"This NR was what started the euphoris with the Canadian juniors holding land in the area. The question however which remains fuzzy, after reading closely the various NR's of the Canadian companies is all claim partnership and/or having land adjacent to the gas discovery. Not a single company was able to put down (like FST) an estimated net resource potential attributable to their interest."
Forest Oil = US Company
Any technical opinion from a US geologist is not compliant with 51-101 standards, which implies that it cannot be published by any Canadian company.
JNX = (155,000 + 55,000) / 329,000 = 63% of the total 329,000 acres
Best case scenario = 5 mmcf (horizontal fracced well)
$2.5 million capital cost
Current netback = $7.00 per mcf (QEC webcast)
Cash flow per day = $35,000
Each well would be paid off in 71 days after completion
I believe that the land is very close to the pipeline between Quebec city and Montreal.
JNX, GMR, and PEA are Quebec companies. JNX has a prominent Quebec businessman with direct ties to the Quebec government.
JNX own their own drilling company with two rigs. I do not believe that they have horizontal drilling capacities right now. Forest Oil may be able to lend/sell them an add-on package!
