Canacol Energy Ltd. Provides Production Operations Update
CALGARY, ALBERTA -- (Marketwire) -- 03/07/13 -- Canacol Energy Ltd.
("Canacol" or the "Corporation") (TSX:CNE) (BVC:CNEC) is pleased to
provide an operations update related to its production activities in
Colombia and Ecuador.
Average net production before royalty for the months of January and
February 2013 was 7,843 barrels of oil equivalent per day ("boepd").
Average crude oil production was 4,835 barrels of oil per day
("bopd") of which only 127 bopd was tariff production from the Rancho
Hermoso field. Average gas production from the Nelson field was 3,008
boepd (17.1 million standard cubic feet per day)("mmscfpd"). Current
net corporate production before royalty as of March 4, 2013 was 8,249
boepd, which consists of 5,260 bopd of crude oil and 3,169 boepd (18
mmscfpd) of gas. All tariff producers at the Rancho Hermoso field
have been successfully converted to net royalty interest (non-tariff)
producers. The Corporation reiterates its production guidance of
between 7,500 and 8,500 boepd of net production before royalties for
The Corporation has contracted a drilling rig from Petrex and plans
to spud the first of 2 new wells, Labrador 2, at its Labrador
discovery on the LLA23 Exploration and Production ("E&P") contract,
starting the third week of March 2013. The second well, Labrador 3,
will be drilled immediately after the Labrador 2 well is completed.
The discovery well at Labrador, the Agueda 1 ST, produced an average
of 1,178 bopd of net production before royalty for the months of
January and February 2013 with an average water cut of less than 1%.
Upon completion of the drilling of the Labrador 3 well, the
Corporation plans to drill the Leono exploration prospect, which is
located along the same fault trend in the northern part of the
contract. The Corporation holds an 80% operated working interest in
the LLA23 E&P contract.
In Ecuador the Pardaliservices S.A. consortium is planning to spud
the first of 5 new production wells, the Secoya 44 well, in mid-March
2013. This well will target proven undeveloped oil reserves in the
prolific U and T sandstones within the Libertador oil field. The
consortium has also completed 3 workovers of existing wells, and
plans to recomplete an additional 9 existing production wells
throughout the remainder of 2013. The Corporation holds a 25% working
interest in the Paradaliservices S.A. consortium.
Further to Canacol's news release on February 27, 2013 announcing the
farm-out of its Santa Isabel E&P contract to ConocoPhillips, the
Corporation has received 50% of the bonus related to the farm-out, or
Canacol Energy is an exploration and production corporation with
operations focused in Colombia and Ecuador. The Corporation's common
stock trades on the Toronto Stock Exchange and the Colombia Stock
Exchange under ticker symbol CNE and CNEC, respectively.
This press release contains certain forward-looking statements within
the meaning of applicable securities law. Forward-looking statements
are frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions "may"
or "will" occur, including without limitation statements relating to
estimated production rates from the Corporation's properties and
intended work programs and associated timelines. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking statements. The Corporation cannot assure that actual
results will be consistent with these forward looking statements.
They are made as of the date hereof and are subject to change and the
Corporation assumes no obligation to revise or update them to reflect
new circumstances, except as required by law. Information and
guidance provided herein supersedes and replaces any forward looking
information provided in prior disclosures. Prospective investors
should not place undue reliance on forward looking statements. These
factors include the inherent risks involved in the exploration for
and development of crude oil and natural gas properties, the
uncertainties involved in interpreting drilling results and other
geological and geophysical data, fluctuating energy prices, the
possibility of cost overruns or unanticipated costs or delays and
other uncertainties associated with the oil and gas industry. Other
risk factors could include risks associated with negotiating with
foreign governments as well as country risk associated with
conducting international activities, and other factors, many of which
are beyond the control of the Corporation. Other risks are more fully
described in the Corporation's most recent Management Discussion and
Analysis, which is incorporated herein by reference and is filed on
Canacol Energy Ltd.
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