QUEBEC CITY, QUEBEC--(Marketwire - Nov. 14, 2012) - Junex (News - Market indicators) is pleased to announce that it has received the processed data from its 224 line-kilometre sized 2D seismic survey that it acquired on its solely-held, 233,275 acre-sized block of exploration permits on Anticosti Island this past summer, where Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, had previously placed their Best Estimate of the undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on Junex's acreage at 12.2 billion barrels. 

This modern, high-quality seismic data clearly images structural and stratigraphic elements associated with the Macasty Shale ("Macasty") and deeper, conventional reservoir targets on Junex's acreage. Junex's interpretation of this data is well-advanced in that a number of prospective structures have been identified.

As Junex's interpretation efforts progress over the coming weeks, drilling locations for the top five prospects will be selected. Each of these prospect's primary objectives include conventional reservoirs in geological formations underlying the Macasty, including the Trenton / Black River and Romaine (Ellenburger-equivalent) carbonate sequences. The secondary objective is the overlying Macasty where the company intends to further evaluate its oil potential through a combination of coring, specialized core analysis and other analytical methods during and subsequent to the future drilling operations. 

The appropriate requests for drilling permits will be made to the relevant government authorities in preparation for the drilling of these five conventional vertical wells as early as the next drilling season during the summer of 2013.

Junex's Acreage Situated in the Deep Fairway of Anticosti Island

Geologically, Junex's acreage on Anticosti is principally situated to the south of and on the deeper side of the major Jupiter Fault Zone ("Jupiter Fault"). With respect to the Macasty, it is the stratigraphic equivalent of the Utica Shale in the St. Lawrence Lowlands and the oil-rich Utica/Point Pleasant Shale in Ohio. Junex's acreage is dominantly situated in the Deep Macasty Fairway, where, based on available information, the company's mapping interprets that the Macasty averages approximately 80 metres in thickness, which is approximately two times the thickness than that encountered in wells previously drilled by other operators to the north of the Jupiter Fault outside of the Deep Fairway. 

Junex's interpretation of pertinent geochemical lab data indicates that the organic-rich Macasty on its Deep Fairway acreage places it well within the Oil Window of thermal maturity, which compares much more favourably with published findings for the oil-rich Utica/Point Pleasant Shale in Ohio and the prolific Eagle Ford Shale in Texas than currently does the less thermally mature Macasty outside of the Deep Fairway. 

Based on its direct experience with the Utica Shale in the Saint Lawrence Lowlands at varying formation depths and more specifically with the oil it recovered from the Utica Shale in the Junex St-Augustin No. 1 well in 2009, Junex considers that the greater formation depth of the Macasty on its acreage in the Deep Fairway should translate into greater formation pressure (or reservoir energy) that could yield a greater oil production potential than the Macasty in shallower areas outside of the Deep Fairway. 

Furthermore, based on NSAI's Best Estimate, the Macasty on Junex's acreage has an average potential of 33.5 million barrels of OIIP per square mile ("bbls/sec"), which appears to be much superior than the average OIIP per square mile calculated for other areas of the island controlled by other operators (based on third party Best Estimates published by these operators). Junex considers that this aspect, combined with greater reservoir energy on its acreage in the Deep Fairway, substantially elevates the prospectivity of the Macasty on its acreage relative to areas outside the Deep Fairway.

With respect to the deeper conventional reservoirs including the Trenton / Black River and Romaine formations underlying the Macasty Shale, many wells were drilled by other operators over the past 15 years that specifically targeted these formations in areas north of the Jupiter Fault. Available well data and published results show that these wells drilled to the north of the Jupiter Fault thus far have not been commercially successful: where porous reservoir rock was encountered, formation water was dominantly present and only minor hydrocarbon shows were observed. In Junex's opinion, the Jupiter Fault could have acted as a sealing barrier to the migration of oil from mature source rocks on the south side of the Jupiter Fault into these geological sequences on the north side of the Jupiter Fault. It is on the basis of this geological concept and its recently-acquired seismic data that Junex intends to drill five new conventional vertical wells, on its acreage south of the Jupiter Fault, targeting primarily the Trenton / Black River and Romaine Formations.

About the NSAI Report

Details about the NSAI Report were previously announced by Junex in a press release on September 28, 2011 and it is recommended that the reader consult this press release for further information. The resource estimates in the report must be treated as scoping level estimates and used with caution. Undiscovered petroleum initially-in-place (OIIP) (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in accumulations yet to be discovered. The undiscovered shale OIIP volumes shown in the report were estimated from data available, as of September 1, 2011, but the data were insufficient in quality or quantity for these volumes to be classed as discovered. There is no certainty that any portion of the in-place volumes will be discovered.

The OIIP in the Report was determined from a range of possible values for multiple parameters. These parameters were limited to the critical driving factors for both statistical and practical reasons.

The probabilistic analysis performed by NSAI created cumulative probability distribution curves that defined a range of potential outcomes. As described in the Canadian Oil and Gas Evaluation Handbook (COGEH), the resulting probability distribution curves represent the low estimate, best estimate, and high estimate, which correspond to the P90, P50, and P10 probability estimates of hydrocarbon volumes, respectively. The probability that the quantities of oil actually in place will equal or exceed the estimated amounts is 90 percent for the low estimate, 50 percent for the best estimate, and 10 percent for the high estimate.

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 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 St. Lawrence Lowlands and holds a significant land-package on the Anticosti Island where an independent report has provided their Best Estimate of the undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on all five of Junex's permits on Anticosti Island at 12.2 billion barrels. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations.

Forward-Looking Statements and Disclaimer

Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to Junex at the time and involve known and unknown risks, uncertainties and other factors that may cause Junex's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Junex's business and activities appears under the heading "Risks and Uncertainties" on pages 8 to 11 of Junex's 2010 annual management's discussion and analysis, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Junex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Junex. Junex disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward-looking statements.