QUEBEC CITY, QUEBEC--(Marketwired - Dec. 5, 2016) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce an oil discovery in a well recently drilled with partners on its properties in the Permian Basin in Schleicher County, West Texas. During clean-up and swabbing operations following drilling, the well flowed at rates up to approximately 50 barrels of oil per hour over a 3 to 4 hour period out of the Strawn Lime interval. A pump was then installed and the well was tested at an average rate of approximately 32 barrels of oil per day over an 18 day period. Testing continues in the well.
Having been active in this area since 2012, Junex owns an interest of 25% in this well and in the surrounding/neighboring acreage totalling approximately 2,219 gross acres.
This well, known as the Thornburg #11 well, was drilled to evaluate the Pennsylvanian-aged McKavitt (Canyon) Sandstone oil reservoirs and the deeper Strawn Lime in the Camar Field in Schleicher County. The interval currently being tested is the Strawn Lime interval. The McKavitt Sandstone intervals have not yet been tested in this well.
"We are quite pleased with this well that is a continuation of successes that we've achieved over recent years. These successes result from identifying prospective opportunities, some of which were underestimated by others, then acting on them using modern exploration and production methodologies. This latest result demonstrates the oil potential of the Strawn Lime on our some of our properties in Texas. The Strawn Lime is recognized as being a prolific oil and gas producing formation in the Permian Basin. In addition, well logs and drilling data indicate that the shallower McKavitt Sandstone intervals in the well are oil-bearing, which would be produced initially through primary oil production and, ultimately, these could be produced using enhanced secondary oil recovery methods designed to harvest additional oil from these reservoirs," said Mr. Peter Dorrins, Junex's President & CEO.
Mr. Dorrins continued: "The majority of our oil and gas portfolio is in Quebec where our current main focus is the Galt Oil Project. For some time we've also been targeting other jurisdictions where the pace of oil and gas project development is much faster than currently is the case in Quebec. This is part of our strategy of geographic diversification of our projects and investments."