🕐14.02.11 - 21:27 Uhr
Junex increase its Potentially Recoverable Prospective Gas Resources to 4.26 Tcf
Hi, please find Junex press release in regards to the increase of gas
resources in the Utica play.
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 Announces an Increase in its Prospective Original Gas-in-Place Volumes
and Potentially Recoverable Prospective Gas Resources for its St.
Lawrence
Lowlands Permits
FEB 14, 2011 06 :30 ET - QUEBEC CITY, QUEBEC--(Marketwire Feb.
14, 2011)
- Junex Inc.
(TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to
announce that Netherland, Sewell & Associates, Inc., ("NSAI"), an
independent petroleum consulting firm based in Texas, has provided their
"Best Estimate" of the prospective original gas in place ("OGIP") volumes
for the Utica Shale on Junexs Orlans Permits in the St.
Lawrence Lowlands
at 5.58 Trillion Cubic Feet ("TCF").
When combined with the 48.34 TCF of
prospective OGIP volumes for the Utica Shale for most of Junexs permits in
the St.
Lawrence Lowlands as previously announced by Junex on April 19,
2010, the revised total volumes for most of Junexs Utica Shale permits now
stand at 53.92 TCF.
Total Undiscovered OGIP (Bcf)
100% Prospective original gas-in-place (OGIP) volumes
Low Estimate
Best Estimate
High Estimate
Orlans Permits (as of 12/31/10)
4,529
5,578
6,902
Lowlands (previously reported, as of 12/31/09)
38,769
48,339
59,928
Total
43,298
53,917
66,830
When combined with Junexs company gross unrisked prospective resources for
the remainder of Junexs Utica Shale acreage as announced in a press release
on April 19, 2010, the combined company gross unrisked prospective resources
ranges from a Low Estimate of 1.42 TCF (effective 4% recovery factor) to a
High Estimate of 12.70 TCF (effective 25% recovery factor), with a Best
Estimate of 4.26 TCF (effective 10% recovery factor) to Junexs net interest
in its Lowlands permits.
Company gross unrisked prospective resources means
Junexs share of the unrisked prospective resources before any Government
royalties.
Junexs Company Gross* (Bcf)
Potentially Recoverable Unrisked Prospective Gas Resources
Low Estimate
Best Estimate
High Estimate
Orlans Permits
190
570
1,720
Lowlands (as previously reported)
1,234
3,691
10,983
Total
1,424
4,261
12,703
* Net to Junex before Government royalties.
The three NSAI evaluations, when combined, evaluated 705,096 gross acres
(approximately 66%) of the total of 1,064,696 gross acres held by Junex in
the Utica Shale play in the St.
Lawrence Lowlands.
The unevaluated portions
represent areas where NSAI indicated that further evaluation and additional
data are required to quantify their gas-in-place volumes and prospective
resource estimates.
Mr.
Jean-Yves Lavoie, P.
Eng., Junexs President and Chief Executive
Officer, commented, "NSAIs recent estimate of the resource potential of the
Utica on Junexs Orleans permits confirms what we consider to be a valuable
component of our Utica Shale portfolio.
To place this into perspective in
terms of NSAIs Best Estimate of OGIP, this addition represents an increase
of approximately 12% in our Undiscovered OGIP resources volumes.
Similarly,
in terms of NSAIs Best Estimate of Junexs company gross unrisked
prospective resources, this also represents an increase of approximately 16%
in the Potentially Recoverable Unrisked Prospective Gas Resources."
Results from the NSAI Report
NSAI, a world renowned independent petroleum consulting firm was
commissioned by Junex to complete a resources assessment ("the Report") of
the Utica Shale on Junexs Orlans permits as a follow-up to the two
resource assessments that NSAI completed on the Nicolet Permit and Junexs
St.
Lawrence Lowlands permits in early 2010.
Using their expertise in
evaluating other shale gas plays, NSAIs evaluation includes detailed
petrophysical and geologic analysis including a review of the available core
and lab analysis data.
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.
The evaluation does not include any evaluation of the
shallower Lorraine Formation on Junexs St.
Lawrence Lowlands permits.
This latest NSAI evaluation focused on the Companys Orlans permits and
their Utica Shale potential.
For reference, the Orlans permits include
Junexs 2006PG908, 2006PG909, 2007PG922 and 2009PG492 petroleum & natural
gas exploration permits.
When combined with the Undiscovered OGIP resources volumes for the remainder
of Junexs St.
Lawrence Lowlands lands evaluated by NSAI, the combined
Undiscovered OGIP resources volumes range from a Low Estimate of 43.30 TCF
to a High Estimate of 66.83 TCF, with a Best Estimate of 53.92 TCF for the
100% interest.
When combined with the Junexs company gross unrisked prospective resources
for the remainder of Junexs St.
Lawrence Lowlands lands evaluated by NSAI,
the combined company gross unrisked prospective resources range from a Low
Estimate of 1.42 TCF to a High Estimate of 12.70 TCF, with a Best Estimate
of 4.26 TCF to Junexs net interest in the permits.
OGIP is not a defined term within National Instrument 51-101 and is
considered equivalent to Petroleum Initially In Place ("PIIP").
Undiscovered resources are those quantities of petroleum estimated on a
given date to be contained in accumulations yet to be discovered.
Prospective resources are those quantities of petroleum estimated on a given
date to be potentially recoverable from undiscovered accumulations.
If
discovered, they would be technically and economically viable to recover by
application of future development projects.
Prospective resources have both
a chance of discovery and a chance of development.
There is no certainty
that any portion of the resources will be discovered.
If discovered, there
is no certainty that the resources will be commercially viable or be able to
produce any portion of the resources.
The effective date of the Orlans
Report is December 31, 2010.
No quantitative geologic risk assessment was conducted by NSAI for this
acreage.
Geologic risking of prospective resources address the probability
of success for the discovery of petroleum 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; i.
trap and seal characteristics; ii.
reservoir
presence and quality; iii.
source rock capacity, quality, and maturity; and
iv.
timing, migration, and preservation of petroleum in relation to trap and
seal formation.
The prospective resources discussed and shown in the Report are those
undiscovered, highly speculative resources estimated beyond reserves or
contingent resources where geological and geophysical data suggest the
potential for discovery of petroleum but where the level of proof is
insufficient for classification as reserves or contingent resources.
The
unrisked prospective resources are those volumes that could reasonably be
expected to be recovered in the event of the successful exploration and
development of Junexs St.
Lawrence Lowlands permits.
The resources evaluated in the Report are based on estimates of reservoir
volumes and recovery efficiencies along with analogy to properties with
similar geologic and reservoir characteristics.
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.
Junex holds more than 1.5 million gross acres of permit in the St.
Lawrence
Lowlands of which approximately 1.1 million acres cover portions of the
Utica play.
Junexs permits are located in all areas of the Utica play,
including the shallow, medium, deep, and structured parts of the Basin.
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 September 30,
2010, Junex has a working capital of approximately 18 million dollars.
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