Energy - smartinvestment.ca

[Bobwins]

Bought a small position in Canacol. Stock has been in decline for a couple of years. Colombian and Ecuadorian oil and gas. Production in qtr ending 12/12 was 5354boepd. Currently ~8,200boepd due to merger in December. Acquired big Ecuadorian gas field.

Canacol has significant acreage acquired at around $25/acre in Colombian shale oil acreage. Early stages but has attracted 3 majors to explore for shale oil. Drilling this year. Canacol is being carried on 13 wells.

Big upside with minimal expenses for Canacol.

Don't expect much in production from shale oil but acreage position should propel stock if majors hit anything of consequence.

http://www.canacolenergy.com/u.....master.pdf

This recent presentation does a good job of presenting the case for Canacol.

They have multiple prospects, have good cash position and should show dramatic improvement over the .05/qtr cashflow number. I am expecting .20 to .25/qtr by year end.

[langenburg]

Which quarter of this year are they "predicting" to drill the shale wells ??

[Bobwins]

Exxon to re-enter Mono Araña-1 in 3Q’13e

[Bobwins]

CALGARY, ALBERTA--(Marketwired - May 2, 2013) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (CNE.TO) (BVC:CNEC) is pleased to announce the results of its Labrador 2 well on the Labrador discovery (announced in December 2012), located on the LLA23 Exploration and Production ("E&P") Contract immediately to the north of the Corporation's Rancho Hermoso field in the Llanos Basin of Colombia. Unlike the Rancho Hermoso field, which is governed by contracts with Ecopetrol S.A., the LLA23 contract is governed by the Agencia Nacional de Hidrocarburos, which receives a variable base royalty beginning in an 8% related to gross production resulting in 2-3 times better netbacks and reserve valuations than those available under the Rancho Hermoso tariff and non-tariff contracts. The Corporation has an 80% operated working interest in the LLA23 contract, with Petromont Colombia S.A, Sucursal Colombia holding the remaining 20% interest. The Labrador 2 well is the second well drilled into the Labrador discovery, situated approximately 5 kilometers to the north of the Corporation's Rancho Hermoso field.
The Labrador 2 well encountered 59 feet of oil pay within the Middle and Lower Gacheta, and Ubaque reservoirs, all of which are productive to the south in the Rancho Hermoso field. The Lower Gacheta reservoir in the offsetting Agueda 1 ST well, located approximately 1 kilometer to the south, was placed on production November 30, 2012 During January 2013 the well had an average gross rate of 1,535 barrels of gross oil per day ("bopd") (1,228 barrels of net oil per day for Canacol before royalty) and has produced a gross cumulative amount of 225,468 gross barrels of 28 degree API light oil from 42 feet of the Lower Gacheta. The Agueda 1 ST is currently producing at a gross rate of 1,331 bopd (1,065 bopd net before royalty) with 1% water cut.
Labrador 2 Well Results and Forward Plans
The Labrador 2 well was spud on April 11, 2013 and reached a total depth of 10,601 feet measure depth ("ft md") on April 29, 2013. The Labrador 2 well encountered 59 feet ("ft") of net oil pay in the following reservoirs: 48 ft of net oil pay within the Middle and Lower Gacheta reservoirs with an average porosity of 20%; and 11 ft of net oil pay within the Ubaque reservoir with an average porosity of 21%
The Lower Gacheta will be perforated and brought on to long term production within the following 2 weeks. Meanwhile, the drilling rig will remain on location and commence the drilling of the Labrador 3 well, also targeting the Lower Gacheta reservoir in a position along the western flank of the structure. The Labrador 3 well is anticipated to commence drilling in approximately 2 weeks. The Corporation shall provide information concerning the production testing of the Labrador 2 well as it becomes available.

[langenburg]

Price keeps falling but it does look interesting here doesn't it ??

[langenburg]

Price keeps falling but it does look interesting here doesn't it ??

[langenburg]

Price keeps falling but it does look interesting here doesn't it ??