Junex Announces Undiscovered
Gas-in-Place Resources Volumes of 48 TCF and potentially Recoverable
Prospective Gas Resources of 3.7 TCF on its St. Lawrence Lowlands
Permits
APR 19, 2010 - QUEBEC CITY, QUEBEC--(Marketwire -
Apr. 19, 2010) - 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
Undiscovered original gas in place resources ("OGIP") volumes for the
Utica Shale for most of Junex's permits�
in the St. Lawrence Lowlands at 48.34 Trillion Cubic Feet
("TCF").� This 48.34 TCF figure
includes 39.67 TCF of Undiscovered OGIP resources volumes from the NSAI report
dated April 16, 2010 and an additional 8.67 TCF Undiscovered OGIP Resources volumes
for the Nicolet Permit from a previous NSAI report as announced by Junex on
February 9, 2010 (the "Nicolet Permit").��
|
|
Total
Undiscovered OGIP (Bcf)
|
100% Undiscovered original gas-in-place (OGIP)
volumes
|
|
Low
Estimate
|
|
Best
Estimate
|
|
High
Estimate
|
|
|
|
|
|
|
|
Lowlands Permits
(without Nicolet Permit)
|
|
31,815
|
|
39,673
|
|
49,405
|
Nicolet Permit (as
previously reported)
|
|
6,954
|
|
8,666
|
|
10,523
|
Total
|
|
38,769
|
|
48,339
|
|
59,928
|
When combined with Junex's company gross
unrisked prospective resources for the Nicolet Permit, the combined company
gross unrisked prospective resources ranges from a Low Estimate of 1.23 TCF
(effective 4% recovery factor) to a High Estimate of 10.98 TCF (effective 25%
recovery factor), with a Best Estimate of 3.69 TCF (effective 10% recovery
factor) to Junex's net interest in its St. Lawrence Lowlands permits. Company
gross unrisked prospective resources means Junex's share of the unrisked
prospective resources before any Government royalties.
|
|
Junex's
Company Gross* (Bcf)
|
Potentially Recoverable Unrisked Prospective
Gas Resources
|
|
Low
Estimate
|
|
Best
Estimate
|
|
High
Estimate
|
|
|
|
|
|
|
|
Lowlands Permits
(without Nicolet Permit)
|
|
1,087
|
|
3,255
|
|
9,676
|
Nicolet Permit (as
previously reported)
|
|
147
|
|
436
|
|
1,307
|
Total
|
|
1,234
|
|
3,691
|
|
10,983
|
���������������������������������������������������������������������� �* Net to Junex before Government royalties.
The two NSAI evaluations, when combined,
evaluated 632,189 gross acres (approximately 59%) 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., Junex's President and Chief Executive Officer,
commented, "We consider NSAI's "Best Estimate" of 3.7 TCF for
Junex's potentially recoverable Net Prospective Resources to be very
significant for our company.� NSAI's
independent evaluation is an important milestone for the Company since it is
the first time that the Utica Shale Gas potential of most of our extensive
Utica Shale acreage has been independently estimated.� Junex's potentially recoverable Net
Prospective Resources compare favourably with published estimates from other
significant permit holders in the Lowlands Utica Shale Gas play and it also
offers some more room for growth since other large Junex-held permits,
including St-Simon and Beaupr�/Orleans, were not evaluated due to a lack of
scientific data."
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 Junex's St. Lawrence Lowlands
permits as a follow-up to the resources assessment that NSAI completed on the
Nicolet Permit earlier this year.� Using
their expertise in evaluating other shale gas plays, NSAI's 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 Junex's St. Lawrence Lowlands
permits.
This latest NSAI evaluation focused on the
Company's St. Lawrence Lowlands permits (excluding the Nicolet Permit) and
their Utica Shale potential, subdividing these into two tiers:
� The Medium-Deep Tier resources area on the
downthrown side of the Yamaska Fault where the Utica is at a depth generally
greater than 700 meters;
and
� The Shallow Tier resources area on
the upthrown side of the Yamaska Fault where the Utica
is at a depth generally less than 700
meters.
� Undiscovered OGIP resources volumes for the two
tiers range from a Low Estimate of 31.82 TCF to a High Estimate of 49.41 TCF,
with a Best Estimate of 39.67 TCF for the 100% interest.
� When combined with the Undiscovered OGIP
resources volumes for the Nicolet Permit, the combined Undiscovered OGIP
resources volumes range from a Low Estimate of 38.77 TCF to a High Estimate of
59.93 TCF, with a Best Estimate of 48.34 TCF for the 100% interest.
� Junex's company gross unrisked prospective
resources for the two tiers range from a Low Estimate of 1.23 TCF to a High
Estimate of 10.98 TCF, with a Best Estimate of 3.69 TCF to Junex's 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 Report is December 31, 2009.
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 Junex's 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. 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 (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 Inc.
Mr. Jean-Yves
Lavoie
President
418-654-9661
or
Junex Inc.
Mr. Dave
Pepin
Vice President - Corporate Affairs
418-654-9661