Canuc Resources Corporation Reports on the #3 Well for its Midtex Oil & Gas Project.

TSX Venture Exchange
Symbol: CDA
Shares Outstanding: 59,735,798

TORONTO, Sept. 28, 2011 /CNW/ - Canuc Resources Corporation (Canuc or the company) (TSXV:CDA) is pleased to report that in addition to its wholly owned 320 acre oil and gas lease in Stephens County Texas known as the Coody Morales Lease, it recently acquired a 20% working interest (equivalent to a 16% net revenue interest) in a 600 acre project called the Thompson Lease that is located a few miles south of the Coody Morales Lease.  This lease along with the Coody Morales Lease is managed and operated by Marjac Oil & Company Inc. of Breckenridge Texas, a highly respected operator in the area.

On August 31, 2011 a well was spudded on the Thompson Lease and was completed on September 9, 2011 at a total depth of 4120 feet. The well intersected the Bend conglomerate as anticipated.  Slightly below the Bend conglomerate at 4020 feet, the well intersected a conglomerate horizon called the Ionahickey a loosely consolidated Cherty conglomerate gas bearing structure approximately 10 feet thick. This structure has a porosity of 26% which for a conglomerate bed is considered very high.  A production test lasting several hours and using a 12/64 inch choke flowed at a calculated rate of 900,000 cubic feet of gas per day.  In order to preserve pressure the well will be produced using a smaller choke size and should flow at around 400,000 cubic feet of gas per day. There is a low pressure gas line nearby which makes the gas easy to bring on stream and deliver to the market. This natural gas also contains some condensates which will result in a premium paid over the posted price for natural gas.

With this production discovery, management believes that the Thompson Lease has the potential to become a significant gas field.  Subject to the allowable spacing which we anticipate will be one well per 80 acres, an additional six wells could be accommodated on this lease.  Along with the above production, the Company is producing for its own account 150,000 cubic feet of gas per day on its two wells on the Coody Morales Lease.  Management of Canuc Resources is very pleased with the progress to date that has been made in Texas.  It is anticipated that the existing wells along with new wells, to be completed over the next several months, will generate significant cash flow. The importance of this income stream is that it provides Canuc with greater flexibility as to timing and market conditions when considering financing opportunities, while limiting any unnecessary dilution required to further develop its core exploration properties in Nova Scotia and Ecuador.

About Canuc

Canuc is a junior mining exploration company with its principal properties located in Ecuador and Nova Scotia.  Canuc's main holding is an approximate 85% interest in the Nambija Gold deposit located in south-eastern Ecuador.  According to records obtained from the Central Bank of Ecuador, it is estimated that, to date, nearly 3 million ounces of gold have been produced using the most primitive of mining and milling recovery processes from the Nambija area.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenues and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Annual Reports.

SOURCE Canuc Resources Corporation

For further information:

Gary Lohman, President & CEO 
416-867-1300 
glohman@canucresources.ca 




















Hubert Mockler, Executive Vice Chairman
416-416-867-1300
hmockler@canucresources.ca

 

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Canuc Resources Corporation

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