TORONTO, Sept. 3, 2014 (GLOBE NEWSWIRE) -- Canuc Resources Corporation ("Canuc" or the "Company") (TSX-V:CDA) is pleased to report a sixth meaningful success in the Thompson Lease (800 acre combined lease package) with the completion of the Thompson "C" well in Stephens County, Texas. This well was spudded on the Thompson Lease approximately 1,600 feet due east of the Thompson "40" well which was completed in January 2012. The well was drilled to a depth of 4,159 feet and intersected 4 potential hydrocarbon bearing zones. Production, similar to the Thompson A and B wells is expected to start in approximately 2 weeks. It is envisaged that several further potentially productive wells may ultimately be drilled on the Company's Thompson Lease.
All five operating wells on the Thompson Lease are currently producing from the lower zone of the Iona Hickey conglomerate. An upper zone is locally present along with additional hydrocarbon bearing formations including the Caddo limestone and the Cummings conglomerate, which in this area have historically been oil bearing formations. There may be potential to produce oil from these zones following the depletion of the currently productive gas horizons. Depletion of the gas horizons is expected to take several years.
The Company recently filed its financials and MD&A for the period ended June 30, 2014. Oil and gas revenues were Cdn$178,300 for the quarter ended June 30, 2014, an increase of 68% over the same quarter of 2013. Operating oil and gas income for the same period rose to Cdn$144,000, which is an increase of 66% over the second quarter of 2013. For the first six months of 2014 oil and gas revenues were Cdn$350,300, an increase of 153% over the same six months of 2013. Similarly, operating oil and gas income in the first half of 2014 rose to Cdn$220,300, an increase of 122% over the same period in 2013. For the first time in the Company's recent history, it reported positive cash flow from operating activities. This amounted to Cdn$88,000 in the first half of 2014 (first half of 2013 generated negative cash flow from operations of Cdn$113,500).
"We continue to be pleased with the results from Texas, especially on the Thompson Lease, where there are now 5 wells in production and a 6th well scheduled to come on line in September. With gross gas sales steadily increasing in 2014, the Company is well positioned to further develop cash flow and we are actively looking for additional resource assets and opportunities," states Gary Lohman, President and CEO of Canuc.
Canuc is a junior natural resource company that is active in the oil and gas sector in Texas and will be expanding its activities in 2014 and 2015.
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This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenues and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Annual Reports.
CONTACT: For Further Information: Gary Lohman, President & CEO 416-867-1300Source:Canuc Resources Corporation