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 October 29, 2015 - 8:45 AM EDT
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Junex Comments on the Anticosti Economic Assessment Released by the Quebec Government

QUEBEC CITY, QUEBEC--(Marketwired - Oct. 29, 2015) - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") views the conclusions of the Economic Assessment Evaluation disclosed this morning by the Quebec Ministry of Energy and Natural Resources regarding the Macasty Shale on Anticosti Island as being favorable. This analysis is part of a number of Studies yesterday in the context of the Strategic Environmental Assessment ( " SEA ") currently in progress on the oil and gas exploration on Anticosti project.

According to this Study, the production of hydrocarbons on Anticosti Island could provide potential benefits "estimated at between $ 46 billion and 48 billion to the Quebec government over 75 years of operation, including the profits attributable to its direct and indirect stake in companies holding exploration licenses as well as royalties and revenues related to taxes on corporate income. "

More specifically, the project would, according to the study, have the following economic benefits:

- An annual contribution to Quebec's GDP of about $ 2 billion, or more than 0.4% of GDP Early in 2020;

- The creation or maintenance of over 2,000 jobs per year on average;

- Direct and indirect tax and financial benefits to the government of Quebec of at least $ 650 million per year on average.

In general, the study is consistent with Junex's opinion about the potential economic viability of the oil and liquid hydrocarbon-rich Macasty Shale in the Deep Fairway on Anticosti, whose commerciality, Junex believes, would be best achieved in the deeper part of the Deep Fairway where Junex's landholdings are located. Notably because the deeper portion of the Deep Fairway should have greater reservoir pressure (or reservoir energy) in the Macasty Shale than in all shallower areas on the island, which could translate into greater production volumes on Junex's landholdings.

The Economic Study can be consulted at :

Junex's position on Anticosti Island

Junex's 100%-held block of exploration permits on Anticosti Island covers an area of 233,275 acres (364 square miles or 944 square kilometers). In 2011, Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas, provided their Best Estimate of the Undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on Junex's Anticosti Island permits at 12.2 billion barrels (see Junex's press release from September 28, 2011 for more details).

"Our opinion about the oil and liquids-rich potential of our acreage in the deeper part of the Deep Fairway is based on our extensive experience in the oil and liquids-rich belt in the Quebec Lowlands Utica Shale, on analysis of publicly-available data on Anticosti and on comparison to producing shale plays in the United States. We have extensively sampled existing wells on the island and have applied leading-edge technologies to establish the level of thermal maturity of the Macasty Shale over the entire island. Oil shows recorded in deeper formations than the Macasty in an existing well located on the deepest part of our acreage further indicate that our acreage is well situated for oil/liquid hydrocarbon potential. These are also consistent with positive results in the oil and liquids-rich Utica Shale in Ohio." said Mr. Peter Dorrins, Junex's President & Chief Executive Officer.

During 2014 and 2015, Hydrocarbures Anticosti SEC drilled a number of stratigraphic coreholes, many of which were situated in deeper portions of their landholdings near Junex's acreage.

Mr. Dorrins added: "We view our neighbors' drilling of many of their stratigraphic coreholes near our acreage as further recognition of the importance of being situated in deeper portions of the Deep Fairway. Considering all of these pointers, we are hopeful that they will locate their three horizontal wells planned for 2016 in the deepest part of their permits. Successful drilling and fracture stimulation of these three wells with positive results should add value to our acreage without the need for us to invest any capital or dilute our 100% interest in our properties."

Junex also announces that it elected not to implement the shareholder rights plan announced on September 26, 2014, which is therefore no longer in effect.

Results from the NSAI Report

NSAI, a world renowned independent reservoir engineering firm, was commissioned by Junex to conduct a resource assessment ("the Report") of the undiscovered petroleum initially-in-place (OIIP) to Junex's interest in the Macasty Shale on its acreage on Anticosti Island in Quebec. Using their expertise in evaluating other shale resource plays, NSAI 's evaluation includes detailed analysis of well data including a review of the core & lab analysis data, as well as 2D seismic data & mapping. All results have been prepared in accordance with the regulations pursuant to National Instrument 51-101, Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators.

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, and are classified according to their degree of certainty associated with the estimates.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

Probable Reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

Discovered resources oil-initially-in-place (OIIP) volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in known accumulations prior to production. 

Contingent resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations but for which the applied project or projects are not yet considered mature enough for commercial development because of one or more contingencies. 

There is uncertainty that it will be commercially viable to produce any portion of the sub-commercial discovered resources, if ascribed.

Undiscovered resources OIIP volumes are those quantities of petroleum that are estimated, as of a given date, to be contained in accumulations yet to be discovered. 

Prospective resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Unrisked prospective resources are estimated ranges of recoverable oil volumes assuming a petroleum discovery is made and are based on estimated ranges of undiscovered in-place volumes. 

There is no certainty that any portion of the undiscovered resources will be discovered, and, if discovered, there is no certainty that it will be commercially viable to produce any portion of this category of resources.

Reserves, contingent resources, and prospective resources should not be combined without recognition of the significant differences in the criteria associated with their classification. However, in some instances (e.g., basin potential studies) it may be desirable to refer to certain subsets of total OIIP. For such purposes the term "resources" should include clarifying adjectives "remaining" and "recoverable," as appropriate. For example, the sum of reserves, contingent and prospective resources estimates involve additional risks, specifically the risk of not achieving commerciality and exploration risk, respectively, not applicable to reserves estimates. Therefore, when resources categories are combined, it is important that each component of the summation also be provided, and it should be made clear whether and how the components in the summation were adjusted for risk.

No quantitative geologic risk assessment was conducted by NSAI for this acreage. Geologic risking of prospective resources addresses the probability of success for the discovery of petroleum volumes and without regard to the chance of development; this risk analysis is conducted independently of probabilistic estimates of petroleum volumes and without regard to the chance of development. Principal risk elements of the petroleum system include (1) trap and seal characteristics; (2) reservoir presence and quality; (3) source rock capacity, quality, and maturity; and (4) timing, migration, and preservation of petroleum in relation to trap and seal formation.

The resources evaluated in the Report were determined from a range of possible values for multiple parameters. These parameters were limited to the critical driving factors for both statistical and practical reasons. The range and number of parameters rely on the available direct and analog data from similar reservoirs in a more mature development stage. It will be necessary to revise these estimates as additional data become available. Also, estimates of resources may increase or decrease as a result of future operations.

The probabilistic analysis performed by NSAI created cumulative probability distribution curves that defined a range of potential outcomes. As described in the Canadian Oil and Gas Evaluation Handbook (COGEH), the resulting probability distribution curves represent the low estimate, best estimate, and high estimate, which correspond to the P90, P50, and P10 probability estimates of hydrocarbon volumes, respectively. The probability that the quantities of oil actually in place will equal or exceed the estimated amounts is 90 percent for the low estimate, 50 percent for the best estimate, and 10 percent for the high estimate.

With respect to the Anticosti project, no estimates have been made as to the total cost required to achieve commercial production, there is no estimate as to the specific timeline of the entire project nor as to the estimated date of first commercial production, the anticipated recovery technology is anticipated to be from primary oil production following fracture stimulation, and no operations are currently underway on the project.

The effective date of the Report is September 1, 2011.

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land in the Appalachian basin in the Province of Quebec, including the Galt Oil Property on the Gaspé Peninsula in eastern Quebec, landholdings on Anticosti Island in the Gulf of St. Lawrence and landholdings in the St. Lawrence Lowlands between Montreal and Quebec City. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, the company operates a drilling services division.

Forward-Looking Statements and Disclaimer

Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to Junex at the time and involve known and unknown risks, uncertainties and other factors that may cause Junex's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Junex's business and activities appears under the heading "Risks and Uncertainties" on pages 7 to 10 of Junex's 2014 annual management's discussion and analysis, which is available on SEDAR at No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Junex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Junex. Junex disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Junex Inc.
Mr. Peter Dorrins
President & Chief Executive Officer

Junex Inc.
Mr. Dave Pepin
Vice President - Corporate Affairs

Source: Marketwired (Canada) (October 29, 2015 - 8:45 AM EDT)

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