Light Oil Plays In Eastern Canada

Transcription

1 Light Oil Plays In Eastern Canada Presented by: Jean-Sébastien Marcil Exploration Manager In collaboration with: Peter K. Dorrins Jérémie Lavoie Nabila Mechti Luc Massé Daniel Cantin-Plante Jean-Yves Lavoie

2 Prospective Statements This document contains prospective statements which state the expectations of management with regards to the growth, the operation results, the return and the commercial prospects and occasions for future business deals for Junex Inc and its projects. When necessary, verbs like to anticipate "to be of said opinion", "to expect", "to intend", "to estimate", "will be" and similar expressions were employed to announce these prospective statements. These statements state the statements that which the management holds for truth and are founded on information that the company currently possesses. The prospective statements involve considerable risks, uncertainties and assumptions. A certain number of factors could impact upon the results really obtained, the return actually reached or the achievements and differ considerably from the results in question or which are implicit in the prospective statements. Although the prospective statements appearing in this document are founded on what the management of Junex believes to be reasonable assumptions, Junex Inc cannot guarantee to the possible investors that the real results will be in conformity with these prospective statements.

3 Junex Leader of Oil & Gas Exploration in Quebec Created in 1999 & listed on the TSX Venture Exchange in June 2001 Headquartered in Quebec City with ~ 40 employees (Quebec residents) Holds exploration rights on ~ 5 million acres in Quebec 233,275 net acres in the Deep Macasty Shale Fairway on Anticosti Island 12.2 Billion Barrels Undiscovered Shale Oil Initially-in-Place ("OIIP") or 33.5 million bbls/mi 2 (NSAI P50) Largest Net Acreage Holder in Utica Shale Gas play at ~800,000 net acres in all three Utica Play Fairways Total Undiscovered Prospective OGIP Resources ~ 45 TCF Net Recoverable Unrisked Resources > 3.5 TCF (NSAI P50) Controls virtually all of the Utica oil & liquids-rich belt Galt Oil Project (Eastern Quebec) Potential of 330 million barrels OIIP 36 Million Bbls Discovered Contingent 294 Million Bbls Undiscovered Resources (NSAI P50)

4 Lowlands Utica Shale Gas Play Total Undiscovered Prospective OGIP Resources > 330 TCF Gaspé Peninsula (Galt) Total OIIP Resources of 330 MMBO Net Rec. Resources of 30.7 MMBO Taconic Front (overthrust) (NSAI P50) Junex s Total Undiscovered Prospective OGIP Resources > 45 TCF Junex s Net Recoverable Unrisked Resources (for ~ 800,000 net acres) > 3.5 TCF (NSAI P50) 65% eval. Appalachians Sub-basin Shale Gas Play ~ 1.8 million net acres Chaleurs Bay (overthrust, etc) Anticosti Macasty Shale Oil Total OOIP = 46 Billion Bbls Junex s Total Undiscovered OIIP (for 233,275 net acres) = 12.2 Billion Bbls (NSAI P50) (modified from Dorrins, 2012) Oil or Liquids-Rich Plays Natural Gas Plays

5 Ordovician Petroleum System of NE North America NE Quebec is one of Canada's largest energy markets : 300 Mboe/year Daily oil consumption: 410,000 bbl (transport) Annual gas consumption of 180 Bcf SW 80% of gas consumers are industrial and commercial Gas network covers several areas in the Utica Shale Fairway Infrastructures : 2 oil refineries; 3 gas storage facilities; pipeline network.

6 NE North America Ordovician Shale Correlation SW NE

7 Lowlands Utica Shale Gas Play ~ 800,000 net acres (Junex) Junex s Total Undiscovered Prospective OGIP Resources > 45 TCF Taconic Front (overthrust) Chaleurs Bay (overthrust, etc) Junex snet Recoverable Unrisked Resources > 3.5 TCF (NSAI P50) 65% eval. Oil or Liquids-Rich Plays Natural Gas Plays

8 Lowlands Utica Shale Fairways Shallow Structured Deep

9 Permeability & Porosity Pore Throat Aperture CT-Scan Measure porosity MACASTY Characterize fracture network Highlight sedimentary patterns (CSUG/SPE , 2010) Oil molecule size ranges from 0.5 to 3 nm ( to microns) Methane molecule size is 0.4 nm ( micron) Pore throat size of most of Utica & Macasty > size of oil molecule

10 Lowlands Utica Shale Thermal Maturity JNX St-Augustin -1 1 st propane stimulation of shale in Eastern Canada (2009) The only propane stimulation of the Utica Shale (Canada) Propane selected as completion fluid as liquid hydrocarbons present in formation Depth stimulated ~435m & 475m No water recovered Flowback - Produced 47 bbls 37 o API oil & gas flow of 467 mcf/day in 1 st 109 hrs (~ 100 bbl oil / mmcf)

11 St-Augustin No. 1 Well Gas Type Methane as sampled from Utica cores, Geojars & Isotubes Cross-plot of carbon isotope composition vs wetness (ethane + propane + butane) Gas plots as Oil Associated Gas

12 What does this mean? Utica Shale at St. Augustin - Shale Oil St. Augustin well information & other learnings may be applied to Utica / Macasty Shale Oil exploration on Anticosti Island Level of thermal maturity is important Formation depth is important = reservoir pressure is important

13 Ordovician Shale Thermal Maturity Belts St-Augustin Shale Oil OOIP*: 33,5 MMbbl/mi² Junex Deep Fairway OIIP 12.2 Billion Bbls * From September 2011 Netherland Sewell and Associates Inc. Ressource Estimates Independant Report for South Anticosti Island

14 Anticosti Stratigraphy Macasty Shale Trenton/Black River Romaine

15 Anticosti Island Macasty (Utica) Shale Oil N 224 line-km of 2D seismic survey completed in 2012 Numerous prospects identified S JNX has significant land position of 233,275 acres (364 mi 2 ), mostly in the Deep Macasty Fairway from ~ 1,150 to 2,350 m (~ 3,800 to 7,700 ft) on SW side of Jupiter Fault zone 12.2 Billion Barrels Undiscovered Shale Oil Initially-in-Place ("OIIP") (NSAI P50) in the Macasty Shale on Junex lands (33.5 million bbls/sec OIIP) Deeper Conventional Oil Potential (Trenton/Black River, Romaine)

16 Anticosti Island Cross-Section S Deep Macasty Fairway Oil Window 224 line-km of 2D seismic survey completed Numerous prospects identified N JNX Permits Macasty Shale Stratigraphic equivalent of the Utica Shale in Quebec Lowlands & Ohio Macasty is thicker to south of Jupiter Fault (ave. 80m on JNX lands vs 40m at Chaloupe well) Deep Fairway South of Jupiter Fault Shale is Deeper = Higher reservoir pressure = greater reservoir energy Deep Fairway compares favorably with Eagle Ford & Ohio Utica oil/liquids belts Brittle mineralogy - ave. 50% Quartz + Feldspar, 35% Carbonate, and 15% Clays Good to Excellent Organic Richness with an average TOC content of 2.6 wt % (range of 1.2 to 3.7 wt %) Good Porosity average porosity of 6.3% (range of 4.0 to 8.6%)

17 Macasty Shale Mineralogy & Geochemistry

18 Geochemical Parameters from Rock-Eval Remaining Hydrocarbons S1 amount of free oil and gas already generated in the rock S2 amount of hydrocarbon generated from thermal cracking of non-volatile organic matter (kerogen) Modified after: Tmax temperature of maximum release of hydrocarbons Production Index: S1 / (S1 + S2) Ratio of Already Generated hydrocarbons to Potential Hydrocarbons Low ratio immature or extremely post-mature High ratio mature stage or contamination

19 S1 / (S1 + S2) Comparison of Macasty to Utica & Eagle Ford Deep Fairway Outside of Deep Fairway (shallow and/or shallow side of Jupiter Fault) S1 / (S1 + S2) = Already generated hydrocarbon to potential hydrocarbon ratio

20 S1 / (S1 + S2) Comparison of Macasty to Utica & Eagle Ford Shallow Macasty (shallow side of Jupiter Fault) S1 / (S1 + S2) = Already generated hydrocarbon to potential hydrocarbon ratio

21 Fairway Comparison: Ohio vs Anticosti Both maps are at same scale Both are Top Utica Structure Maps Both have same contour interval (& color shading) Black polygons at same scale on both maps Deep Fairway: Higher reservoir pressure = greater reservoir energy Deep Fairway compares favorably with Ohio Utica light oil belt (sufficient maturity in oil window as defined by geochemistry)

22 Where Could the Macasty Oil Potential Rank? Of OIIP of 46.1 billion bbls.

23 Anticosti Island - Summary Conventional Oil Targets Numerous structures & prospects defined on 2012 Seismic Structural Sags (hydrothermal dolomites) in Trenton/Black River Romaine Dolomite (Ellenburger eq.) Shallower Targets Macasty (Utica) Shale Oil Deep Fairway appears to have greatest potential (thickness, OIIP & reservoir energy) Deep Fairway compares favorably with Ohio Utica (depth & thermal maturity) Eagle Ford (thermal maturity) Junex Lands dominantly in Deep Fairway OIIP potential of 12.2 billion barrels on Junex Lands (NSAI P50) or 33.5 million bbls/mi 2 (versus ave. ~14.2 million barrels per mi 2 * elsewhere on Anticosti *) * Based on Sproule s 2011 Resource Assessment of the Macasty Fm. on Petrolia & Corridor P&NG Holdings on Anticosti

24 In the Heart of the Utica Play Merci!!! Taconic Front (overthrust) Galt Haldimand Gaspé Peninsula St. Lawrence Lowlands ~ 1,5 million acres Chaleurs Bay (overthrust, etc) Appalachians Sub-basin Shale Gas Play ~ 1.8 million acres