Junex Plans Additional Exploration in Utica Shale Play

Junex announced drilling of two wells to evaluate the gas potential of the Utica Shale on its Lyster property (108,360 acres) located about 15 km from the St-Edouard No. 1A well.

Strategically located in terms of geology, this property, held 100% by Junex, is covered by more than 200 line-kilometers of seismic data. Two older stratigraphic wells drilled near the property allow for the forecasting of a thickness of about 1,000 meters for the Utica Shale on the property. Furthermore, its proximity to the St-Flavien gas field and the St-Edouard No. 1A well (IP of 12 mmcf/d according to Questerre Press Release issued on February 23, 2010) places this property in the top ranking of Junex's priorities for 2010.

The two wells planned to be drilled in 2010 have as a primary objective the coring and evaluation of the Utica in this overthrust zone. The secondary objective is the evaluation of the Trenton-Black-River whose top is forecast at depths of about 1,800 meters. The first well will spud after spring break-up.

"We have completed similar work on the Nicolet property during 2009. The Netherland, Sewell and Associates results were convincing about this subject (see Junex's Press Release from February 9, 2010). The Lyster property has an areal extent three and a half times larger and the thickness of the Utica could be greater. The axis extending from Nicolet-Becancour-Gentilly to St-Edouard-Lyster is situated in a favourable geologic environment and the results seen thus far in this area are compelling. Also, infrastructure already exists in this area (pipelines at Becancour, gas storage and compressors at St-Flavien, etc...), which lead us to believe that the first gas production in the Lowlands may start in this area", emphasized Mr. Jean-Yves lavoie', Junex's President and CEO.