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Message: NR oil reserves Galt 260mb
October 24, 2011 08:15 ET
Junex Announces an Increase of the Total Oil-Initially-in-Place Resources to 260 Million Barrels on Its Galt Property, Quebec, Canada
QUEBEC CITY, QUEBEC--(Marketwire - Oct. 24, 2011) - Junex Inc. (TSX VENTURE:JNX)("Junex" or the "Company") is pleased to announce that Netherland, Sewell & Associates, Inc., ("NSAI"), worldwide petroleum consultants based in Texas, has provided an update of their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources at 260.2 million barrels for the Forillon Formation on Junex's Galt Field property. This 260.2 million barrel figure includes Discovered Contingent OIIP volumes of 26.3 million barrels and Undiscovered Prospective OOIP volumes of 233.9 million barrels as tabulated below.
|Gross (100 Percent) OIIP|
|(Thousands of Barrels)|
|Oil-Initially-In-Place (OIIP) Volumes||Low Estimate||Best Estimate||High Estimate|
NSAI's updated Best Estimate of Junex's net share of the total unrisked Recoverable Oil Resource Volume on its Galt Field property is 19.5 million barrels (15% recovery factor), that includes 0.19 million barrels of Recoverable Contingent Oil Resources and 19.3 million barrels of Recoverable unrisked Prospective Oil Resources as tabulated below.
|Junex's Company Portion (50%)|
|(Thousands of Barrels)|
|Recoverable Oil Resource Volumes||Low Estimate||Best Estimate||High Estimate|
|Contingent Recovery Factor||1%||2%||2%|
|Prospective Recovery Factor||3%||15%||26%|
Mr. Jean-Yves Lavoie, Junex's Chief Executive Officer, commented : "NSAI's updated evaluation considered new data from detailed geochemical analysis of samples collected from the Forillon Formation at Galt that were not available at the time of their previous evaluation as disclosed in our press release from June 22nd 2010. These updated estimates represent an increase of about 40%, further strengthening our resolve to advance in the project. We have obtained a drilling permit for an exploration well that we intend to start drilling in the spring of 2012."
Junex controls a 50% working interest in the 16,645 acre-sized Galt 1 property on the Gaspe Peninsula and it also controls a 100% working interest in the 36,816 acre-sized Galt 2 property surrounding the first permit.
Results from the NSAI Report
NSAI, a world renowned petroleum consulting firm was commissioned by Junex to conduct a resource assessment ("the Report") of the original oil-in-place (OOIP) and recoverable contingent and unrisked prospective oil resources to Junex's interest in the Forillon Formation for its acreage in Galt Field in the Gaspé Peninsula in Quebec. Using their expertise in evaluating other fractured reservoirs, NSAI 's evaluation includes detailed petrophysical analysis of the available well data including a review of the available core & lab analysis data and 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.
Discovered resources oil-initially-in-place (OIIP) volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in known accumulations prior to production.
Contingent resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations but for which the applied project or projects are not yet considered mature enough for commercial development because of one or more contingencies.
The contingent resources estimated in the Report are contingent upon (1) the application of modern drilling and completion technology to establish significantly higher wellbore productivity (2) demonstration of the economic viability of project development, and (3) activity prior to expiration of the leases.
Undiscovered resources OIIP volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in accumulations yet to be discovered.
Prospective resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Unrisked prospective resources are estimated ranges of recoverable oil volumes assuming a petroleum discovery is made and are based on estimated ranges of undiscovered in-place volumes. If discovered, there is no certainty that the resources will be commercially viable or be able to produce any portion of the prospective resources.
No quantitative geologic risk assessment was conducted by NSAI for this acreage. Geologic risking of prospective 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 resources evaluated in the Report were 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 range and number of parameters rely on the available direct and analog data from similar reservoirs in a more mature development stage. It will be necessary to revise these estimates as additional data become available. Also, estimates of resources may increase or decrease as a result of future operations.
The effective date of the Report is September 30,
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