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Canacol Energy Ltd (Alberta) 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, VIM-21 and VIM-33 blocks located in the Lower Magdalena Valley basin in Colombia. Its 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. The Company operates over 1.5 million net acres in 11 exploration and production gas contracts in Colombia, located in the Lower & Middle Magdalena Basins. Its natural gas processing and treatment facilities consist of three plants.


TSX:CNE - Post by User

Post by jmlguyon Jan 15, 2013 12:02am
447 Views
Post# 20837944

From today's Motley Fool

From today's Motley Fool

(I,too, posted this as many have put another poter on ignore. ) Around The World

As an adrenaline junkie, I add some hints of excitement by investing in companies that operate in countries with strong oil potential. For instance, I wrote an article about the Angolan players the other day, as Angola has become the second oil producer of Africa and is targeting the first position by 2015. This is how I stumbled upon Canacol Energy (TSX: CNE)that operates in Colombia and is awaiting game changer news from six different fronts:

a) The deal with ExxonMobil for its highly prospective VMM2 Block showed the first good results from Mono Arana 1 well and the drilling is still ongoing.

b) The company starts drilling its Santa Isabel Block (100% WI) that is adjacent to VMM2 and VMM3 Blocks that host La Luna and Rosablanca formations which are Colombia's analogue to the Eagle Ford formation holding 3.2M barrels and 2.4M barrels of oil respectively.

c) Canacol also got very good drilling news from its first well (Agueda-1, 80% WI) in Llanos 23 Block which is adjacent to the oil rich Rancho Hermoso. It is currently drilling aggressively this Block and more news will be released by February.

d) It is also currently drilling the Guarango-1 well (100% WI) at the Putumayo Basin targeting heavy oil-bearing reservoirs in the company's producing Capella heavy oil field which is one of Colombia's largest discoveries.

e) According to the Q3 2012 report, Canacol is currently working to sell its WI in the following contracts: LLA 10 (39% WI), Caño Los Totumos (51% WI), Morichito (15% WI) and Entrerrios (60% WI).

f) Canacol is currently working to farm out both its Brazilian and its Guyana assets. According to the Q3 2012 report, the company is in advanced negotiations with potential partners to farm-out 50% of its 100% WI in the REC-T-170 Block and its 70% WI in the Takutu Block.

Canacol boosted its 2P Reserves and its Ecuador fields are expected to see increased production in 2013 as the development program is executed

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