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Resource World - April-May 2015 - Vol 13 Iss 3

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56 www.resourceworld.com a p r i l / m a y 2 0 1 5 Junex Inc. [JNX-TSXV] has successfully completed its most recent phase of oil pro- duction testing in its Galt No.4 horizontal well located approximately 20 km from the town of Gaspé on the Gaspé Peninsula, far eastern Québec. This latest phase ran from February 26th to March 11th. The company deliberately set the production rate during this latest phase such that an average rate of 206 barrels of oil per day (BOPD) was maintained during the final 10 days of this period. Since the Galt No.4 well finished drill- ing, Junex recovered 7,200 barrels of light, sweet crude oil from combined production testing operations and well cleanup/swab- bing operations. Under the company's plan of opera- tion, the well is now shut-in such that the pressure build-up of the Forillon res- ervoir will be measured over the period of spring break-up. After this, the pressure gauges will be retrieved then the recorded data will be analyzed and interpreted by Junex's engineers and independent indus- try specialists. This pressure build-up data will provide valuable information as to the reservoir characteristics of the Forillon res- ervoir in the Galt No.4 well. "We are very pleased that our milestone well continues to deliver strong produc- tion rates. This significant oil discovery is not an end result in itself but it is the beginning of the next phase of opera- tions geared to further proving-up the Galt oil accumulation," said Peter Dorrins, President and CEO. "We now plan to move ahead with our delineation program that includes the drilling of the Galt No.5 horizontal well, followed by completion of a detailed 3D seismic program, then the drilling of the Galt No.6 and No.7 horizon- tal wells. We expect to spud the No.5 well by the beginning of the summer." More than 2,370 barrels of light, sweet crude oil was produced during this latest phase of production testing of Junex's oil discovery in the first horizontal oil explo- ration well ever drilled in Québec. No hydraulic fracturing of this conventional reservoir was performed in this well. This discovery well was horizontally drilled from the existing Galt No.4 verti- cal wellbore to a total measured depth of 2,400 metres, of which 1,503 metres was drilled within the oil reservoir. Numerous significant oil shows associated with frac- ture porosity recorded during drilling and results from down-hole well logging clearly indicate that the oil reservoir is intensely fractured and that the Galt No.4 horizontal well intersected the near-verti- cal natural fractures at an optimum angle of approximately 90 degrees, as forecast in the original well design. Junex holds a 70% interest in the Galt oil property, with partner, Bernard Lemaire, holding the remaining 30% interest. Netherland, sewell & Associates, Inc., (NSAI), worldwide petroleum con- sultants 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 the Galt oil property at 330 million bar- rels that includes Discovered Contingent OIIP volumes of 36 million barrels and Undiscovered Prospective OIIP volumes of 294 million barrels. Junex also holds 100% interest in the adjacent acreage. The adjacent 100% Junex acreage has not yet been indepen- dently evaluated for its resource potential. These landholdings are situated approxi- mately 20 km from the town of Gaspé. Junex holds exploration rights on some 5.2 million acres in the Appalachian Basin in Québec. The company is in the heart of the Utica Shale gas discovery located in the St. Lawrence Lowlands. In addition, Junex holds a significant land-package of 944 km 2 on Anticosti Island in the Gulf of St. Lawrence where an independent report has provided their Best Estimate of the undiscovered shale OIIP volume for the Macasty Shale on all five of Junex's permits at 12.2 billion barrels. Junex also operates a drilling services division. n Junex's Galt No. 4 well yielding 206 barrels of oil per day OIL & G a s

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