Canacol Energy Ltd. Announces 2P Reserves of 85 MMBOE Worth US$1.3B BTAX and 13 Year Reserve Life Index
Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE)(OTCQX:CNNEF)(BVC:CNEC) is pleased to report its light, medium and heavy crude oil and conventional natural gas reserves and deemed volumes for the fiscal year end December 31, 2016. The Corporation engaged DeGolyer and MacNaughton Canada Limited ("DMCL") to prepare independent reserves evaluations for its two primary conventional natural gas fields in Colombia and for its oil reserves in Colombia and deemed volumes in Ecuador. The DMCL evaluated reserves and deemed volumes represent 92% of the Corporation's total reserves and deemed volumes on a Total Proved "1P" basis.
The Corporation's conventional natural gas reserves are located in the Lower Magdalena Valley basin, Colombia. Canacol's light and medium crude oil reserves are located in the Llanos and Middle Magdalena Valley basins, Colombia. Additional deemed volumes of light and medium crude oil are developed in the Oriente basin, Ecuador. Heavy crude oil reserves are located in the Caguan basin, Colombia.
Canacol's management team continues to execute its growth strategy with respect to high value Colombian gas. The Corporation forecasts 130 million cubic feet of gas per day ("MMcfd") of natural gas production for exit rate 2017 and 230 MMcf/d of natural gas production for exit rate 2018. These targets represent production growth of 44% from current production of 90 MMcf/d and sequential production growth of 77% from 130 to 230 MMcf/d to exit 2018. "
Discussion of Year Ended December 31, 2016 Reserves Report
During the six month period from June 30th 2016 to December 31st 2016, the Corporation recorded increases in certain reserve categories as a result of the drilling and completion of exploration locations at Nelson-6, Nispero-1 and Trombon-1 on the Esperanza natural gas block in the Lower Magdalena valley Basin, Colombia.
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.
SOURCE: Canacol Energy Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.