Canuc to drill second well on Walker Buckler ranch
TORONTO -- Canuc Resources is continuing to expand its activities in Texas. A 15% working interest was recently acquired in a 14,574 acres lease located in Shackleford county, north central Texas. The land package, known as the Walker Buckler ranch, was extensively drilled 60 years ago targeting shallow, oil bearing formations. A recent seismic survey over the area has indicated the presence of hydrocarbons at depths greater than 3,000 ft.
The first hole completed on this lease in September was drilled to a depth of 4,552 ft and intersected 2 potential horizons know as the Caddo limestone and the Marble Falls conglomerate.Following completion of the well, open flow testing showed the well to be capable of producing 500 Mcfd of natural gas however in order to preserve reservoir pressure, production commenced in October at a rate of 250 Mcfd.
A second well on this lease will be started in the next two weeks. It is approximately a five mile step out to the north from the first well and is in an area which is more oil prone. The Walker Buckler Ranch is a substantial land package which, based on the industry standard spacing of wells every 40 acres, allows for the drilling of a considerable number of additional wells. As with the Company's other projects in Texas, natural gas transmission lines are present on the property.With the addition of the Walker Buckler lease, Canuc is now participating at various levels in 16,074 acres of leased land in north central Texas.
At present, the company has 4 wells producing positive cash flow with 2 to 3 additional wells scheduled to be drilled in the next 3 to 4 months including 1 to 2 additional wells on the 1,000-acre Thompson lease located in Stephens county. The first Thompson well, which commenced production in January 2012,continues to produce at approximately 500,000 Cfpd with consistent pressure, suggestive of a substantial reserve. The company's intention is to participate in additional wells as more land leases are acquired in the immediate vicinity.
"The company's oil and gas business is beginning to generate a positive cash flow and indications are that with our significant land package in central north central Texas, this will continue to increase as more development takes place in 2013" said Gary Lohman, President & CEO of Canuc Resources.