Canacol Energy Ltd. Provides Gas Sales and Operational Update

Source Press Release
Company Canacol Energy Ltd. 
Tags Strategy - Corporate
Date May 03, 2019

Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following gas sales and operations update.

Q1 Gas Sales Average 123 MMscfpd with Operating Netbacks of US$ 4.03 / Mcf

Natural gas production for the first quarter of 2019 averaged 123 million standard cubic feet per day (“MMscfpd”) with an average realized sales price of US$ 4.97 / thousand standard cubic feet (“Mcf”), and an operating netback of US$ 4.03/Mcf.  This is the fifth consecutive quarterly increase in the Corporation’s achieved natural gas netback.

Nelson 7 Encounters 221 Feet of Net Gas Pay, Accordeon 1 Exploration Well to Spud May 11

The Nelson 7 development was spud on April 1, 2019 and reached a total depth of 9,300 feet measured depth on April 21, 2019.  The well encountered 56 feet true vertical depth (“ft TVD”) of net gas pay in the shallow Porquero sandstone reservoir with average porosity of 23%, and 165 ft TVD of net gas pay in the Cienega de Oro sandstone reservoir with average porosity of 18%.  The well has been cased and will be completed by a workover rig prior to being placed in permanent production within the next 3 weeks.

The drilling rig is currently being mobilized to the Acordeon 1 exploration well location.  The Acordeon 1 well is targeting prospective gas charged reservoirs with both the CDO and Porquero reservoirs, and is anticipated to spud on May 11, 2019.  The well will take approximately 5 weeks to drill, complete and test.

Promigas Expansion Project on Schedule for June Completion

Work on the Jobo to Cartagena pipeline expansion by Promigas S.A. remains on schedule for a June 2019completion date, at which time Canacol shall receive an additional 80 MMscfpd of transportation capacity, which is anticipated to lift gas sales to approximately 215 MMscfpd.

The Corporation will provide regular updates as they become available.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd