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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

Comment by Quintessential1on May 02, 2022 3:56pm
214 Views
Post# 34648798

RE:RE:RE:RE:RE:No exposure to increasing NG prices

RE:RE:RE:RE:RE:No exposure to increasing NG pricesThe share price is making it hard to lay off this one.

A high yield isn't the be all end all and they have to be able to make money and pay debt.

Even if they hit more gas in their new wells do they have the extra capacity to sell enough to make it worth while?

How much extra capacity do they have?

The take or pay hancuffs them with global gas price increases so the only way they make more is buy selling more.  

But, are they subject to royalty fees where if the price of gas goes above their contracted price they are actually net losing money?  Given the global price of NG right now and in the future, if they are subject to paying increased royalties, they are in trouble.

GLTA


downwithdotcom1 wrote: ..starting to NIBBLE a bit.at these prices....sold out near $4 cause i needed the cash..pipeline venture, increased gas sales plus new exploration wells may set up this company for future success..see what happens..dwdc


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