🕐09.02.10 - 15:42 Uhr
Junex Announces Prospective Original Gas In Place Resources on the Nicolet Permit of 8.67 TCF
Junex Announces Prospective Original Gas In Place Resources on the Nicolet
Permit of 8.67 TCF
Quebec City, Quebec February 9, 2010 // Junex Inc.
(TSX Venture: JNX)
(Junex or the Company) is pleased to announce that Netherland, Sewell &
Associates, Inc., ("Netherland Sewell"), an independent reservoir
engineering firm based in Texas, has provided their Best Estimate of the
Prospective Original Gas in Place Resources (OGIP) volumes for the Utica
Shale on the Companys Nicolet Permit in the St.
Lawrence Lowlands at 8.67
Trillion Cubic Feet (TCF).
Junexs 50% interest of this Prospective
Resources OGIP volume is 4.33 TCF.
Netherland Sewell, a world renowned independent reservoir engineering firm
was commissioned by Junex and partner Canadian Quantum to complete a
resources assessment (the Report) of the Utica Shale on the Nicolet Permit
following the drilling of the Junex St-Grgoire No.
2 and the Junex
St-Grgoire No.
3 wells in 2009.
Using their expertise in evaluating other
shale gas plays, Netherland Sewells 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 jointly held shallower
Lorraine Formation in the Nicolet Permit.
The Netherland Sewell evaluation focused on the Companys Nicolet Permit and
its Utica Shale potential.
The Reports findings are detailed as follows:
In the Report Netherland Sewell evaluated 97% of the 59,090 acre Nicolet
Permit and subdivided it into three segments:
- The Northwest Segment on the upthrown side of the Yamaska Fault
where the Utica is shallower and slightly over pressured encompasses 12.9%
of the Permit; and
- The Central (Medium-Deep) Segment on the downthrown side of the
Yamaska Fault where the Utica is deeper and over pressured encompasses 69.1%
of the Permit; and
- The Southeast (Deep) Segment on the downthrown side of the
Yamaska Fault where the Utica is deepest and over pressured encompasses
18.0% of the Permit.
Prospective Undiscovered Resources OGIP for the combined segments
range from a Low Estimate of 6.95 TCF to a High Estimate of 10.52 TCF, with
a Best Estimate of 8.67 TCF for the joint 100% interest.
For the joint 100% interest, on an acreage basis, the Best Estimate
of Prospective Resources OGIP is 126 Billion Cubic Feet per square mile
(126 BCF/section) in the Deep Segment of the Nicolet Permit, with a Low
Estimate of 102 BCF/section and a High Estimate of 153 BCF/section.
The
weighted average Best Estimate over the entire Permit is 97 BCF/section.
Junexs company gross unrisked prospective resources range from a
Low Estimate of 147 BCF to a High Estimate of 1,307 BCF over the entire
Nicolet Permit.
A Best Estimate of a net 436 BCF to Junexs 50% interest
using a 10% recovery factor was made.
Mr.
Jean-Yves Lavoie, P.
Eng., Junexs President and Chief Executive
Officer, commented, "NSAIs Best Estimate of 4.33 TCF for Junexs net
share of the Prospective OGIP volume is quite significant for our company.
Even with a relatively conservative recovery factor of 10%, NSAIs Best
estimate of potentially recoverable Net Prospective Resources is set at 436
BCF for Junexs share of this permit which represents approximately 6.6% of
our total net acreage in the combined medium, deeper and structured portions
of the Utica Shale play in the Lowlands and represents about 4.1% of our
total net acreage portfolio in the combined deeper, structured and shallow
to medium-depth portions of the Utica Shale play."
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 Report is December 31, 2009.
No quantitative geologic risk assessment was conducted by Netherland Sewell
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 the Nicolet Permit.
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.
In companys opinion, more than 720,000 net acres are prospective
for Utica Shales.
Junex,s 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 December 31 2009,
Junex has a working capital of approximately 22.5 million dollars.
Junex
also owns approximately 7.9% of the issued and outstanding shares of
Petrolia (TSXV : PEA) and 1.0% of the issued and outstanding shares of
Gastem (TSXV : GMR).
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.
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For information about Junex:
Mr.
Jean-Yves Lavoie
President
418-654-9661
Mr.
Dave Ppin
Vice President Corporate Affairs
418-654-9661