Canuc Resources Corporation (“Canuc” or the “Company”) is pleased to announce completion of a previously reported repair and workover operation. The successful workover operation was undertaken on the natural gas producing Coody-Morales Trac 3-3 well held by the Company’s 100% owned subsidiary MidTex Oil and Gas Corporation (“MidTex”). Founded in 2011 in the Province of Ontario Canada, MidTex holds ownership and lease rights for (8) producing natural gas wells in Stephens County, West Texas and also holds rights for further in field developments.
The Big Saline Formation is a natural gas bearing zone which is located at approximately 3,700-feet true vertical depth (“TVD”) in the Company’s operating natural gas wells. The Company’s Coody-Morales Trac 3-3 well has been producing from the Big Saline for more than 13 years. The well was drilled in 2011, with a drilling and completion cost of $153K USD, and to date has produced a gross revenue of $1.05M USD ($1.45M CAD). The well has exhibited low decline rates and in 2023 produced 35,246 MCF of natural gas at an average sale price of $3.27 USD ($4.48 CAD) per MCF.
In early 2024 the Coody-Morales Trac 3-3 well evidenced a decline in natural gas production from the Big Saline Formation. The Company’s West Texas based operator concluded that tubing wear and calcification had contributed to the decline in natural gas production, and that a well repair and workover program might return the well to long term natural gas production averages. A successful workover has now been completed and the well has returned to production averaging ~100 MCF/day of natural gas for the months of June and July 2024.
Logs for the Company’s Coody-Morales Trac 3-3 well indicate that above the Big Saline Formation there are two additional hydrocarbon zones which are prospective for production. The Caddo Limestone is a potential oil-bearing zone located at approximately 3,200’ TVD and the Strawn Sands is a potential gas-bearing zone located at approximately 1,700’ TVD.
The Company expects to move up hole to complete and test both the Caddo Limestone (oil) and the Strawn Sands (natural gas) respectively at some point in the future, after economic depletion of the Big Saline Formation.
“The Big Saline Formation in the Coody-Morales Trac 3-3 well has been producing cash flow for the company since 2011 and has paid out several times over the drilling and completion costs of the well. The workover has now successfully increased natural gas production for the well. We expect to continue producing the Big Saline Formation until it is depleted. Above this zone, and behind pipe, are two further zones which are prospective for hydrocarbon production, the Caddo Limestone (oil-bearing zone) and the Strawn Sands (natural gas-bearing zone). The company has interests in a total of 8 producing wells in Stephens County, West Texas and also holds rights for further in field developments.” Stated Christopher Berlet, President & CEO of Canuc.
“In developing the company’s cash flow from our MidTex energy project in West Texas, we seek to protect shareholders from unnecessary dilution and to benefit from advancement of competitive USA based energy assets.”
This press release has been reviewed and approved by Chris Cheng, P. Eng, director and QP for the Company.