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Message: NR Anticosti est oip 12.2 bboe not that should jump the sp
September 28, 2011 09:11 ET
Junex Discloses the Results of an Independent Evaluation of the Oil Potential of its Anticosti Island Acreage
QUEBEC CITY, QUEBEC--(Marketwire - Sept. 28, 2011) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce that Netherland, Sewell & Associates, Inc., ("NSAI"), an independent reservoir engineering firm based in Texas, 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. Junex holds 100% working interest in these five permits that total 233,275 acres in size.
|Total Undiscovered Shale OIIP|
|(Millions of Barrels)|
|Low Estimate (P90)||Best Estimate (P50)||High Estimate (P10)|
Mr. Jean-Yves Lavoie, P. Eng., Junex's President and Chief Executive Officer, commented, "As we announced a few weeks ago, exploration of our portfolio of oil properties, of which our Anticosti acreage is part, will be Junex's focus for the next few years. We are very encouraged by NSAI's recent Best Estimate of 12.2 billion barrels of undiscovered Macasty Shale oil initially-in-place as it further illustrates the potential of our Anticosti land holdings. To place this figure in perspective, when comparing the Best Estimates of the OIIP and net acreage for Junex with those announced by neighboring permit holders Corridor and Petrolia, we calculate that Junex has about 2.4 times the amount of OIIP on an average net acreage basis."
Junex's permits are located on the downthrown side of the Jupiter Fault where the Macasty Shale is in the deeper part of the basin and that Junex defines as being the Deep Macasty Fairway. The Macasty is the stratigraphic equivalent of the Utica Shale in the St. Lawrence Lowlands. Download here the map of Anticosti permits: http://media3.marketwire.com/docs/Junex_Projet_Anticosti.pdf.
Because of the limited information available, these resource estimates 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 are estimated from data available, as of September 1, 2011, but the data are 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 purpose of this assessment lies uniquely in its ability in determining the oil potential of Junex's properties and the relevance of investing further exploration capital expenditures. Oil exploration on the Anticosti Island is still in its preliminary stage and further exploration work will be required in order to determine the actual commercial potential of the resource.
Results from the NSAI Report
NSAI, a world renowned independent reservoir engineering firm, was commissioned by Junex to conduct a resource assessment ("the Report") of the undiscovered petroleum initially-in-place (OIIP) to Junex's interest in the Macasty Shale on its acreage on Anticosti Island in Quebec. Using their expertise in evaluating other shale resource plays, NSAI 's evaluation includes detailed analysis of well data including a review of the core & lab analysis data, as well as 2D seismic data & mapping. All results have been prepared in accordance with the regulations pursuant to National Instrument 51-101, Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators.
No quantitative geologic risk assessment was conducted by NSAI for this acreage. Geologic risking of resources addresses the probability of success for the discovery of petroleum volumes and without regard to the chance of development; this risk analysis is conducted independently of probabilistic estimates of petroleum volumes and without regard to the chance of development. Principal risk elements of the petroleum system include (1) trap and seal characteristics; (2) reservoir presence and quality; (3) source rock capacity, quality, and maturity; and (4) timing, migration, and preservation of petroleum in relation to trap and seal formation.
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.
The effective date of the Report is September 1, 2011.
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. As of June 30, 2010, Junex has a working capital of more than 17 million dollars. In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations.
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