Netherland, Sewell & Associates, Inc., a firm of worldwide petroleum consultants based in Texas, provided an update of their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources at 557 million barrels for the Forillon and Indian Point formations on Junex's Galt Field property on the Gaspe Peninsula.This represents a 227 million barrel increase (69%) with respect to NSAI's previous Best Estimate of the total OIIP resources as outlined in a press release made by Junex on March 27, 2013.
NSAI's evaluation considers new information from the Junex Galt No. 4 Horizontal oil discovery well drilled in late 2014, including, but not limited to, data from subsequent oil production testing that yielded a total of 7,200 barrels of light, sweet oil at rates varying up to more than 300 barrels of oil per day.
This 557 million barrel figure includes Discovered OIIP volumes of 81 million barrels and Undiscovered OIIP volumes of 476 million barrels in the combined Forillon and Indian Point formations, of which Junex's net share of the total OIIP resources is 390 million barrels that includes Discovered OIIP volumes of 57 million barrels and Undiscovered OIIP volumes of 333 million barrels.
NSAI's updated Best Estimate of the total Recoverable Oil Resource Volume on the Galt Oil Field property includes 23,000 barrels of Proved plus Probable Reserves, 8.1 million barrels of Recoverable Unrisked Contingent Oil Resources and 71.4 million barrels of Recoverable Unrisked Prospective Oil Resources, of which Junex's net share of the total Potentially Recoverable Oil Resource Volume includes 16,000 barrels of Proved plus Probable Reserves, 5.7 million barrels of Recoverable Unrisked Contingent Oil Resources and 50 million barrels of Recoverable Unrisked Prospective Oil Resources.
Peter Dorrins, Junex's President & Chief Executive Officer, stated, "In looking at these numbers, the positive impact of our successful Galt No. 4 Horizontal well can be clearly seen.The Discovered OIIP volumes have more than doubled to 80.8 million barrels and Junex's share of the potentially recoverable Contingent Resources portion of these has increased by approximately 1500% to 5.7 million barrels.These are a direct result of an increase in size of the area where Discovered sub-commercial Contingent Resources have been established as well as increased certainty as to the oil recovery factor and other oil characteristics."
Dorrins continued, "In addition, an enlargement of the size of the prospective area within the Galt Oil Property has contributed to the increase in the total OIIP resources to 557 million barrels, of which Junex's net share of the recoverable oil volume has increased by 81% to 55.7 million barrels.As previously announced, we have completed our financing activities and we have started drilling the Galt No.5 Horizontal well.Similarly we have started a detailed 3D seismic program and then we intend to drill the Galt No. 6 and No. 7 Horizontal wells whose final locations will be determined from the 3D seismic data.Also, further oil production testing of our Galt No. 4 Horizontal well is planned."
In the above two quotes, Junex refers to certain increases in resource volumes relative to the last evaluation completed by NSAI that was announced by Junex in a press release on March 27, 2013, and it is recommended that the reader also consult this press release for comparative purposes.
Junex holds 100% interest in the acreage adjacent to the Galt Oil Property. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential.These properties are situated approximately 20 kilometers west of the town of Gaspé in eastern Quebec.
Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land in the Appalachian basin in the Province of Quebec, including the Galt Oil Property on the Gaspé Peninsula in eastern Quebec, landholdings on Anticosti Island in the Gulf of St. Lawrence and landholdings in the St. Lawrence Lowlands between Montreal and Quebec City. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, the company operates a drilling services division.