TSX Venture Exchange
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TORONTO, Feb. 27, 2013 /CNW/ - Canuc Resources Corporation ("Canuc" or the "Company") (TSXV:CDA) is pleased to report that the Company continues to expand its oil and gas activities in Texas. As of February 26, 2013, the Company is participating at various levels in 5 producing gas wells and 1 oil well under development.
The Thompson lease consists of 1,000 acres in Stephens County, Texas. Canuc has a 20% working interest (16% net revenue interest) and due to the success to date, additional drilling will be scheduled once all the technical data has been reviewed. In January 2013, the second well, Thompson 40 #2 was completed and as of February 19, 2013, the well commenced production at 350,000 cubic feet per day. This well was drilled 2,000 feet southeast of the Thompson 40 #1 well and intersected 2 gas bearing horizons including 10 feet of the prolific "Iona Hickey" conglomerate that is the productive horizon in the Thompson 40 #1 well. In addition to the gas bearing horizons, the Caddo limestone was intersected in the well and had a fractured appearance. This zone is known to be oil bearing in this area and can be put into production when the reserves in the lower conglomerates are depleted. With potentially 3 productive horizons, this well could have a life expectancy of up to 10 years.
The Walker Buckler lease consists of 14,754 acres located in Shackleford County, approximately 13 miles northeast of Albany, Texas. A seismic survey completed by the former lease owner, Enron Oil & Gas Company, over the area indicated the presence of hydrocarbons at depths greater than 3,000 feet. Two gas transmission lines cross the ranch facilitating transport. Canuc has a 15% working interest (12% net revenue interest) in the lease.
To date, 3 wells have been completed with 1 presently producing natural gas. The W-B #1 well commenced gas production in October 2012 at a rate of 250,000 cubic feet per day. The gas produced contains condensates for which we are being paid a premium over regular natural gas. Recently, on the same lease, the W-B 533 Unit #1 well was completed to a depth of 4,458 feet intersecting 3 potential oil bearing horizons within the Caddo limestone zone This zone is 20 feet in width and is currently being perforated after which the flow rate will be determined and the well brought on stream. The oil is stored on site in tanks then transported to a refinery. Depending on flow results, additional wells will be drilled in the area.
"We are very pleased with the results from our Texas projects and the potential cash flow this will generate over the coming years. Additional wells are scheduled throughout 2013 as we continue to expand both our asset base and cash flow in Texas," said Gary Lohman, President and CEO.
Canuc is a junior natural resource company with its principal exploration properties located in Ecuador and Nova Scotia. Canuc is also active in the Oil and Gas sector in Texas and will be expanding these activities throughout 2013.
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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
Chris Chadder, CFO