Canacol Energy Ltd. tests 28 MMSCFPD (4,912 BOEPD) from 7th consecutive gas discovery at Canahuate 1
Thursday, May 04, 2017
Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE)(OTCQX:CNNEF)(BVC:CNEC) is pleased to provide the following update for the Canahuate 1 exploration well, the Corporations seventh consecutive gas discovery in the Lower Magdalena Basin, and an update of its remaining gas exploration wells for 2017.
 
Canahuate 1 Gas Discovery
Esperanza Exploration and Exploitation ("E&E") Contract
Geoproduction Oil and Gas Company of Colombia, 100% Operated Working Interest


The Canahuate 1 exploration well was spud on March 24, 2017 and reached a total depth of 8,263 feet measured depth ("ft md") in 13 days. The well encountered 124 ft md (86 feet true vertical depth) of net gas pay with average porosity of 18% within the primary Cienaga de Oro ("CDO") reservoir target.

Two different zones were completed and flow tested within the CDO. The first zone tested within the CDO was perforated between 5,067 to 5,872 ft md and flowed at a final stabilized rate of 23 million standard cubic feet per day ("MMscfpd") of dry gas at a flowing tubing head pressure of 997 psi and 60/64 inch choke with no water over a 23 hour test period. The second zone tested was perforated between 4,965 to 4,990 ft md and flowed at a final stabilized rate of 5.4 MMscfpd of dry gas at a flowing tubing head pressure of 1,524 psi and 30/64 inch choke with 8 barrels of water over a 20 hour test period. Based upon the salinity of the produced water management has concluded that it is brine related to the drilling and completion of the well. Work is underway to tie the Canahuate 1 well into the Corporation's gas processing facility at Jobo approximately 3 kilometers ("kms") to the south.
 
Toronja 1 Gas Exploration Well
VIM 21 Exploration and Production ("E&P") Contract
Geoproduction Oil and Gas Company of Colombia, 100% Operated Working Interest


The Tuscany 12 drilling rig used to drill and complete Canahuate 1 is being mobilized to drill the Toronja 1 exploration well located on the VIM21 E&P contract approximately 6 kms to the southeast of Jobo. The objective of the Toronja 1 exploration well are the shallow Porquero reservoir sandstones which were recently proven as a new commercial play type by the Corporation with the nearby Nelson 6 gas discovery late in 2016. The Toronja prospect displays a well-developed seismic anomaly indicative of the presence of gas within the Porquero sandstone reservoirs. The Corporation anticipates spudding the Toronja 1 well in early June, 2017, and it is expected that the well will be drilled and tested four weeks after spud.
 
Pandereta 1 Gas Exploration Well
VIM 5 Exploration and Production Contract
CNE Oil and Gas S.A.S., 100% Operated Working Interest


Upon completion and testing of the Toronga 1 exploration well the Tuscany 12 rig will be mobilized to drill the Pandereta 1 exploration well located approximately 10 kms to the east of the Clarinete and Oboe fields on the VIM 5 contract. The objective of the Pandereta 1 exploration well are proven sandstones of the CDO reservoir. The Pandereta prospect displays a well-developed seismic anomaly indicative of the presence of gas within the CDO reservoir sandstones. The well will be spud in late October 2017 and is expected to be drilled and tested five weeks after spud.

The Corporation shall provide updates on the exploration drilling program as information becomes available.

Canacol is an exploration and production company with operations focused in Colombia, Ecuador, and Mexico. 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.

For more information, please visit: http://www.canacolenergy.com

For additional information on this project, please visit our ProjectsOGP database
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