MidTex Energy Project Natural Gas Production
Stephens County, Texas, USA Natural Gas, Natural Gas Liquids, Oil
Canuc Resources Corporation (TSX-V: CDA, OTCQB: CNUCF, WKN: A14ZX4) receives revenue from the production and sale of natural gas made through its wholly owned subsidiary MidTex Oil & Gas Corporation “MidTex”.
In July 2011 Canuc completed the acquisition of MidTex. Today, MidTex is a wholly owned subsidiary of Canuc. MidTex holds a 100% working interest in natural gas wells located on the 320 hectare Coody Morales lease and a 20% working interest in natural gas wells located on the 2,000 hectare Thompson lease in Stephens County, West Texas.
MidTex has 8 long-life, low risk producing natural gas wells in Stephens County West Texas, USA.
- Natural gas pipelines run directly to the properties
- Lease 1: 320-hectare Coody Morales lease
- Lease 2: 2,000-hectare Thompson lease
- Wells show long-life projections and slow decline rates
- Wells have multiple further productive horizons (up-well & behind pipe)
- 8 currently producing natural gas wells provide steady, long-term cash flow
- Both leases have room to support further wells
Coody Morales lease
long-life wells with slow decline rates
The Coody Morales Trac 3 lease covers 320 hectares and can accommodate an additional 3 to 4 wells, which may intersect 2 or 3 known productive natural gas horizons. The lease benefits from a gas pipeline which bisects the property, making the gas immediately saleable.
Thompson lease
long-life wells with slow decline rates
The Thompson lease covers 2,000 hectares and can accommodate multiple additional wells. The first natural gas well drilled on the Thompson lease (Thompson 40) was drilled in 2012. In February 2013 a second well (Thompson 40 #2) intersected the same reservoir. A third well (Thompson “A”) was drilled in March 2013 and in July 2013 a fourth well (Thompson “B”) was successfully completed. In February 2014 a fifth well (Thompson 40 #5) was drilled, and it was also successful. Drilling was initiated on the sixth well (Thompson C) in June 2014.
Wells drilled on the Thompson lease have identified 3 productive horizons. Decline rates for natural gas production in the lowest productive horizon have proven to be slow, which suggests a robust natural gas endowment and a long field life. Above the lowest horizon (Iona Hickey Conglomerate) there are 2 further productive horizons.
The producing wells on the Thompson lease are connected to a short collector line which ties into a larger natural gas line a few miles distance. The larger line supplies consumers local to Stephens County and ensures a higher net gas price as a result of low transportation costs.
There is room for additional wells on company leases. The presence of multiple hydrocarbon horizons behind pipe in existing wells suggests long-life cash flow potential for MidTex in West Texas.
Gallery
