JUL 30, 2009 - 09:00 ET - QUEBEC, QUEBEC--(Marketwire - July 30, 2009) - Junex (TSX VENTURE:JNX) announces its intention to focus the majority of its resources on the development of its significant land position in the St. Lawrence Lowlands, and, as such, Junex will not participate financially in the Haldimand No. 2 well located on the Gaspe Peninsula in eastern Quebec.
Junex has therefore notified its partners of its decision to resign as Operator of the Haldimand Project (9 km2) and of its non-participation in the drilling of the Haldimand No. 2 well. In accordance with a recent amendment to the Agreement signed on May 6, 2008, Petrolia therefore becomes Operator of the Haldimand project on the entire joint area (9 km2) and has agreed to drill a second well, the Haldimand No. 2 well, on the property before December 31, 2009. Junex's decision will result in a reduction of Junex's working interest in this project by 9.6% once Petrolia starts drilling the Haldimand No. 2 well. This modification in working interest is subject to a final adjustment that will be based on the actual drilling costs incurred for the Haldimand No. 2 well. The overall cost of this well is estimated at $3.1 million. After completion of the drilling of the well according to the programme, the partners' interests are estimated to be as follows: Petrolia 55%, Junex 35%, Gastem 10%.
"Junex is in the heart of significant gas exploration activity aiming at developing the Utica and Lorraine Shales and we believe that the commercial success of this Shale Gas project could have a major impact on our shareholders' value. This explains our intention to concentrate the majority of our resources on our projects in the St. Lawrence Lowlands during the coming months.", indicated Junex's president, Mr. Jean-Yves Lavoie, P. Eng.
"While the Haldimand project remains in the initial stages of exploration, we continue to believe in its oil potential. However, considering today's context of challenging financial markets, Junex has revised its investment budgets to ensure the protection of its capital and completing the 2009 financial year with at least $20 million in its treasury. Considering the risks and high costs associated with the drilling of the Haldimand No. 2 well, we believe it is in our shareholders' best interests to focus investment of our financial resources to our projects in the St. Lawrence Lowlands instead of the Haldimand project.", continued Mr. Lavoie.
If the Haldimand No. 2 well is drilled according to the current well cost estimate and budget, then Junex will maintain, without having financially participated in the drilling of the well, an interest of approximately 35% in the overall Haldimand Project (9 km2), including both wells No. 1 and No. 2. Furthermore, Junex still holds a 50% interest in a strip of permits covering 30 km2 and linking together the Galt (JNX: 50%) and Haldimand projects.
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 Ste Lawrence Lowlands. As of December 31 2008, Junex has a working capital of 28 million dollars. Junex also owns approximately 7.9% of the issued and outstanding shares of Petrolia (TSX VENTURE:PEA) and 1.0% of the issued and outstanding shares of Gastem (TSX VENTURE:GMR). In parallel to its exploration efforts, Junex's 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
Mr. Jean-Yves Lavoie
President
418-654-9661
or
Junex
Mr. Dave Pepin
Vice President - Corporate Affairs
418-654-9661