Drake Energy Surges On Gas Estimate

TORONTO (SHfn) – Junex (TSX:V.JNX) shares jumped 13% to $1.95 on Tuesday after the energy junior announced that Netherland, Sewell & Associates, Inc., an independent reservoir engineering firm based in Texas, has provided their "Best Estimate" of the Prospective Original Gas in Place Resources (OGIP) volumes for the Utica Shale on the Junex's Nicolet Permit in the St. Lawrence Lowlands at 8.67 Trillion Cubic Feet (TCF). Junex's 50% interest of this Prospective Resources OGIP volume is 4.33 TCF.

As well, shares of Drake Energy (TSX: V.DPE) moved up 33% to 14 cents as the micro cap energy explorer reported the re-entry of a horizontal well (01-24) at Sousa in Alberta. The well is currently producing over 120 BBLD of light sweet crude oil. The well has been producing since the beginning of the month and has seen steadily increasing levels of production. The 01-24 well is expected to qualify for both the 5% royalty program and the transitional royalty rates.

Western Coal (TSX:T.WTN), meanwhile, announced third-quarter sales of $118.7 million and earnings of $24.0 million, or 10 cents a share. The company lowered its Canadian operations cash costs (cost of product sold plus transportation costs) to $96 per tonne, which was 4% less than the previous quarter, while U.S. operations cash costs fell to US$66 per short ton, or 7% lower than the previous quarter. Cash in the bank as at December 31, 2009 was $150.1 million, or $55.5 million more than September 30, 2009. Western Coal stock popped 11% to $3.50.

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