Long-life natural gas wells providing steady cash flow

Overview

In July 2011 Canuc completed the acquisition of MidTex. MidTex holds a 100% working interest in natural gas wells on the 320 hectare Coody Morales lease and a 20% working interest in natural gas wells on the 2,000 hectare Thompson lease in Stephens County, Texas.

• Natural gas pipelines run directly to the properties
• Wells show long-life projections and slow decline rates
• Wells have multiple further productive horizons, up-well and behind pipe
• Both leases have room to support further wells

Coody Morales lease

The Coody Morales Tract 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. A gas pipeline bisects the property, making the gas immediately saleable.

Thompson lease

The Thompson lease covers 2,000 hectares and can accommodate multiple additional wells. The first well (Thompson 40) was drilled in 2012; further wells followed in 2013 and 2014. Wells drilled on the lease have identified 3 productive horizons, and decline rates in the lowest horizon, the Iona Hickey Conglomerate, have proven slow.

The producing wells connect to a short collector line tied into a larger natural gas line supplying consumers local to Stephens County, which supports a higher net gas price through low transportation costs.