SPV - RBC CommentsCanacol Energy (CNE.TO): 2017 Outlook Yesterday Canacol released its 2017 production and capex guidance. This is broadly as expected with FY17 production to average between 18-19,000boe/d and capex of $89m. The key events through 2017 include five exploration wells and increased offtake capacity with completion of a 40mmcfd pipeline by year end (takes overall offtake to 130mmcfd).
However funding of the SPV that will own the pipeline is still to be finalised. : The Special Purpose Vehicle that plans to add 40mmcfd of capacity by YE17 has already placed an order for 82km pipe, and continues to progress the purchase of the right of way for the pipeline. Excavation and installation of the pipeline is expected to commence in September with completion by November and first gas on December. Funding of the $60m project is still to be finalised with Canacol potentially participating.