Canacol Energy (TSX:CNE, StockForum), a Calgary-based firm engaged in petroleum and natural gas exploration and development operating in Columbia, Ecuador, Brazil, Guyana and Peru, announced today the company had received results from its second flow test from the Leono 2 appraisal well located on the LLA23 Exploration and Production (“E&P”) Contract in the Llanos Basin of Columbia.
According to the news release, Canacol now possesses an 80% working interest in the LLA23 contract with Petromont Columbia SA Sucursal Columbia retaining the remaining 20%.
On January 11, 2014, Leono 2 well was spudded and reached a final depth of 12,610 ft of measured depth on January 16 with 121 feet of net oil pay within the C7, Barco, Gacheta and Ubaque reservoirs.
Canacol intends to leave the well in production from the Barco pending approval from the Agencia Nacional de Hidrocarburos and it also expects to begin drilling of the Pantro 1 exploration well to be spudded in mid-March 2014 with updates when relevant information becomes available.
Canacol Energy was in the news recently when the company reported an 89% increase in production year-over-year during Q2 2014.
Shares rose 3.44% on the news to $6.91 per share.
Currently there are 89.1m outstanding shares with a market cap of $616.0 million.