CALGARY, Alberta, Feb. 08, 2022 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following information concerning its January 2022 natural gas sales, the Toronja 2 development well, near term drilling plans, and the Corporation’s normal course issuer bid.
Gas sales averaged 170 MMscfpd for January 2022
Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were approximately 170 million standard cubic feet per day (“MMscfpd”) for January 2022.
Toronja 2 development well encounters 29 feet of net gas pay
The Toronja 2 development well was spud on January 17, 2022 and reached a total depth of 6,899 feet measured depth on January 23, 2022. The well encountered 29 feet true vertical depth of net gas pay with an average porosity of 28% within the primary Porquero sandstone reservoir target. The Toronja 2 well was tied into the Toronja production manifold and has been placed on permanent production.
Drilling rig mobilizing to drill Carambolo 1 exploration well
The rig is currently mobilizing to drill the Carambolo 1 exploration well targeting gas bearing sandstones within the Cienaga de Oro sandstone reservoir. Carambolo 1 is anticipated to take approximately 4 weeks to drill, complete and test. Following the completion of Carambolo 1 the rig will be mobilized to spud the Arandala 3 development well, which the Corporation anticipates spudding in March 2022. The Arandala 3 well will also take approximately 3 weeks to drill, complete, and tie into permanent production.
Normal course issuer bid
During January 2022, the Corporation repurchased 5,307,700 Common Shares for CAD$ 3.15 per share under its normal course issuer bid (the “NCIB”), relying on the block purchase exemption under the NCIB rules.
The purchase was made from an arm’s length third party via the TSX Exchange. Canacol’s management is of the view that Canacol's shares are trading at a significant discount to their net asset value. Canacol is committed to purchasing its shares under its NCIB whenever they trade at a relevant discount to their net asset value, provided that Canacol has sufficient liquidity.
About Canacol
Canacol is a natural gas exploration and production company with operations focused in Colombia. The Corporation's common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C, respectively.
https://www.globenewswire.com/news-release/2022/02/08/2380772/0/en/Canacol-Energy-Ltd-Provides-Sales-Drilling-Operations-and-Share-Buyback-Update.html