Junex Cites 48.34 Tcf in Place at St. Lawrence Lowlands
Junex announced that Netherland, Sewell & Associates has provided their Best Estimate of the Undiscovered original gas in place resources volumes for the Utica Shale for most of Junex's permits in the St. Lawrence Lowlands at 48.34 Trillion Cubic Feet. This 48.34 TCF figure includes 39.67 TCF of Undiscovered OGIP resources volumes from the NSAI report dated April 16, 2010 and an additional 8.67 TCF Undiscovered OGIP Resources volumes for the Nicolet Permit from a previous NSAI report as announced by Junex on February 9, 2010 (the "Nicolet Permit").
When combined with Junex's company gross unrisked prospective resources for the Nicolet Permit, the combined company gross unrisked prospective resources ranges from a Low Estimate of 1.23 TCF (effective 4% recovery factor) to a High Estimate of 10.98 TCF (effective 25% recovery factor), with a Best Estimate of 3.69 TCF (effective 10% recovery factor) to Junex's net interest in its St. Lawrence Lowlands permits. Company gross unrisked prospective resources means Junex's share of the unrisked prospective resources before any Government royalties.
The two NSAI evaluations, when combined, evaluated 632,189 gross acres (approximately 59%) of the total of 1,064,696 gross acres held by Junex in the Utica Shale play in the St. Lawrence Lowlands. The unevaluated portions represent areas where NSAI indicated that further evaluation and additional data are required to quantify their gas-in-place volumes and prospective resource estimates.
Mr. Jean-Yves Lavoie, Junex's President and Chief Executive Officer, commented, "We consider NSAI's "Best Estimate" of 3.7 TCF for Junex's potentially recoverable Net Prospective Resources to be very significant for our company. NSAI's independent evaluation is an important milestone for the Company since it is the first time that the Utica Shale Gas potential of most of our extensive Utica Shale acreage has been independently estimated. Junex's potentially recoverable Net Prospective Resources compare favourably with published estimates from other significant permit holders in the Lowlands Utica Shale Gas play and it also offers some more room for growth since other large Junex-held permits, including St-Simon and Beaupre/Orleans, were not evaluated due to a lack of scientific data."