09.06.15 - 14:54 Uhr
Junex Announces a 69% Increases of its Total Oil-Initially-in-Place Resources on its Galt Oil Property Now Evaluated at 557 Million Barrels
JUNE 9, 2015 - QUEBEC CITY, QUEBEC-- Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce that Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, has provided an update of their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources at 557 million barrels for the Forillon and Indian Point formations on Junex´s Galt Field property on the Gaspe Peninsula. This represents a 227 million barrel increase (69%) with respect to NSAI´s previous Best Estimate of the total OIIP resources as outlined in a press release made by Junex on March 27, 2013.
NSAI´s evaluation considers new information from the Junex Galt No. 4 Horizontal oil discovery well drilled in late 2014, including, but not limited to, data from subsequent oil production testing that yielded a total of 7,200 barrels of light, sweet oil at rates varying up to more than 300 barrels of oil per day (see Junex press releases from January 27th 2015, February 2nd 2015, Feburary 23rd 2015 and March 16th 2015). This 557 million barrel figure includes Discovered Contingent OIIP volumes of 81 million barrels and Undiscovered Prospective OIIP volumes of 476 million barrels in the combined Forillon and Indian Point formations as tabulated below:
Gross (100 Percent) OOIP
(Millions of Barrels)
Oil-Initially-In-Place (OIIP) Volumes
NSAI´s updated Best Estimate of Junex´s net share of the total Recoverable Oil Resource Volume on its Galt Field property is 55.7 million barrels, that includes 5.7 million barrels of Recoverable Contingent Oil Resources and 50 million barrels of Recoverable unrisked Prospective Oil Resources as tabulated below:
Junexs Company Portion (70%)
(Millions of Barrels)
Recoverable Oil Resource Volumes
Recovery Factor - Contingent Resources
Recovery Factor - Prospective Resources
Mr. Peter Dorrins, Junexs President & Chief Executive Officer, stated: "In looking at these numbers, the positive impact of our successful Galt No. 4 Horizontal well can be clearly seen. The Discovered Contingent OIIP volumes have more than doubled to 80.8 million barrels and Junex´s share of the recoverable portion of these has increased by approximately 1500% to 5.7 million barrels. These are a direct result of an increase in size of the area where Contingent Resources have been established as well as increased certainty as to the oil recovery factor and other oil characteristics."
Mr. Dorrins continued: "In addition, an enlargement of the size of the prospective area within the Galt Oil Property has contributed to the increase in the total Oil-Initially-In-Place ("OIIP") resources to 557 million barrels, of which Junex´s net share of the Recoverable Oil volumes has increased by 81% to 55.7 million barrels. Moving forward, our financing activities to fund the next phase of this project are well underway. Subject to attaining our financing goals, as previously announced we intend to drill the Galt No.5 Horizontal well, acquire a detailed 3D seismic program, then drill the Galt No. 6 and No. 7 Horizontal wells whose final locations will be determined from the 3D seismic data. Also, further oil production testing of our Galt No. 4 Horizontal well is planned. "
In the above two quotes, Junex refers to certain increases in resource volumes relative to the last evaluation completed by NSAI that was announced by Junex in a press release on March 27, 2013, and it is recommended that the reader also consult this press release for comparative purposes. Similarly, a small portion of the increase in Junex´s net share of the Recoverable Oil volumes was due to Junexs increase in working interest from 68.82% to 70% in the Galt Oil Property that took place since the March 27, 2013 announcement.
Junex holds 100% interest in the acreage adjacent to the Galt Oil Property. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential. These properties are situated approximately 20 kilometers west of the town of Gaspé in eastern Quebec.
Results from the NSAI Report
NSAI, a world renowned independent reservoir engineering firm was commissioned by Junex to conduct a resource assessment ("the Report") of the original oil-in-place (OOIP) and recoverable contingent and unrisked prospective oil resources to Junex´s interest in the Forillon and Indian Point formations for its acreage in Galt Field in the Gaspé Peninsula in Quebec. Using their expertise in evaluating other fractured reservoirs, NSAIs evaluation includes detailed petrophysical analysis of the available well data including a review of the available core & lab analysis data and 2D seismic data & mapping. 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.
Discovered resources oil-initially-in-place (OIIP) volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in known accumulations prior to production.
Contingent resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations but for which the applied project or projects are not yet considered mature enough for commercial development because of one or more contingencies.
The contingent resources estimated in the Report are contingent upon (1) demonstration of the economic viability of project development, (2) approval of a field development plan by Junexs board of directors and the appropriate government authorities, and (3) activity prior to expiration of the leases. If these contingencies are successfully addressed, some portion of the contingent resources estimated in this report may be reclassified as reserves; NSAI´s estimates have not been risked to account for the possibility that the contingencies are not successfully addressed. There is no certainty that it will be commercially viable to produce any portion of the contingent resources.
Undiscovered resources OIIP volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in accumulations yet to be discovered.
Prospective resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Unrisked prospective resources are estimated ranges of recoverable oil volumes assuming a petroleum discovery is made and are based on estimated ranges of undiscovered in-place volumes. If discovered, there is no certainty that the resources will be commercially viable or be able to produce any portion of the prospective resources.
Reserves, contingent resources, and prospective resources should not be combined without recognition of the significant differences in the criteria associated with their classification. However, in some instances (e.g., basin potential studies) it may be desirable to refer to certain subsets of total PIIP. For such purposes the term "resources" should include clarifying adjectives "remaining" and "recoverable," as appropriate. For example, the sum of reserves, contingent and prospective resources estimates involve additional risks, specifically the risk of not achieving commerciality and exploration risk, respectively, not applicable to reserves estimates. Therefore, when resources categories are combined, it is important that each component of the summation also be provided, and it should be made clear whether and how the components in the summation were adjusted for risk.
No quantitative geologic risk assessment was conducted by NSAI for this acreage. Geologic risking of prospective resources addresses the probability of success for the discovery of petroleum volumes and without regard to the chance of development; 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 (1) trap and seal characteristics; (2) reservoir presence and quality; (3) source rock capacity, quality, and maturity; and (4) timing, migration, and preservation of petroleum in relation to trap and seal formation.
The resources evaluated in the Report were determined from a range of possible values for multiple parameters. These parameters were limited to the critical driving factors for both statistical and practical reasons. The range and number of parameters rely on the available direct and analog data from similar reservoirs in a more mature development stage. 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.
The effective date of the Report is May 31, 2015.
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 Junexs 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 Junexs business and activities appears under the heading "Risks and Uncertainties" on pages 7 to 10 of Junexs 2014 annual managements 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 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
Mr. Dave Pepin
Vice President - Corporate Affairs