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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 Dec 01, 2011 3:04pm
207 Views
Post# 19284199

RE: Hope this is readable

RE: Hope this is readable

The MD & A is a little more forthcoming in details, then the presentation is, although I'm not sure which one you are supposed to take as the "truth".


Cor 11, and Cor 19 - only seismic data for 2012.

Cedrela - 2 wells through "mid 2012"
Sangretoro - 2 wells through "mid 2012"
Andaquies - 2 wells (no time frame mentioned)

RH 13 and RH 14 are 2011.
RH 15 and RH 16 are 2012.
(both confirmed in the presentation)

RH gas produciton comes on line in January.

Takutu - looking to extend exploration contract until May 2012 in order to drill the well there


All in all, a much more convservative approach to 2012, compared to what we saw predicted for 2011. I wouldn't say it's dead money, or that it's going to hit $5 as our resident basher/pumper duo are claiming. A hit at Agueda would be a good start to Q1.

Here's a potential problem. Let's say they get good numbers at Agueda 1...then what? I'm guessing they'll want to ramp up exploration/production in this block because it's more valuable. In order to do so, do they burn their cash in hand (hopefully), or will we see more financing? I'm hoping with more conservative guidance, their expenses are going to go way down...but who's to say at this point.

If anyone gets something more than cryptic replies from IR, let us know!

Bullboard Posts