2010-01-14-2009-11-12-2009-11-12

Earned 50% WI in 54,363 acres in St. Lawrence Lowlands Utica play.

Junex Inc., Quebec City, Quebec (Toronto Venture: JNX) has earned a 50% working interest in the interval from the surface to the base of the Utica formation in the Nicolet permit from Canadian Quantum Energy Corp., Calgary, (Toronto Venture: CQM) for an undisclosed price. The permit covers 54,363 acres in the St. Lawrence Lowlands Utica play. Junex earned this working interest by drilling two wells on the Nicolet property to the base of the Utica formation, of which the St-Gregoire #2 well was the second earning well. Junex completed a seismic survey of approximately 14 line-kilometers to position the well proximal to and on the downthrown side of the Yamaska Fault Zone. This well was drilled to total depth of 1,619 meters and a total of 42.6 meters of cores was cut in the Utica shale. These cores were conserved by and sent to CBM Solutions for laboratory analysis. The St-Gregoire #2 well also encountered significant gas shows with overpressure in lower sections of the wellbore, necessitating the installation and cementing of seven-inch diameter intermediate casing in the well. The Utica formation is approximately 247 meters thick in the well and isotopic analysis of the gas indicates that it is thermogenic in origin. Preliminary core analysis results have been received: preliminary gas contents of the Utica cores of up to 38 standard cubic feet per ton have been measured. Final results are expected in the coming weeks as sufficient time must be allowed to permit more thorough degassing and measurement of the sorbed gas to occur. Subject to final core results and all other scientific data collected in the St. Lawrence Lowlands Basin, Junex and its partner, Canadian Quantum, plan to implement an exploration program in the coming months that may include completion of one or both wells drilled on the Nicolet property. Drilling operations on the first of the two earning wells, the Junex St-Gregoire No. 3 well, were completed in the spring. This 875 meter-depth well, cased to total depth with seven-inch diameter production casing, targeted the Ordovician Lorraine and Utica shales on the upthrown side of the Yamaska Fault on the Nicolet block. The presence of natural gas was confirmed in the shale section and two nine-meter long cores were cut in each of the Lorraine formation and the Utica formation. Isotopic analysis of the gas indicates that the gas is thermogenic in origin. As in the case of the St-Gregoire No. 2 well, these cores were analyzed by CBM Solutions for various components, including total gas content, total organic carbon and porosity. The Lorraine cored interval yielded TOC's of up to 2.6%, effective porosities of up to 2.9%, and total sorbed gas contents of up to of 12.9 scf per ton. The Utica cored interval yielded TOC's of up to 2.6%, effective porosities of up to 5.3%, and total sorbed gas contents of up to 22.5 scf/ton. Junex president and chief executive Jean-Yves Lavoie says, "The preliminary results of these two first wells at Nicolet demonstrate the Shale Gas potential of both the shallow and the deep parts of the permit. The measured amounts of total sorbed gas are generally consistent with those that we've observed elsewhere in prospective parts of the play trend. Furthermore, the significant gas shows associated with overpressure in the St-Gregoire No. 2 well, combined with the preliminary results of gas content in the cores, are all very encouraging data that demonstrate the gas potential of the deeper part of the permit, which covers approximately 75% of the lands. "