Canacol Energy Ltd. (TSX: T.CNE, Stock Forum) announced the results of its Labrador two well on the Labrador discovery, located on the LLA23 Exploration and Production Contract in the Llanos Basin of Colombia.
The cormany has an 80% operated working interest in the LLA23 contract, with Petromont Colombia S.A., Sucursal Colombia holding the remaining 20% interest.
According to the Canacol Energy press release, the Labrador two well encountered 59 feet of oil pay within the middle and lower Gacheta, and Ubaque reservoirs.
The Labrador two well was spud on April 11, 2013 and reached a total depth of 10,601 feet measure depth on April 29, 2013.
The Lower Gacheta will be perforated and brought on to long-term production within the following two weeks.
Meanwhile, the drilling rig will remain on location and commence the drilling of the Labrador three well, also targeting the Lower Gacheta reservoir in a position along the western flank of the structure.
The Labrador three well is anticipated to commence drilling in approximately two weeks.
Canacol is an exploration and production company with operations focused in Colombia, Ecuador, Brazil and Guyana.
On Thursday, Canacol was trading at $2.55 a share. The company had a market cap of $220.6 million, based on $86.5 million shares outstanding. The 52-week high and low was $8.10 and $2.31 respectively.