Junex Spudded the Paspebiac #1 Located at 1,500 Meters Depth

Junex has recently spudded the well Paspebiac #1, located at 12 kilometers from Paspebiac in Gaspesie, Eastern Canada. A 12 1/4 inches surface hole was drilled to a depth of 220 meters and a 95/8 inches casing was cemented with the rig Barber #1 owned by Junex. This rig was released two weeks ago after having drilled through a depth of 431 meters. The hole will be completed to the total target depth of 1,500 meters with the other rig (U-34 #2) owned by Junex. This rig is already on site and the well has currently reached a depth of 685 meters. Junex expects this well to be completed by the end of September.

"The geological structure of Paspebiac is the biggest ever drilled in Junex's history. We have been working on this project for the last three years, notably in connection with the Geological Survey of Canada, and we are very excited about this first wildcat well to be drilled in the region. Junex has invested more than 2 million dollars in the course of the last years in order to acquire approximately 200 kilometers of seismic data. Those investments have allowed us to identify a dozen geological structures favorable for hydrocarbon accumulation. Among them the Paspebiac dome is certainly a high risk project but it bears a world class potential" commented Mr. Jean-Yves Lavoie, P. Eng., CEO of Junex.

The Paspebiac #1 well is the first to be drilled on the 1 million acres block of permits held by Junex (100%) in the area of Baie-des-Chaleurs. This well is being drilled on a large dome structure of nearly 30 km2 of horizontal closure and of 300 meters of vertical closure. The well is targeting a seismic anomaly at the level of the Silurian limestones at a depth of 1,500 meters.