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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 Sep 10, 2014 2:33pm
185 Views
Post# 22924186

Flow Tests Etc.

Flow Tests Etc.At some point, especially when you have 6 rigs running, flow tests should become less and less important, therefore not material at all.  When you see all the begging for news releases on this board, it reminds me of a heroin addict - they are just desparate for the next fix.

If you want, I could do a fill in the blank news release for you.

(Insert name of well) was spud (fill in date) and reached TD (fill in date).  There was good oil and gas shows throughout the perspective reservoirs.  There was (fill in amount between 40' and 100') of net pay in (fill in number of reservoirs - 4 or 5).  The well was tested in the (fill in zone) and tested at (fill in production rate - 800 to 1800 bopd) using a (fill in the artificial lift type and operating parameters) with a (fill in the water cut %) which was declining during test and is likely the result of drilling and completion operations.  The well will be put on long term test from the (fill in formation), subject to approval from the ANH.

Fine print stuff including - TESTS ARE NOT INDICATIVE OF LONG TERM PRODUCTION OR RESERVES.

For an E&P company the size of Canacol, reserves are the most important, followed by production, cashflow etc, followed a long way back by well tests.  CNE, with the exception of the gas, is developing properties, so all the wells are going to produce oil, and likely at the rates that other wells in the area are producing at.  It was different a year ago when they were exploring, so CNE has to change with the stage they are at as a company.

This means - stop the hype outside news releases and presentations, update production EVERY month, even if it is bad, and stop putting out fluff news releases everytime you test a well.  I like the quote from John Madden about endzone celebrations.  He said that if you want to impress someone, you should act like you have been there (in the endzone) before.

Hopefully CNE realizes that the fluff test results news releases is just a quick fix and doesn't last long and the fluff junkies will want another fix.  Time for CNE to act like a big boy company.
Bullboard Posts