Calgary, Alberta — January 7, 2026 — Leads & Copy — Tuktu Resources Ltd. will focus on its Monarch oil play as part of its 2026 corporate strategy, according to a news release.
The Calgary-based junior oil and gas producer (TSXV: TUK) plans to improve well targeting using seismic data, pursue low-cost well workovers, cut overhead, and evaluate the divestment of non-core assets.
Tuktu’s technical team will focus on the Monarch oil play to increase shareholder value. The company aims to improve well accuracy, lower operating costs, and unlock additional production from existing wells by narrowing its focus and applying a data-led approach.
Planned steps include:
- 2D seismic review and interpretation to understand the play trap and trend system.
- Acquiring available 3D seismic data.
- Core rock studies and petrophysical work to build a geological model of the Banff and Big Valley system.
- Identifying potential workover candidates and recompletions in existing wells.
- Identifying drilling opportunities.
- Reducing G&A expenses and operating costs.
- Evaluating the divestment of non-core assets.
- Reducing corporate ARO.
- Evaluating assets that complement the Monarch asset.
- Broadening internal policies, including EHS and ESG policies.
- Fostering internal and external communications.
Tuktu is advancing its Monarch asset by integrating new and existing data and deploying available technology.
The company’s discovery well at 4-20-010-24W4 in the Alberta Deep Basin continues to produce approximately 78 bbl/d and has produced over 107,000 bbl in aggregate since being placed on production over a year ago. Tuktu has an 80% working interest in this well.
The offset horizontal well at 16-20-010-24W4, drilled in the first quarter of 2025, is currently shut-in and will likely remain shut-in indefinitely.
As disclosed in the Company’s press release dated November 20, 2025, Tuktu identified and implemented an optimization program, stabilizing average production at approximately 490 boe/d (60% natural gas, 40% crude oil).
A geoscience review of data from the 4-20-010-24W4 vertical discovery well and subsequent drilling of the horizontal 16-20-010-24W4 in 2025 indicate the key pay zone was missed in the horizontal well and additional work is required to derisk the play before further drilling capital is spent. Initial findings suggest this oil accumulation has a stratigraphic control which could be mapped by seismic data. In house seismic (2D) is being used to identify the trap and map the extent of the clastic reservoir. Work will continue using 3D seismic and all available well data to create a depositional model and an exploration play trend map.
Tuktu’s technical team has reviewed the offset horizontal well and evaluated its lack of performance as compared to the Company’s discovery well and determined the following:
- The well penetrated the Banff porous interval but drilled out of the reservoir.
- Two 2D seismic lines of high-quality data were reprocessed, the well was landed properly but drilled away from the seismic control.
- Drill cuttings review from 16-20-010-24W4 was inconclusive.
- Drilling operation reached planned depth but was complicated by the drill design and failure to utilize comprehensive logging tools.
- Historical drilling in the Monarch area uses gas detection as gas markers and in the most recent horizontal drill, no gas was detected outside of the landing point or heel of the well.
- Completion operations were ineffective as verified by tracer data, frac modeling and poor inflow/production.
- The artificial lift equipped on the well was a high volume “electric submersible pump” (ESP). Results observed during flowback of the initial completion suggest this equipping decision was improper.
The well is currently shut in and unproductive with the current system in place.
For additional information about Tuktu please contact: Jeremy Hodder, President and Chief Executive Officer (phone 403-540-6502); or Kathleen Dixon, Chair (phone 403-200-6633)
Source: Tuktu Resources Ltd.
