First Propane Frac of
the Utica Shale
at St-Augustin: a Successful Test
for Junex
November 25, 2009// Junex is pleased to
announce that it has successfully completed the first propane frac of a Shale
in Eastern Canada, at the Junex Saint Augustin-de-Desmaures #1 well. For the first time in Quebec,
the Utica Shales were fracture stimulated at shallow depths between 436.5 and 473.5
meters. The frac was performed by GASFRAC Energy Services
Inc. of Calgary,
using the patented VantageTM technique. The operations
consisted of opening the perforations with 1
m3 of acid (HC1-20Be) and injecting 61 tons of
sand (40/70) propelled by 251
m3 of propane. During this time, Schlumberger recorded
the micro-seismic events associated with fracture generation from an
observation well drilled for that purpose.
The preliminary results from the micro-seismic analysis indicate that
fractures were generated in two zones.
From October 26th to November 12th
2009, Select Production Services of Whitecourt (AB) proceeded to flow the well
for clean-up and production testing.
According to Select's data, production of 7.4
m3 of oil (47 barrels) and a gas flow,
including the injected propane, of 13.2 x 103m3/day (467 mcf/day) were observed during the
first 109 hours. Following this,
the oil flow practically stopped (total production of 8.5m3) and the
average gas flow was 2,6x103m3 (92 mcf/day). No sand or water was observed during the
test.
On November 9th, production tubing
was installed in the well by Foragaz, a division of Junex. Flowing of the well continued until the
well was shut-in on November 12th. At the time of shutting-in of the well,
the casing pressure was 281 kpag (increasing just before shut-in), the tubing
pressure was 4 kpag (decreasing just before shut-in) and a gas flow of 1,2103m3
(42 mcf/day) was measured. The gas
composition at the end of the flow period was 50% propane. Junex then installed
downhole gauges in the well to measure the pressure build-up. The data from
these gauges, as well as data from downhole gauges installed below a bridge
plug in the observation well, will be analyzed after their retrieval in two
months' time.
On November 12th 2009, Junex
delivered 5,570 kg
of the crude oil produced during clean-up operations in the St-Augustin well
(42 barrels at 36.7 API) to the Ultramar refinery near Quebec
City.
"We successfully demonstrated that it is
possible to adequately and safely frac the Utica Shale at depths shallower than
500 meters
by applying propane technology.
Moreover, gas analyses of the St-Augustin #1 well have shown that the
Shale contains a gas rich in propane and butane, however we were surprised by
the significant presence of high quality light crude oil. We note that, for the first time, the
north shore of the Lowlands Basin, as opposed to the heart of the basin, can
harbour light oil, which can present a technical challenge for natural gas
production but can make up for this by creating an added value. Junex is one of the only companies to
hold important blocks of permits in all regions of the Lowlands, including the
north shore, and our technical team is analyzing all of the data related to the
frac in order to better understand the characteristics of the Shales at shallow
depths, thus improving the formulation of future frac recipes" stated the
president of Junex, Mr. Jean-Yves
Lavoie, P. Eng
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 (TSXV :
PEA) and 1.0% of the issued and outstanding shares of Gastem (TSXV : 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.
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For information about Junex:
Mr. Jean-Yves
Lavoie
President
418-654-9661
|
Mr. Dave
P?pin
Vice President - Corporate Affairs
418-654-9661
|