Canacol Energy Ltd T.CNE

Alternate Symbol(s): CNNEF

Energy Oil & Gas E&P

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.

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Canacol Energy Ltd

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Comment by crackiedogon Jan 17, 2011 10:15am

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Post# 17983071

RE: RE: News Release

This is something I am confused about as well. You have to remmeber that when they tested RH6, I believe, they tested 3 different resevoir zones to get the 12,000 BOPD flow rates. Since then they have only tested one zone for each new well:
RH6   - Los Cuervos - Barco 6,206 bopd
            -  Ubaque - 3,340 bopd
            -  Guadalupe - 3,302 bopd
            - Total - 12,847 bopd

RH7    - Los Cuervos - Barco 5,019 bopd

RH8    - Los Cuervos - Barco 3,927 bopd

RH9    - Los Cuervos - Barco - did not test - only 4 ft of pay?
            - Mirador - 6,750 bopd

How come they have only tested one zone per well for RH 7,8,9? In all of the news releases the total net pay zones are comparable in size although they do fluctuate from zone to zone. Is it because they don't think the other zones are economical? Is it technical reasons or is it just for "scheduling" purposes. Maybe they plan to come back and tap into these other zones as the producing ones begin to deplete? I don't know myself. Anyone with a little more technical knowledge care to comment?

Crackiedog

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