Canacol Energy Ltd. Announces Revised 2024 Capital Program, Comments on 2024 Guidance and Provides Drilling Update
September 20 2024 - 7:00AM
Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX: CNE;
OTCQX: CNNEF; BVC: CNEC) announces that it has revised its 2024
capital program, comments on 2024 guidance and provides drilling
update.
Revised 2024 Capital
Program
The Corporation has revised its capital program
to now drill a total of 11 wells in 2024, with an estimated capital
spend of $138 million. The 11-well program includes five
exploration wells, and six development/appraisal wells. Canacol’s
original 2024 capital budget, as announced on February 5, 2024, had
included a range of $138 million (four exploration wells and three
development/appraisal wells) to $151 million (four exploration
wells and five development/appraisal wells). Drilling program
efficiency initiatives have contributed significantly to planning
for increased drilling activity without increases in total capital
program costs.
The Corporation currently anticipates 2024
EBITDA to be in the mid to higher range of its previously announced
guidance of $250 million to $290 million, with its natural gas and
oil sales volumes anticipated to average approximately 167 million
cubic feet equivalent per day.
The revised 2024 capital program has been
designed to achieve corporate production and reserve addition
targets. To date the Corporation has drilled six wells, which
include five successful wells that are currently on production
(Clarinete-10, Pomelo-1, Chontadura-1, 2 and 3) and the
unsuccessful Cardamomo-1 well.
Cardomomo 1 Exploration
Well
The Cardomomo 1 exploration well, located on the
VIM5 Exploration and Production (E&P) contract, was drilled to
a total depth of 11,591 feet measured depth targeting the Cienaga
de Oro Formation. The well encountered 203 feet true vertical depth
of net porous sandstones within the CDO with non commercial amounts
of natural gas. The Cardomomo 1 well has now been abandoned.
Go Forward Drilling Program
For the remainder of 2024, the Corporation plans
to drill 3 appraisal wells in producing gas fields and 2
exploration wells.
The Nispero 2 appraisal well will target gas
bearing sandstones of the CDO Formation within the Nispero gas
field which the Corporation discovered in 2016. The Corporation
anticipates spudding the well in early October 2024, with the well
entering production in late October 2024.
The Natilla 2 exploration well is targeting a
large natural gas prospect within the SSJN7 E&P contract. The
primary target of the Natilla 2 exploration well are sandstones of
the CDO Formation, with secondary sandstone targets in the
overlying Porquero Formation. The Corporation anticipates spudding
Natilla 2 in early October 2024 and anticipates that the well will
take approximately 2 months to drill.
The Siku 2 appraisal well will target gas
bearing sandstones within the CDO Formation in the Siku and Oboe
gas fields, which the Corporation discovered in 2016. The
Corporation anticipates spudding the well in early November 2024,
with the well entering production in late November 2024.
The Kite 1 exploration well is targeting
sandstones of the CDO Formation in a prospect located between the
Palmer gas field discovered in 2014 immediately to the south, and
the Pomelo and Chontaduro gas fields discovered in early 2024
immediately to the north. The Corporation anticipates spudding the
well in early October 2024, with results by late October 2024. If
successful, the Kite 1 well will be immediately tied into
production.
The Lulo 3 appraisal well is targeting gas
bearing sandstones of the CDO Formation within the Lulo gas field
discovered in early 2023. The Corporation anticipates spudding the
well in early December 2024, with the well entering production in
late December 2024.
About Canacol
Canacol is a natural gas exploration and
production company with operations focused in Colombia. The
Corporation's common stock trades on the Toronto Stock Exchange,
the OTCQX in the United States of America, and the Colombia Stock
Exchange under ticker symbol CNE, CNNEF, and CNE.C,
respectively.
Forward-Looking Information and Statements
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”,
“target”, “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
(“MD&A”) and Annual Information Form, which are incorporated
herein by reference and are filed on SEDAR at www.sedar.com.
Average production figures for a given period are derived using
arithmetic averaging of fluctuating historical production data for
the entire period indicated and, accordingly, do not represent a
constant rate of production for such period and are not an
indicator of future production performance. Detailed information in
respect of monthly production in the fields operated by the
Corporation in Colombia is provided by the Corporation to the
Ministry of Mines and Energy of Colombia and is published by the
Ministry on its website; a direct link to this information is
provided on the Corporation’s website.
For more information please contact:
Investor Relations
South America: +571.621.1747 IR-SA@canacolenergy.com
Global: +1.403.561.1648 IR-GLOBAL@canacolenergy.com
http://www.canacolenergy.com
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