Junex announced that, since the negotiations regarding the signature of a Farm-out agreement between Junex and Fairlady Energy have not yet been finalized, the parties have requested and obtained from the Quebec Superior Court the homologation of the Letter of Intent signed between the parties on May 21st 2008. This Letter of intent settled the litigation betweens the parties in regards to the Nicolet permit (see press release dated May 21, 2008).
In accordance with this Letter of Intent, Junex will earn a 50% interest in the interval from surface to the base of the Utica Formation Shale in the Nicolet permit by drilling two exploratory wells down to the base of the Utica Formation. Junex will core these two wells in order to evaluate the rock properties and the gas potential of the Shale. The Nicolet property covers 54,363 acres and is located in the heart of the St. Lawrence Lowlands Basin.
Notwithstanding the homologation of the LOI, the parties are still negotiating a Farm-out agreement in order to detail the terms of the LOI. Yesterday, Junex commenced drilling operations of its first exploratory well on the Nicolet property.
Junex is a junior oil and gas exploration company that holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the Province of Quebec.
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