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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
Post by practicalguyon Jun 24, 2014 11:23am
179 Views
Post# 22689433

Production

ProductionThe reason everyone is nervous is because only a company that is hiding something goes from monthly production updates to one update in 6 months.  This was apparent with Q3 results being so low.  I mean how do you start off the year at 12.2 mboed, add a 2400 bopd well half way through the quarter and end up averaging 10.9 mboed.

Gamba said they were producing 13,000 boed in late Feb.  they have tested over 4000 bopd and bought almost 800 bopd since and are now at 13,800 boed.  Finally, they are at 13,800 boed now and are drilling 10 LLA23 wells (9 net), 6 VMM2 wells (2.4 net), all of which should add well over 10 bopd, and we are going to exit at 18 mboed.
 
So the question is, are there regulatory delays? Are ther facility constraints? Are there reservoir issues?  CNE has to let shareholders know why the production is so disappointing.

Everyone keeps on saying they are sandbagging, but when you sandbag, you do better than what you said.  
Bullboard Posts