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 Crotchon Oct 23, 2013 5:26pm

134 Views

Post# 21842813

RE:RE:RE:Netbacks avg

gas61di56 wrote: The reason for CNE being in the 30 to 40$ netbacks is that the gas production is not as lucrative
as their oil production. As we go the oil production ratio becomes much higher than the gas production so does the netbacks...As the gas production moves up, their profit will improve
also cause no real cash input is needed to increase their production.

That's my understanding of the situation for all it is worth.

GLTA

G

Their oil netbacks aren't that great either. Rancho Hermosa: 23 bucks, Labrador: 59 bucks, Ecuador: 39 bucks. Still low returns, no matter which way you slice it. As we know, Labrador will be short lived, so if they want to continue generating decent revenue CNE will need to start pumping oil from fields that are have less punishing tariffs/production agreements.

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