Canacol Energy (TSX:CNE, StockForum), a Calgary-based firm engaged in petroleum and natural gas exploration and development in Columbia, Ecuador, Brazil, Guyana and Peru, provided an update regarding its testing operations from the La Luna Formation in the Mono Arana 1 exploration well pursuant to the VMM2 Exploration and Production Contract which covers the Middle Magdalena Basin in Columbia.
According to the news release, “Canacol has a 20% non-operated working interest in this Contract, with ExxonMobil Exploration Colombia having a 70.1% working interest and Vetra Exploración y Producción Colombia having the remaining 9.9%.”
It went on to detail, “on January 24, 2013, the Mono Arana 1 exploration well encountered 230 feet ("ft") of net oil pay within the naturally fractured Cretaceous La Luna Formation.”
Two flow periods were completed at the La Luna naturally fractures reservoir with the second flow period producing a gross rate of an estimated 590 barrels of oild per day (“bpod”) during the last hour of the 24-hour flow period.
Canacol president and CEO, Charle Gamba, commented, “We are very pleased with the flow test results from the La Luna naturally fractured reservoir at the vertical Mono Arana 1 well. The flow test results from the La Luna in the Mono Arana 1 well demonstrate that the reservoir where it is naturally fractured is capable of good natural flow rates.”
Canacol was in the news recently when the company announced 6,140 BOEPD in new gas sales contracts at the end of February.
Shares rose 4.70% on the news to $7.35 per share.
Currently there are 89.2m outstanding shares with a market cap of $655.3 million.