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Junex and Petrolia Join Forces to Discover and Produce Oil in Quebec's Gaspe Peninsula
Junex and Petrolia Join Forces to Discover and Produce Oil in Quebec's Gaspe Peninsula.
About this update from Cavvy Energy Ltd
[{"type":"text","content":"\n\n\n\n\nMONTREAL, April 12 /CNW Telbec/ - Junex (JNX - TSX VENTURE) and Petrolia\n(PEA - TSX VENTURE) are pleased to announce the completion of a partnership\nagreement that will accelerate the discovery and production of oil in Quebec's\nGaspe Peninsula. Through this partnership both companies will control\napproximately 70% of all exploration permits in the Gaspe Peninsula, primarily\nthose permits that are considered to be most favourable to hydrocarbon\ndiscovery and production.\nThe objective of the partnership is to combine the landholdings of both\nJunex and Petrolia and then to leverage the Junex technical expertise with\nPetrolia's financial resources to explore and develop oil production as soon\nas possible. Three targets have already been identified. These targets are\nlocated at shallow depths and are ready to be drilled in 2005, wholly financed\nwith Petrolia's cash. The partnership between Junex and Petrolia will result\nin the initiation of an intensive drilling program costing between $5M and\n$10M to be carried out within one year.\n\nIn accordance with the partnership agreement, Junex is transferring to\nPetrolia:\n\n- Two permit blocs totalling 6,366 km2 located between Murdochville and\n GaspDe (Blocs \"B\" and \"C\" on the map available at www.petroliagas.com\n and www.junex.ca)\n- A right of first refusal on two other permit blocks held 100% by Junex\n and totalling 5,885 km2 (Blocs \"D\" and \"E\" on the map available at\n www.petroliagas.com and www.junex.ca)\n\nThe transferred permits adjoin permits currently held by Petrolia in the\nGaspe Peninsula that surround the Galt permit where Junex has a producing a\nnatural gas field and indications of oil as evidenced by 200 barrels of oil\nproduction during a 2004 production test.\n\nIn return for the Permit transfer, Junex is receiving:\n\n- 3,128,718 shares of Petrolia at a price of $0.40 ($1,251,487)\n- A \"Back-In\" right in the development and production project equivalent\n to 50% of Petrolia's participation in case of any oil or gas discovery\n on Blocs B and C, and\n- The right to elect a Junex representative to the Petrolia Board of\n Directors.\n\n\"This partnership will rapidly bring Junex closer to its main goal which\nis to operate profitably while developing the oil and gas potential of the\nGaspe Peninsula.. This strategy will also minimize ...