Discoveries | Drilling Activity

Junex Preps to Drill at Galt Oil Property Near Discovery

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Junex Inc. is finalizing construction of the surface drilling pad for the Junex Galt No. 5 Horizontal well that the Company plans to start drilling in the second half of July.

This well is situated on the Company's Galt Oil Property where Netherland, Sewell & Associates, Inc., (NSAI), a firm of worldwide petroleum consultants based in Texas, recently 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 and where their Best Estimate of Junex's net share of the total Recoverable Oil Resource Volume is 55.7 million barrels of oil.

As previously announced, the Galt No. 5 Horizontal well is the first well of the next phase of operations on the Galt Oil Property that includes the drilling of the Galt No.5 Horizontal well, the completion of a detailed 3D seismic program, then the drilling of the Galt No. 6 and No. 7 Horizontal wells whose final locations will be determined from the 3D seismic data.

The Junex Galt No. 5 Horizontal well is planned to be drilled to a total measured depth of 2,500 meters, of which approximately 1,300 meters is to be horizontal drilled within the Forillon oil reservoir. Similar to Junex's Galt No. 4 Horizontal Oil Discovery well, the horizontal portion of the Galt No. 5 Horizontal well is designed to intersect the maximum number of open, near-vertical, natural fractures in the Forillon oil reservoir.

Mr. Peter Dorrins, Junex's President & Chief Executive Officer, stated: "With respect to our financing activities for this next phase of operations, we are confident to close the first tranche of this financing soon. With the closing of this first tranche in hand, we will then proceed with the rigging-up of Junex's Foragaz No. 4 drilling rig that will be used to drill the Galt No. 5 Horizontal well. We plan to start drilling this well in late July. In addition, further operations and production testing will be performed in our Galt No. 4 Horizontal Oil Discovery well."

Junex holds a 70% interest in the Galt Oil Property and it holds 100% interest in the adjacent acreage. 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.