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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 practicalguyon Aug 29, 2014 6:47pm
206 Views
Post# 22891772

RE:RE:RE:RE:RE:Takeover target?

RE:RE:RE:RE:RE:Takeover target?I tell you what, show me one instance where an NOC or supermajor bought shale land after one or two exploration wells.  Better yet, look at CNE's shale properties.

VMM2 - Exxon, one drill that is delayed by about a year from its original schedule.  If it gets down to the Rosa Blanca, it will take over a year to test the 5 separate shale zones in the well (Rosa Blanca, Tablazo, Simiti, Salto and La Luna) and that is after the geochemistry is complete. 
VMM3 - Shell & Conoco, one strat well to do the geochemistry, but no test.  Generally it takes a minimum of 6 months to do the geo chemistry. 
Santa Isabel - no stated plans from Conoco, but likely waiting for info from VMM2.

in summary, by the end of 2015, they may have the results from the first completion in the VMM2 well with Exxon, but I wouldn't hold my breath. 

This is is why CNE is smart.  They made it so they didn't have any shale commitments and have reasonable working interest.  In the meantime, they are successfully chasing the conventional reservoirs.  Compare this to BOE, who went all in on the shale, blew all their money and now have to sell out.  This is the difference between good management, like Mr Gamba, and poor management, like BOE has.
Bullboard Posts