Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce that it started drilling its Junex Galt No. 4 Horizontal well earlier today with its recently-acquired, 3,000 meter-capacity Foragaz No. 4 drilling rig.
The Company also announces reception of a new drilling permit from the Quebec government for its next horizontal well on the property, the Junex Galt No. 5 Horizontal well, which the Company intends to drill following the Galt No. 4 Horizontal well.
Mr. Peter Dorrins, Junex's President & Chief Executive Officer comments: "The Galt No. 4 Horizontal well is a "First" in two respects: not only is it the first horizontal well on our Galt Oil Property but it is also the first horizontal oil exploration well ever to be drilled by industry anywhere east of Quebec City in the province of Quebec. With our long-standing partner in the Galt Oil Property, Mr. Bernard Lemaire, we are quite excited to be drilling this milestone well in the most advanced oil project in Quebec. We are proud that this well is being drilled with our own drilling rig staffed by our Quebec-resident employees."
Mr. Dorrins continues: "With a sizeable resource potential of 330 million barrels of total Oil-Initially-In-Place, this oil project contains the largest combined Discovered Contingent Oil Resource and Undiscovered Prospective Oil Resource potential established by independent evaluators so far on the Gaspé Peninsula. We forecast that the planned 1,300 meter-long horizontal leg of the Galt No. 4 Horizontal well should take between approximately 55 days to drill, after which testing operations are planned to commence."
The Galt No. 4 Horizontal well is being drilled from the existing Junex Galt No. 4 vertical wellbore towards the Galt No. 3 well and is designed to optimally intersect the maximum number of open, near-vertical, natural fractures in the Forillon Formation reservoir. The initial production rate of 180 barrels of light oil per day recently achieved during a production test in the Junex Galt No. 3 vertical well, that emanated from only a few near-vertical fractures in the well, demonstrated the potential of the Forillon reservoir on the Galt Oil Property and permitted the Company to review and finalize its plans for testing of the Galt No. 4 Horizontal well in the event that it is successful (see Junex's July 2, 2014 and August 5, 2014 press releases).
Junex holds a 70% interest in the Galt Oil Property and 100% interest in the adjacent acreage. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential. These landholdings are situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.
Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, has previously established their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources for the Forillon and Indian Point formations on Junex's Galt Oil Property at 330 million barrels that includes Discovered Contingent OIIP volumes of 36 million barrels and Undiscovered Prospective OIIP volumes of 294 million barrels (see press release from March 27, 2013 for details of the NSAI report).