Junex Inc. (CDNX:JNX.V - News) is pleased to announce that its US based partner, a major independent gas producer, has decided to exercise its option to enter into a US $8 million pilot-project in order to evaluate the Utica shale section on 143,395 acres of permits wholly owned by Junex and located in the area of Becancour, between Quebec City and Montreal.
"This is an important milestone for Junex since it will be the first ever pilot-project to test the potential productivity of the Utica shale formation we have in the Province. Significant developments have occurred in the recent years in regards to the production of natural gas from the shale south of the border. We believe that this trend is moving to the North and Junex, with exploration permits covering more than 1 million acres of prospective lands in the Ste. Lawrence Lowland Basin, is extremely well positioned to take advantage of the enthusiasm generated by the shale gas projects in the North American gas industry. We are proud to rely on a solid partner with renowned expertise in the development of unconventional gas plays who has now indicated that it wishes to go ahead with this project. The land covered by this this deal represents approximately 15% of the total acreage we hold in the Ste. Lawrence Lowlands and we strongly believe that any success of a pilot-project in the Utica shale in Becancour would greatly increase the value of our other properties" commented Mr. Jean-Yves Lavoie, P. Eng. CEO of Junex.
In July 2006, Junex signed an agreement with one of the most important independent natural gas producers in the United States for the development of shale gas in the Becancour/Champlain region. The agreement specifically targeted the evaluation of the gas potential of the Utica shale section on four blocks of permits covering 143,395 acres located between Quebec-City and Montreal, which are entirely held by Junex. Pursuant to this agreement, Junex's partner analysed a total of 34.15 meters of Utica shale coring cut from the Becancour #8 well drilled by Junex. The cores were laboratory tested in order to better understand the physical and chemical properties of the sedimentary layer of the Utica shale and to evaluate their productivity potential. Based on the results of this analysis, its partner advised Junex today that it would go forward with the pilot-project. The first step of this project consists of performing a frac job on the Becancour #8 well. This frac job is scheduled for next July.
Source : biz.yahoo.com
No comments:
Post a Comment