All technical data are currently being analyzed and Junex foresees contracting an independent firm to perform a production test in the near future.
"The Champlain No. 1 well results are very encouraging in that we are progressing in our search for a "gas cap", which, as recommended by Geostock in its pre-feasibility study, could be the cornerstone to development of a subsurface natural gas storage facility. The results from the production test will allow us to determine future operations for our subsurface natural gas storage project in the Becancour geologic horizon." commented Jean-Yves Lavoie, the President of Junex.
The Champlain No. 1 well was drilled on an anomaly identified on data acquired during a seismic survey in 2005. This type of anomaly correspond to a natural brine productive reservoir zone previously encountered on the Becancour bloc located at 3 km from the Champlain No.1 well.
Becancour No.8 Well
Junex has also completed the drilling of the Becancour No.8 well down to a total depth of 1,048 meters. This well encountered faint natural gas shows associated with the presence of brine. A production test is being performed to evaluate the productive capacity of the brine. Also, two cores, totaling 34.15 meters, were cut in the Utica Shale by Junex's American partner. Laboratory analysis of these core samples is currently underway in order to better understand the physical and chemical properties of the Utica and to establish its productive potential.
As a reminder, last July, Junex signed an exploration partnership agreement with one of the most important independent natural gas producers in the United States. The partnership's aim is to evaluate the natural gas potential of the Utica Shale, the first phase of which consisted of the coring of the Utica in the Becancour No.8 well. Following its receipt of the core analysis results, the American partner has six months to decide if it will exercise its option to proceed with an $8 million pilot project in order to better evaluate the productive capacity of the Utica Shale.
Junex holds exploration rights in more than 4 million acres of land in the Appalachian basin in the province of Québec. Recent major discoveries in the United States and Eastern Canada have stimulated exploration in Québec, which is located in a geological setting favourable for oil and gas discovery. Junex's strategy is to reduce exploration risks by entering into partnerships with other exploration companies. Parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations. Junex also holds approximately a 12% interest in Petrolia (PEA : TSXV) and an 8% interest in Gastem.
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