Junex Starts Production Tests on Paspebiac #1 Well

Junex announces that the drilling of the Paspebiac #1 well reached a total depth of 1,800 meters. The well has encountered natural gas shows from 1,395 meters continuing all the way down to the final depth of the well. Moreover, oil indications have been observed in the Silurian sandstones from 1,630 meters.

A crew from the company Baker Oil Tools has been mobilized in order to perform some DST's which will provide Junex with a better evaluation of the production capacity of the different porosity zones observed during the drilling and also recognized on the logs. These tests should be performed in the coming days.

Despite the presence of natural gas and oil shows observed on the cuttings, Junex has decided to stop the drilling at 1,800 meters because of the high deviation rate of the well and the technical problems which could have been caused by deepening the well.

"Considering the hydrocarbon indications met, we would have preferred to deepen the well down to at least 2,000 meters in order to see if an oil window was present but, despite these technical difficulties, we are very satisfied with the geological results of the well. We can already say that the presence of gas on a 400-meter thick layer added to a porosity visually observed and to the type of sediments encountered during the drilling are as many elements which seem to prove that the Baie-des-Chaleurs basin is a great prospect for the oil and gas. It now opens a new door for a more aggressive exploration program of a new sedimentary basin. On the other hand, the production test of the coming days will enable us to better evaluate the production capacity of the Paspebiac #1 well," explained Jean-Yves Lavoie, P.Eng., president of Junex.

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