Junex Inc. says that its partner, Canadian Forest Oil Ltd. (Forest), has committed to the drilling and completion of a horizontal well in the Utica Formation in order to earn an interest in the Lorraine and Utica Shale sections of the Richelieu North Permit in the Contrecoeur area, located approximately 50 kilometers from the city of Montreal.

Contractually, Forest must spend $4 million to earn 60% working interest in the Shale section of the lands. In such event, Junex will retain the 40% balance of the working interest in the Shale section of the lands along with a 100% working interest in other geological formations, including the Trenton/Black River.

In its work commitment, Forest has proposed to drill a vertical pilot hole and acquire wellbore data in the winter of 2010, then analyze the acquired wellbore data, followed by the drilling and completion of a horizontal wellbore in the Utica Formation in the summer of 2010.

"We are pleased that Forest is planning to move ahead on the Richelieu North Permit. This effort will complement Junex's exploration operations focussed on evaluating the Shale Gas potential of its vast land base in the St. Lawrence Lowlands" commented Junex's CEO, Mr. Jean-Yves Lavoie, P. Eng.

Tags: Junex