These data indicate that a rapid pressure build-up has occurred since pumping the 2,017 barrels of light, sweet oil during the production test in the Galt No. 4 Horizontal well. In addition, the oil level in the well is stable. It is Junex’s opinion that these are indicative of an oil reservoir with very good reservoir characteristics.
In light of these new technical data, Junex will resume its production testing operations in its Galt No. 4 Horizontal well in the upcoming days once it reconfigures the surface pumping equipment with the aim to pump oil at a higher rate than 161 barrels of oil per day ("BOPD") previously recorded (see press release from January 27, 2015). Also, the well will be pumped for a longer period of up to 1 1/2 months in order to produce a larger volume from the Forillon reservoir surrounding the wellbore such that a better understanding as to the reservoir characteristics should be obtained for future optimal development of the oil accumulation.
"This milestone well has performed better than our expectations and this has stimulated us to significantly modify our production testing program. Because of the positive pressure response and the stability of the oil level, we have curtailed the original 12 week period of well shut-in and instead we will endeavor to pump the well at a higher rate over a much longer test period, then shut-in the well over the period of spring break-up to record the pressure build-up on the downhole gauges already in the well. Once spring break-up is over, we will retrieve these gauges then the recorded data will be analyzed." commented Mr. Peter Dorrins, Junex’s President & Chief Executive Officer.
Junex holds a 70% interest in the Galt Oil Property, with Junex’s partner, Mr. Bernard Lemaire, holding the remaining 30% interest. Junex holds 100% interest in the adjacent acreage. The adjacent 100% Junex acreage has not yet been independently evaluated for its resource potential. These landholdings are situated approximately 20 kilometers from the town of Gaspé in eastern Quebec.
Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, has previously established their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources for the Forillon and Indian Point formations on the Galt Oil Property at 330 million barrels that includes Discovered Contingent OIIP volumes of 36 million barrels and Undiscovered Prospective OIIP volumes of 294 million barrels (see press release from March 27, 2013 for details of the NSAI report).
