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Canacol Energy Ltd T.CNE

Alternate Symbol(s):  CNNEF

Canacol Energy Ltd. is a Canada-based natural gas exploration and production company with operations focused on Colombia. The Company’s production primarily consists of natural gas from the Esperanza, VIM-5 and VIM-21 blocks located in the Lower Magdalena Valley basin in Colombia. The Company’s production also included crude oil from its Rancho Hermoso block in Colombia (Colombia oil). It supplies approximately 17% of the country’s gas needs and more than 50% of the Caribbean Coast’s gas demand. Its gas fields which produce from the Cienaga de Oro and Porquero proven reservoirs are connected to its central Jobo gas processing and treatment facility through more than 169 kilometers of flow lines, mainly flexible steel flow lines. It operates over 1.5 million net acres in 14 exploration and production contracts in Colombia, with 11 of these contracts focused on exploring for and developing natural gas. These blocks are all located in the Lower & Middle Magdalena Basins of Colombia.


TSX:CNE - Post by User

Bullboard Posts
Comment by Crotchon Oct 22, 2010 12:09pm
397 Views
Post# 17598594

RE: Reasons for the "parabolic" rise in CNE

RE: Reasons for the "parabolic" rise in CNE5) The steam injection success may have slipped under the wire on the bullboards (except one poster here who kept pointing it out, can't remeber who right now, he opened my eyes that's for sure) but the people in the know are paying close attention to it.


I made note of this a couple of times yesterday. I thought it was the most valuable part of their NR for a few reasons. The neighbouring blocks of land apparently have the same geological/carbon composition as Capella - and those are 100% owned by CNE. Steam injection works - not only does it work - it has the potential to triple production. And finally, the doubling of reserves did not include the impact steam injection has on vertical wells. Just imagine how Capella is going to look by Q2 once CNE has a few steam-injected pumps/wells going. It might have taken most of yesterday for people to fully digest what the NR actually said - it came across conservative (purposely I'm sure) - but the actual meaning can be measured in the hundreds of millions of dollars - or shall I say BILLIONS!

In my opinion, I now think the the heavy oil production potential is going to factor in signifcantly with the SP in the short-mid term - maybe more so than RH and Guyana. I'm no expert though!
Bullboard Posts