Anticosti island covers 800,000 hectares. The South Anticosti block of permits covers an area of 944 square kilometers and is 100% held by Junex.
Junex’s acreage on Anticosti is principally situated to the south of and on the deeper side of the major Jupiter Fault Zone ("Jupiter Fault") where the prospective sedimentary layers are located deeper than those located north of the fault. Based on the results obtained from the Utica Shale in the St. Lawrence Lowlands and those observed in the majority of the basins in the U.S., Junex is of the opinion that the Macasty Shale located in the Deep Fairway should have a more significant reservoir pressure (or reservoir energy) than the shallow Macasty located outside of the Fairway, which could translate by a potentially increased production in the Deep Fairway.
Based on available data, the company’s mapping indicates that the Macasty’s average thickness is approximately two times that encountered in the wells previously drilled by other operators outside the Deep Fairway. Junex’s interpretation of pertinent geochemical lab data indicates that the organic-rich Macasty on its Deep Fairway acreage places it well within the Oil Window of thermal maturity, which compares much more favourably with published findings for the oil-rich Utica/Point Pleasant Shale in Ohio and the prolific Eagle Ford Shale in Texas than currently does the less thermally mature Macasty Shale outside of the Deep Fairway.
In addition to the Macasty Shale, the deeper sedimentary sequences contain an excellent oil and gas potential. Several seismically-defined drilling targets have been identified within the Trenton Black River Formations, which is a prolific producer in the Appalachian basin in the United States.
Future Field Operations
During the first quarter of 2014, the company had signed a Letter of Intent (“LOI”) with Ressources Québec that could have led to an exploration program in two stages for a total maximum of $90 million funded entirely by RQ and a third partner from the industry to be identified. In return for their investment, Ressources Québec and the industry partner would have earned an 80% interest in a limited partnership company that would have controlled 100% of Junex’s permits.
In the course of discussions with other potential industry partners in the following months, Junex decided to maintain 100% of its interests on its Anticosti block permit and wait for the results of the exploration campaign led by the other companies involved on the island instead of pursuing the LOI any further and thus let the LOI on 1 November 2014. If the operations performed by our competitors the neighboring acreage would be successfully completed, then this exploration campaign should largely "de-risk" Junex’s land package without necessitating any investment of capital or dilution of interest on our part.
Publicly-available maps showing the locations of the stratigraphic coreholes drilled by neighboring acreage holders to date and their planned wells indicate that these have been and/or will be situated near Junex’s permits. As a result of the upcoming drilling operations, the value of our permits could fluctuate. If the neighboring acreage holders’ schedule is respected, their three horizontal wells should be drilled and fracture stimulated in 2017.
Junex has no intention of investing in the Anticosti project until results from our neighboring acreage holders, Hydrocarbures Anticosti Limited Partnership are known.
The potential units are:
- MacAsty Shales (equivalent to the Utica);
- Dolomite sandstone of the Mingan Group (equivalent to theBlack-River/Chazy);
- Dolomites of the Romaine Group (equivalent to Beekmantown);
- Sandstone of the Vauréal formation.