants, petrochemical feedstock, fuel additives, fuels and other products.
Junex Galt No. 5 Horizontal Well
The first stage of field operations in the Galt No. 5 well was performed earlier in June according to the schedule announced in Junex’s March 2nd 2016 press release. These operations are designed to further evaluate the horizontal leg where abundant natural fractures and oil shows were recorded in the lower portion of the Forillon Limestone and the upper portion of the Indian Point Formation.
At present, the well is shut-in for pressure build-up measurements over the next 2 to 3 months. If the results from this indicate that the horizontal leg drilled in the lower portion of the Forillon Limestone and the upper portion of the Indian Point Formation in the Galt No. 5 well can be commercially produced, then extended production testing operations of up to 8 months in duration are planned. If the results indicate the contrary, other options include, but are not limited to, drilling a second horizontal leg into the upper portion of the Forillon Limestone reservoir from the vertical portion of the well.
3D Seismic and Future Wells
The 3D seismic survey that was acquired in late 2015 covers an area of 37 km2 on the Galt Oil Project. The data are of very good quality and provide invaluable information as to the nature of the Galt Structure and the optimal siting of future horizontal wells to be drilled on the structure. A number of drilling locations are currently being finalized from the final interpretation of the 3D seismic and the preparation of drilling permit requests is underway.
About Junex
Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land in the Appalachian basin in the Province of Quebec, including the Galt Oil Property on the Gaspé Peninsula in eastern Quebec, landholdings on Anticosti Island in the Gulf of St. Lawrence and landholdings in the St. Lawrence Lowlands between Montreal and Quebec City. 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 7 to 10 of Junex’s 2014 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.
Mr. Peter Dorrins
President & Chief Executive Officer
418-654-9661
Junex Inc.
Mr. Dave Pepin
Vice President – Corporate Affairs
418-654-9661