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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 Nov 18, 2011 1:56pm
283 Views
Post# 19249314

RE: RE: Carrao same as Monterrico?

RE: RE: Carrao same as Monterrico?

I've tried finding any mention of Carrao anywhere - and there's no material info on them. They are listed in an OSC bulletin, along with being part of a portfolio (https://www.qwestfunds.com/products/flow-through/2011IIpdf/prospectus.pdf) fund.

What's odd is the website for Carrao looks like it was created Nov 6, 2011...bizarre.

It's not listed on an exchange, so I assume they are privately held shares (not sure how common that is).

Monterrico's participation in LLA 23 appears to be 39% - maybe they are the owner, and only part-operator? Is that possible?

The middle magdela blocks are similar: VMM3 - 39% participation, but they are not the operator (integral de servicos tecnicos is), VMM2 - 40% participation, but operated by Vetra Group, and Saint Isabel is 100% with Green Power Corp the operator. I believe Green Power Corp is Petrolera Monterrico...based on this:

https://gpower.com.co/green-power.pdf

VMM-3 was sold (under approval) to a "major oil producer" in September. According to an NR back in August, Petro-America (PTA) sold it's stake in VMM-3 to Shell:

Petroamerica Oil Corp. ("Petroamerica" or the "company") (TSXV: PTA), the Canadian oil and gas junior, has reached an agreement with Shell Exploration and Production Colombia GmbH (SEPC) Sucursal Colombia ("Shell E&P Colombia"), an affiliate of the Royal Dutch Shell group of companies, to sell its entire 50% contractual rights in the VMM-3 exploration block, in the Middle Magdalena Valley of onshore Colombia.

Under the terms of the agreement to acquire Petroamerica's 50% contractual rights, Shell E&P Colombia will commit to the following: 1) pay Petroamerica a cash fee of US$7.0 million, and 2) replace the current US$1.8 million bank guarantee for the minimum commitments with the Colombian National Hydrocarbon Agency ("ANH"), under the terms required per the VMM-3 E&P Contract ("Contract"). Petroamerica's contractual obligations amounting to a carry of the first phase exploration program of 2D seismic and one exploratory well to a cap of US$10.7 million would be cancelled upon closing of the transaction with Shell. The VMM-3 block covers an area of 83,311 acres and the cash component of the transaction translates into a unit value of US$168 per acre

I have no idea what this means - is it a "shell" game (pardon the pun), or are there different levels of participation in each of these blocks of land in Colombia?


It's all very mysterious to me, but I wonder if Carrao was used as a front to buy up some of Monterrico's holdings, as that company apparenlty wants to focus on renewable energy instead of it's oil properties.

Anyone care to clarify the difference between working interest and participation?

Bullboard Posts