from TDTD Investment Conclusion
We like Canacol’s long-life reserves and resources with limited exposure to global oil prices in Colombia gas and Ecuador oil assets. These assets now account for over 70% of the asset value we model in our Fully-risked NAVPS. We also like management’s track record of value creation since 2011 through business-development initiatives and follow-up execution of drilling. We expect Canacol to continue growing its asset base in Colombia and other countries in Latin America. We expect generally positive exploration drilling results to continue. We believe that Canacol’s growing gas resource base in the Lower Magdalena Basin is increasingly likely to make it a take-out target, and that Canacol’s exposure to shale resource potential in Colombia and partnership with three majors (ExxonMobil, Shell, and ConocoPhillips) position it to attract investment for long-term shale potential when interest in that play re-awakens.
ciao vito