Canuc Announces LOI for Acquisition of Oil Assets
www.canucresources.ca
FOR IMMEDIATE RELEASE TSX-V: CDA | CNUCF | WKN: A14 ZX4
May 17th, 2018 Shares Outstanding: 50,134,150
ISIN: CA1389093040
Canuc Announces LOI for Acquisition of Oil Assets
Canuc Resources Corporation (“ Canuc” or the “Company”) (TSX-V: CDA) is pleased to advise that it
has signed a letter of intent (LOI) to acquire Full Circle Energy Ltd. (“Full Circle”), an Ontario
Corporation. Full Circle’s principal corporate assets consist of 6 sections of undeveloped oil prospective
acreage in southwest Saskatchewan, and a Farmin ag reement that references a further 6.3 contiguous
sections of adjacent land (see Figure 1).
Full Circle’s Farmin agreement considers drilling a well to earn a 100% working interest (WI) in 1.5
sections of land. An additional 4.8 sections make up an Area of Mutual Interest (AMI). The AMI lands
can be developed 75%/25% in favor of Canuc.
Canuc will acquire Full Circle on a share exchange basi s with a valuation which will be determined by an
Independent Consulting (Petroleum) Engineer. Seismic surveys and subsurface geological mapping on the
sections held by Full Circle indicate potential fo r the Upper Shaunavon formation, a well-known oil
producing horizon in this area. The Shaunavon stre tches over a distance of 40 miles in a northeast-
southwest direction and at its northern end to date has yielded a total of 4.4 million barrels of oil. Full
Circle’s lands are at the south end of this trend and offset a well that produced a total output of 125,000
barrels.
The Company believes that the acquisition represents a great opportunity to enhance existing cash flow
from oil and gas operations. The opportunity is de-ri sked by offsetting production at an existing well
while commercial risk can be further reduced by offtake avenues already identified. The situation
represents an opportunistic acquisition prospect that can be highly accretive to shareholder value. Year
round access to producible acreage can be secured in the oil industry friendly jurisdiction of
Saskatchewan, Canada.
Figure 1. Full Circle lands (6 sections), Farmin lands (1.5 sections) & Mutual Interest lands (4.8 sections)
www.canucresources.ca
Management is of the opinion that this opportunity re presents an important step in the pursuit of cost
competitive assets with the potential to provide signi ficant cash flow. This will enable the Company to
continue to develop current assets, and to potentiall y acquire further assets in the natural resource space.
Canuc intends to drill the first well in the next six months. Further wells will be commenced or spudded
shortly thereafter pending results of the first well.
About Canuc
Canuc is a junior resources company exploring the San Javier Silver-Gold Project in Sonora State,
Mexico. The Company also generates cash flow from natural gas production in Central West Texas, where
Canuc has an interest in nine producing gas wells and has rights for further in field developments.
For further information please contact Canuc Resources Corporation:
(416) 548 – 9748
Disclaimer and Forward-Looking Statements
Forward-Looking Statements: 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-look ing statements. The forward-lookin g 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 fo rward-looking statements incl ude changes in the prevailing
price of gold, the prevailing price of natural gas, the Canadian-United States exchange rate, amount of gas
produced 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 the Company’s annual
financial statements and MD&A.