JUNEX INC. AND CUDA ENERGY INC. PROVIDE OPERATIONAL UPDATE ON HIGH GROWTH WYOMING POWDER RIVER BASIN LIGHT OIL DEVELOPMENT
Junex Inc. and Cuda Energy Inc., collectively, have started drilling operations on the Barron Flats (Deep) unit in the Powder River basin, Wyoming. The acquisition of the Barron Flats assets will be completed concurrently with the closing of the arrangement between Junex and Cuda disclosed in the press release issued on June 11, 2018, to be voted on at Junex's shareholder meeting to be held on Aug. 2, 2018.
The BFU 23-14V (SW 14-35N-76W06) vertical Shannon development well has been spud. The near term drilling program will include six (6) gross wells. The Operator, Southwestern Production Corp., has obtained 15 drilling licenses/permits for Shannon light oil wells. Included in the drill program will be a high-graded deep vertical stratigraphic test to the Lakota formation to confirm the commercial viability of numerous high impact light oil formations below the Shannon formation which would be developed with horizontal wells. In addition to the commencement of the drilling program at the Barron Flats (Deep) Unit, the following activities are currently ongoing:
Electrification is underway with wells expected to be on power by the end of August. Electrification eliminates the need for rental wellsite generators, which is projected to reduce operating costs by approximately US$3,000 per well per month.
The gas processing facility and compression site has been constructed and is being prepared for installation and commissioning which is anticipated to occur in October to coincide with the completion of the gas gathering system which is currently being constructed.
Sinclair-Converse Transport Midstream, a mid-stream company with assets to be held 33.33% by the Combined Company, is in the process of acquiring an existing right of way which it will utilize for the installation of (i) a spur to connect into an existing oil sales line; and (ii) a natural gas pipeline.
With these active ongoing field developments, the Combined Company will be on track to achieving 2018 exit production of 2,000 boe/d (60% oil and liquids) and achieve top quartile operating netbacks forecasted to average approximately C$33.00/boe in the second half of 2018 based on strip pricing. Additionally, both Junex and Cuda continue to advance Junex's portfolio of oil and gas projects in Quebec and stand ready to proceed with a development program upon receipt of development permits and production licenses.
Mr. Jean-Yves Lavoie and Mr. R. Glenn Dawson had the following to say regarding the update: "We are very excited to embark on an active development program where the combined company has in place all the permits necessary to continue our fully funded 15-20 well development program in Wyoming. With the growth in cash flow from Wyoming the Combined Company will be well positioned to fund development in Quebec when appropriate. The planned development program represents a significant increase in activity for the Junex shareholders and we look forward to updating shareholders as to our progress in the coming weeks and months."
About Junex Inc.
Junex is a Quebec SME that seeks to be a catalyst in accessing Quebec's oil and gas resources, while ensuring that their development becomes an important means of creating collective wealth for Quebeckers. Junex's operations are conducted in a responsible manner, in strictest compliance with the rules, laws and regulations that govern oil and gas activities. To that end, every day it takes all measures to minimize the environmental impact of its activities.
About Cuda Energy Inc.
Cuda, a privately held corporation based in Calgary, Alberta, is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America.
The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long term focus on large, light oil resource based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.