Basic info on recent land acquisitionThe blocks Canacol secured are in the Upper Magdalena Valley. According to the auction's website:
In Upper Magdalena Valley Basin there are 38 productive oilfields, as well as numerous oil seeps.
A significant volume of oil remaining reserves can be found in structural traps related to sub-thrusts and stratigraphic traps. Similarly, the development of new ideas associated with unconventional plays can provide additional reserves to the basin.
The exploration potential of the Upper Magdalena Valley Basin is estimated between 1400 MBO (high) and 550 MBO (low).
Heavy to normal oil predominates in the basin, varying between 12° and 35° API. A high percentage of heavy oils have been found in reservoirs of all ages. There is no direct relationship between API gravity and the reservoir depth. The oils in this basin are of regular to good quality with tendency to low API gravities and high sulfur content, due to biodegradation processes.
Looks promising - I doubt at this stage in the game that Canacol was willing to throw away $50 million on a whim. It would be nice to hear from the company in terms of why they wanted these particular blocks - or if anyone has insight, fire away!