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Message: Neighbor's news - JUNEX 3.7 TCF recoverable

Neighbor's news - JUNEX 3.7 TCF recoverable

posted on Apr 19, 2010 11:19AM

JunexAnnounces Undiscovered Gas-in-Place Resources Volumes of 48 TCF andPotentially Recoverable Prospective Gas Resources of 3.7 TCF on its St.Lawrence Lowlands Permits

Press ReleaseSource: Junex inc.On Monday April 19, 2010, 11:11 am

QUEBEC CITY, QUEBEC--(Marketwire - April 19, 2010) - Junex Inc. (TSX VENTURE:JNX - News;"Junex" or the "Company") is pleased to announce that Netherland,Sewell & Associates, Inc., ("NSAI"), an independent petroleumconsulting firm based in Texas, has provided their "Best Estimate" ofthe Undiscovered original gas in place resources ("OGIP") volumes forthe Utica Shale for most of Junex's permits in the St. LawrenceLowlands at 48.34 Trillion Cubic Feet ("TCF"). This 48.34 TCF figureincludes 39.67 TCF of Undiscovered OGIP resources volumes from the NSAIreport dated April 16, 2010 and an additional 8.67 TCF UndiscoveredOGIP Resources volumes for the Nicolet Permit from a previous NSAIreport as announced by Junex on February 9, 2010 (the "Nicolet Permit").

Total Undiscovered OGIP (Bcf)
100% Undiscovered original gas-in-place Low Best High
(OGIP) volumes Estimate Estimate Estimate

Lowlands Permits (without Nicolet 31,815 39,673 49,405
Nicolet Permit (as previously reported) 6,954 8,666 10,523
Total 38,769 48,339 59,928

Whencombined with Junex's company gross unrisked prospective resources forthe Nicolet Permit, the combined company gross unrisked prospectiveresources ranges from a Low Estimate of 1.23 TCF (effective 4% recoveryfactor) to a High Estimate of 10.98 TCF (effective 25% recoveryfactor), with a Best Estimate of 3.69 TCF (effective 10% recoveryfactor) to Junex's net interest in its St. Lawrence Lowlands permits.Company gross unrisked prospective resources means Junex's share of theunrisked prospective resources before any Government royalties.

Junex's Company Gross(i) (Bcf)
Potentially Recoverable Unrisked Low Best High
Prospective Gas Resources Estimate Estimate Estimate

Lowlands Permits (without Nicolet 1,087 3,255 9,676
Nicolet Permit (as previously reported) 147 436 1,307
Total 1,234 3,691 10,983

(i) Net to Junex before Government royalties.

Thetwo NSAI evaluations, when combined, evaluated 632,189 gross acres(approximately 59%) of the total of 1,064,696 gross acres held by Junexin the Utica Shale play in the St. Lawrence Lowlands. The unevaluatedportions represent areas where NSAI indicated that further evaluationand additional data are required to quantify their gas-in-place volumesand prospective resource estimates.

Mr. Jean-Yves Lavoie, P.Eng., Junex's President and Chief Executive Officer, commented, "Weconsider NSAI's "Best Estimate" of 3.7 TCF for Junex's potentiallyrecoverable Net Prospective Resources to be very significant for ourcompany. NSAI's independent evaluation is an important milestone forthe Company since it is the first time that the Utica Shale Gaspotential of most of our extensive Utica Shale acreage has beenindependently estimated. Junex's potentially recoverable NetProspective Resources compare favourably with published estimates fromother significant permit holders in the Lowlands Utica Shale Gas playand it also offers some more room for growth since other largeJunex-held permits, including St-Simon and Beaupre/Orleans, were notevaluated due to a lack of scientific data."

Results from the NSAI Report

NSAI,a world renowned independent petroleum consulting firm was commissionedby Junex to complete a resources assessment ("the Report") of the UticaShale on Junex's St. Lawrence Lowlands permits as a follow-up to theresources assessment that NSAI completed on the Nicolet Permit earlierthis year. Using their expertise in evaluating other shale gas plays,NSAI's evaluation includes detailed petrophysical and geologic analysisincluding a review of the available core and lab analysis data. Allresults have been prepared in accordance with the regulations pursuantto National Instrument 51-101, Standards for Disclosure for Oil and GasActivities of the Canadian Securities Administrators. The evaluationdoes not include any evaluation of the shallower Lorraine Formation onJunex's St. Lawrence Lowlands permits.

This latest NSAIevaluation focused on the Company's St. Lawrence Lowlands permits(excluding the Nicolet Permit) and their Utica Shale potential,subdividing these into two tiers:

-- The Medium-Deep Tier resources area on the downthrown side of the
Yamaska Fault where the Utica is at a depth generally greater than 700
meters; and

-- The Shallow Tier resources area on the upthrown side of the Yamaska
Fault where the Utica is at a depth generally less than 700 meters.

-- Undiscovered OGIP resources volumes for the two tiers range from a Low
Estimate of 31.82 TCF to a High Estimate of 49.41 TCF, with a Best
Estimate of 39.67 TCF for the 100% interest.

-- When combined with the Undiscovered OGIP resources volumes for the
Nicolet Permit, the combined Undiscovered OGIP resources volumes range
from a Low Estimate of 38.77 TCF to a High Estimate of 59.93 TCF, with a
Best Estimate of 48.34 TCF for the 100% interest.

-- Junex's company gross unrisked prospective resources for the two tiers
range from a Low Estimate of 1.23 TCF to a High Estimate of 10.98 TCF,
with a Best Estimate of 3.69 TCF to Junex's net interest in the permits.

OGIPis not a defined term within National Instrument 51-101 and isconsidered equivalent to Petroleum Initially In Place ("PIIP").Undiscovered resources are those quantities of petroleum estimated on agiven date to be contained in accumulations yet to be discovered.Prospective resources are those quantities of petroleum estimated on agiven date to be potentially recoverable from undiscoveredaccumulations. If discovered, they would be technically andeconomically viable to recover by application of future developmentprojects. Prospective resources have both a chance of discovery and achance of development. There is no certainty that any portion of theresources will be discovered. If discovered, there is no certainty thatthe resources will be commercially viable or be able to produce anyportion of the resources. The effective date of the Report is December31, 2009.

No quantitative geologic risk assessment was conductedby NSAI for this acreage. Geologic risking of prospective resourcesaddress the probability of success for the discovery of petroleum thisrisk analysis is conducted independently of probabilistic estimates ofpetroleum volumes and without regard to the chance of development.Principal risk elements of the petroleum system include; i. trap andseal characteristics; ii. reservoir presence and quality; iii. sourcerock capacity, quality, and maturity; and iv. timing, migration, andpreservation of petroleum in relation to trap and seal formation.

Theprospective resources discussed and shown in the Report are thoseundiscovered, highly speculative resources estimated beyond reserves orcontingent resources where geological and geophysical data suggest thepotential for discovery of petroleum but where the level of proof isinsufficient for classification as reserves or contingent resources.The unrisked prospective resources are those volumes that couldreasonably be expected to be recovered in the event of the successfulexploration and development of Junex's St. Lawrence Lowlands permits.

Theresources evaluated in the Report are based on estimates of reservoirvolumes and recovery efficiencies along with analogy to properties withsimilar geologic and reservoir characteristics. It will be necessary torevise these estimates as additional data become available. Also,estimates of resources may increase or decrease as a result of futureoperations.

Junex holds more than 1.5 million gross acres ofpermit in the St. Lawrence Lowlands. Junex's permits are located in allareas of the Utica play, including the shallow, medium, deep, andstructured parts of the Basin.

About Junex

Junex is ajunior oil and gas exploration company that holds exploration rights onmore than 6 million acres of land located in the Appalachian basin inthe Province of Quebec. The company is in the heart of the Utica Shalegas discovery located in the St. Lawrence Lowlands. As of December 31,2009, Junex has a working capital of approximately 22.5 milliondollars. Junex also owns approximately 7.9% of the issued andoutstanding shares of Petrolia (TSX VENTURE:PEA - News) and 1.0% of the issued and outstanding shares of Gastem (TSX VENTURE:GMR - News).In parallel to its exploration efforts, Junex's goal is to achievepositive cash flows from its natural brine and drilling servicesoperations.

Forward looking statements

This news releasecontains certain forward-looking statements. These statements relate tofuture events or future economic performance of Junex and carry risks,uncertainties and other factors - both known and unknown - that mayappreciably affect their respective results, economic performance oraccomplishments when considered in light of the content or implicationsof statements made by Junex. Actual events or results could besignificantly different. Accordingly, investors should not place unduereliance on forward-looking statements. Junex do not intend andundertake no obligation, to update these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.


Mr. Jean-Yves Lavoie
Junex Inc.

Mr. Dave Pepin
Junex Inc.
Vice President - Corporate Affairs
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