Canacol Energy Ltd. Provides Sales, Drilling Operations, and Share Buyback Update
Canacol Energy Ltd. reported an average natural gas sales of 188 MMscfpd for February 2022. The company announced the cased gas discovery from the Carambolo 1 well and is mobilizing a drilling rig to conduct a sidetrack at Chirimia 1, aiming to restore production from the Cienaga de Oro sandstone reservoir. Additionally, Canacol executed a normal course issuer bid, repurchasing 5,307,700 shares at CAD$ 3.15 each in January 2022, which may enhance shareholder value.
- Average gas sales of 188 MMscfpd for February 2022 indicate strong production.
- Successful repurchase of 5,307,700 shares could support stock price and enhance shareholder value.
- The Chirimia 1 well has been inactive since 2019 due to mechanical issues, posing production risks.
- Potential uncertainties in drilling outcomes and geopolitical risks in Colombia may affect operations.
CALGARY, Alberta, March 08, 2022 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following information concerning its February 2022 natural gas sales, the Carambolo 1 well, near term drilling plans, and the Corporation’s normal course issuer bid.
Gas sales averaged 188 MMscfpd for February 2022
Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were approximately 188 million standard cubic feet per day (“MMscfpd”) for February 2022.
Drilling rig mobilizing to drill Chirimia 1 sidetrack
The Carambolo 1 well has been cased as a gas discovery. The rig is currently mobilizing to drill the Chirimia 1 sidetrack with the objective of reestablishing gas production from the Cienaga de Oro ("CDO") sandstone reservoir. Chirimia 1 was drilled in 2018, and subsequently experienced mechanical issues which have prevented the well from being produced since 2019.
Upon completion of the Chirimia 1 sidetrack the rig will mobilize to drill the Cornamusa 1 exploration well. This well will target CDO reservoir sandstones in a faulted anticlinal closure defined on 3D seismic. The prospect also exhibits a signature AVO response indicative of the potential for the presence of natural gas in the reservoir sandstones.
Normal course issuer bid
During January 2022, the Corporation repurchased 5,307,700 Common Shares for CAD
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 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", "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. 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.
Realized contractual gas sales is defined as gas produced and sold plus gas revenues received from nominated take or pay contracts.
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
FAQ
What were Canacol Energy's gas sales figures for February 2022?
What is the purpose of Canacol's normal course issuer bid?
What drilling plans does Canacol Energy have for the Chirimia 1 sidetrack?
How many shares did Canacol Energy repurchase in January 2022?
