Canuc Plans Another Gas Well on the Thompson Lease in West Texas
Toronto, Ontario (Newsfile Corp. - February 14, 2018) - Canuc Resources Corporation (TSXV: CDA) ('Canuc' or the 'Company') is pleased to announce plans for drilling another gas well on the Thompson lease in Stevens County, West Texas. The Company currently has 6 producing gas wells on the Thompson lease, and there are a number of offset locations which can be drilled.
Wells drilled on the Thompson lease have identified 3 productive horizons. Decline rates for natural gas production in the lowest and first productive horizon, the Iona Hickey Conglomerate, have proven slow which suggests a robust natural gas endowment and a long field life. Above the Iona Hickey Conglomerate zone there are 2 further productive horizons. The first of these 2 further horizons is the Caddo Limestone, which is a well-known oil producer in the area. Further up the pipe is the Strawn Sand which is a gas zone. Both the Caddo Limestone oil zone and the Strawn Sand natural gas zone can be produced pursuant to sufficient decline of natural gas production from the lower Iona Hickey Conglomerate zone.
The 6 producing wells on the Thompson lease are connected to a short collector line which ties into a major natural gas line a few miles distance. This line supplies consumers local to Steven's County and ensures a higher net gas price as a result of low transportation costs.
So far, the initial 6 wells on the Thompson lease have experienced slow decline rates, producing at in excess of 80% of initial production rates after 5 years of operation, and are still producing gas from the first of the three productive horizons (Iona Hickey Conglomerate). The addition of new wells can potentially contribute further to oil and natural gas operations.
'Monthly revenues have helped us to cover corporate and public company expenses, and have assisted us in preventing unnecessary share dilution and treasury share issuance while permitting us to work at developing shareholder value with our high quality silver-gold metal assets at the San Javier Project in Mexico. By drilling additional 'in field' natural gas wells in West Texas, we are seeking to expand on, and further, this strategy,' stated Hub Mockler, Executive Chairman.
Canuc is a junior resources company whose principal focus is exploration and development of the San Javier Silver-Gold Project located 146 km east of Hermosillo in Sonora State, Mexico. The company also generates cash flow from natural gas production in Central West Texas, where Canuc has an interest in several producing gas wells, and has rights for further in field developments.
For further information on the content of this release or about Canuc Resources, please contact:
Canuc Resources Corporationcberlet@canucresources.ca416 548 - 9746
Disclaimer and Forward-Looking Statements
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 prevailing price of natural gas, the Canadian-United States exchange rate, amount of gas produced 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 the Company's annual financial statements and MD&A.
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14.02.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Canuc Resources Corporation
Canada ISIN: CA1389093040 End of News DGAP News Service