QUEBEC CITY, QUEBEC--(Marketwire - Dec 11, 2012) - Junex (TSX VENTURE:JNX) is pleased to announce that its wholly-owned subsidiary, Junex USA LLC, has participated in an oil discovery in its first well drilled in the United States. Production testing operations currently underway have recovered approximately 1,000 barrels of oil to date with average rates ranging up to 71 barrels of oil per day. The current rate is approximately 32 barrels of oil per day
This well, known as the Thornburg 27 #6 well, is the first of a multi-well program targeting lower-risk, multi-zone, conventional oil and gas-bearing reservoirs in the Permian Basin in Schleicher County, West Texas. The Thornburg 27 #6 well, drilled to a total depth of 4,507 feet (1,374 metres), has successfully confirmed an extension of the Upper Pennsylvanian-aged McKavitt (Canyon) Sandstone oil reservoirs in the Camar Field in Schleicher County onto the company''s acreage.
Pursuant to an earlier acquisition announced by Junex in a press release on January 18, 2012, along with subsequent acreage swaps and other acquisitions, Junex and its partners have jointly secured a strategic operating position in the area that totals approximately 2,219 gross acres. As previously announced, Junex will earn a 25% leasehold working interest by paying its 25% share of the acquisition costs of the acreage and by participating in the drilling of two initial wells at a level of 33% of the drilling costs "to casing point", of which the Thornburg 27 #6 well is the first well. Any subsequent completion expenditures in the first two wells or drilling and completion expenditures in any other new wells will be at a 25% participating interest level net to Junex.
"We are very excited by this discovery particularly as it was made in our first well drilled in the United States. This success represents the first fruit of the implementation of our strategy to diversify our oil and gas portfolio whereby we are targeting new opportunities in North America that meet our criteria for economically-viable, risk-balanced, oil projects and liquids-rich gas projects. Future wells and operations are planned for this particular project" said Mr. Jean-Yves Lavoie, P. Eng., CEO of Junex.
Telesis Operating Co., Inc., the operator of the project, is an oil and gas exploration/exploitation and production company headquartered in Ft. Worth, Texas. Having been actively engaged in exploration, acquisitions, production and operations in the oil and gas industry since 1980, Telesis currently owns and operates approximately 165 oil and gas wells located primarily in West Texas.
"Notwithstanding the Quebec government-ordained slow-down of operations on our prospective Utica Shale assets, Quebec remains an important focus for our company such as is clearly shown by this summer''s activities. These activities included the drilling of our successful Junex Galt #4 well on the Gaspé Peninsula and the completion of a 224 line-kilometer 2D seismic survey on our prospective Anticosti Island Macasty Shale Oil assets," added Mr. Jean-Yves Lavoie, P. Eng.
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 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 2011 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.