Canuc Resources Corporation (CDA.V) has edged lower and closer
to a year low 5.5 cents as it reported that the company continues
to expand its activities in Texas.
A 15% working interest (12% net revenue) 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
feet. The first hole completed on this lease in September was
drilled to a depth of 4,552 feet 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 500,000 cubic feet of
natural gas per day however in order to preserve reservoir
pressure, production commenced in October at a rate of 250,000
cubic feet per day.
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
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