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JUNEX STARTS DRILLING ITS GALT NO. 4 HORIZONTAL WELL

|Includes: Junex Inc. (JNEXF)

Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land located in the Appalachian basin in the Province of Quebec.

When a trained geologist sees an opportunity missed by others it sometimes turns into a real niche play, which if successful can give them a nice lead ahead of others in the exploration business.

Junex might be onto something in Quebec.

They have convinced others to fund them to this point. They now have their own dedicated Rig which makes sense based on the cost of a rig move from others and the fact that drilling in the plays they are after might require specialization that would work better if the drilling staff had a stake in the company along with management.

This will take a few more years to be noticed by most investors. If you start reading what they are upto and why they are chasing the basins they have acquired rights to you will see that their geological thesis has some legs.

They are getting underway with a program that may further confirm the exploration of oil in unconventional basins and success would give them first mover advantage in a fairly niche play.

I will add to this post with some footnotes later in the month as I attended an in-depth presentation on Anticosti in June, and it has some fascinating components worthy of further discussion.

http://www.junex.ca/market-information

The company is in the heart of the Utica Shale gas discovery located in the St. Lawrence Lowlands and holds a significant land-package on the Anticosti Island where an independent report has provided their Best Estimate of the undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on all five of Junex's permits on Anticosti Island at 12.2 billion barrels. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, the company operates a drilling services division.

The Junex Galt No. 4 Horizontal well, the first in a series of horizontal wells planned for the next phase of the project, will be drilled from the existing Junex Galt No. 4 vertical wellbore towards the Galt No. 3 well in the Forillon Formation. The wellbore trajectory is designed to intersect a greater number of open, near-vertical fractures than that encountered in the Galt No. 3 vertical well that Junex recently production tested at an initial rate of 180 barrels of oil per day in late July (see July 30, 2014 press release)

Gaspésie

The basin of Gaspésie covers an area of more than 300,000 hectares. Junex holds 669,235 hectares (1,653,716 acres) under exploration licences in this sedimentary basin.

This region's geology offers many conventional and unconventional exploration targets, the most well-known being the sandstone of Forillon. Following the production of the Galt gas deposit, Junex continued the sector's exploration and discovered an important accumulation of oil. According to Netherland, Sewell and Associates, net recoverable prospective gas resources on the Galt licence would be of 20 million barrels. The Galt project presently covers an area of 21,935 hectares (52,868 acres).

The petroleum potential of the Forillon Formation on Junex's Galt Field property was previously evaluated for Junex by Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas. In its report, NSAI placed their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources at 260.2 million barrels for the Forillon Formation on Junex's Galt Field property. This 260.2 million barrel figure includes Discovered Contingent OIIP volumes of 26.3 million barrels and Undiscovered Prospective OOIP volumes of 233.9 million barrels. - See more at: www.junex.ca/recent-activities/galt_106#...

The petroleum potential of the Forillon Formation on Junex's Galt Field property was previously evaluated for Junex by Netherland, Sewell & Associates, Inc., ("NSAI"), a firm of worldwide petroleum consultants based in Texas. In its report, NSAI placed their Best Estimate of the total Oil-Initially-In-Place ("OIIP") resources at 260.2 million barrels for the Forillon Formation on Junex's Galt Field property. This 260.2 million barrel figure includes Discovered Contingent OIIP volumes of 26.3 million barrels and Undiscovered Prospective OOIP volumes of 233.9 million barrels. - See more at: www.junex.ca/recent-activities/galt_106#...

- See more at: www.junex.ca/gaspesie-en#sthash.4UN4zyes.dpuf

See more at: www.junex.ca/press-releases/junex-mobili...

Junex holds 70% interest in the 16,645 acre-sized Galt Oil Property and 100% interest in the 36,816 acre-sized permit adjacent to the Galt Oil Property. 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. - See more at: www.junex.ca/press-releases/junex-mobili...NEWS RELEASE 14 October 2014JUNEX STARTS DRILLING ITS GALT NO. 4 HORIZONTAL WELL

OCTOBER 14, 2014 - QUEBEC CITY, QUEBEC - Junex Inc. (TSX VENTURE:JNX) ("Junex" or the "Company") is pleased to announce that it started drilling its Junex Galt No. 4 Horizontal well earlier today with its recently-acquired, 3,000 meter-capacity Foragaz No. 4 drilling rig.

The Company also announces reception of a new drilling permit from the Quebec government for its next horizontal well on the property, the Junex Galt No. 5 Horizontal well, which the Company intends to drill following the Galt No. 4 Horizontal well.

Mr. Peter Dorrins, Junex's President & Chief Executive Officer comments: "The Galt No. 4 Horizontal well is a "First" in two respects: not only is it the first horizontal well on our Galt Oil Property but it is also the first horizontal oil exploration well ever to be drilled by industry anywhere east of Quebec City in the province of Quebec. With our long-standing partner in the Galt Oil Property, Mr. Bernard Lemaire, we are quite excited to be drilling this milestone well in the most advanced oil project in Quebec. We are proud that this well is being drilled with our own drilling rig staffed by our Quebec-resident employees."

Mr. Dorrins continues: "With a sizeable resource potential of 330 million barrels of total Oil-Initially-In-Place, this oil project contains the largest combined Discovered Contingent Oil Resource and Undiscovered Prospective Oil Resource potential established by independent evaluators so far on the Gaspé Peninsula. We forecast that the planned 1,300 meter-long horizontal leg of the Galt No. 4 Horizontal well should take between approximately 55 days to drill, after which testing operations are planned to commence."

The Galt No. 4 Horizontal well is being drilled from the existing Junex Galt No. 4 vertical wellbore towards the Galt No. 3 well and is designed to optimally intersect the maximum number of open, near-vertical, natural fractures in the Forillon Formation reservoir. The initial production rate of 180 barrels of light oil per day recently achieved during a production test in the Junex Galt No. 3 vertical well, that emanated from only a few near-vertical fractures in the well, demonstrated the potential of the Forillon reservoir on the Galt Oil Property and permitted the Company to review and finalize its plans for testing of the Galt No. 4 Horizontal well in the event that it is successful (see Junex's July 2, 2014 and August 5, 2014 press releases).

Junex holds a 70% interest in the Galt Oil Property and 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 Junex's 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).

About Junex

- See more at: www.junex.ca/press-releases/junex-starts...

Junex to explore for oil on Anicosti Island.

Anticosti island covers 800,000 hectares. Junex's project covers an area of 94,403 hectares (233,275 acres) stretching on 5 exploration licences, bordering the south side of the island.

According to Junex's mapping, these licences are located in an area very favourable to oil exploration. The South Anticosti sector, located below the Jupiter fault is the most favourable for hydrocarbon accumulation in the different identified reservoirs.

- See more at: www.junex.ca/anticosti-en#sthash.YTvfm67...