Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX:CNE) (BVC:CNEC) provides the following update on the recompletion of the Agueda 1 well on its LLA 23 Exploration and Production (“E&P”) Contract (80% operated working interest) located in the Llanos Basin of Colombia. The Agueda 1 well was successfully re-entered and tested formation water from two sandstone reservoirs in the C7 reservoir.
The Agueda 1 well was drilled in 2007 and bypassed oil pay was identified by the Corporation within the C7 reservoir. Two of the three C7 sandstone reservoirs were perforated between 8,803-17 and 8,886-8,904 ft md and tested in the well, with each zone producing formation water at high rates. The well has been suspended as a potential future water injection well should the Corporation realize exploration success in any of the exploration prospects the Corporation plans to drill on the LLA 23 E&P contract later in 2012.
The Corporation has commenced the acquisition of 100 square km of 3D seismic on the block, and anticipates drilling its first exploration well on the block in Q3 2012. The results of the Agueda 1 workover in no way impact the remaining undrilled prospectivity of the LLA 23 contract.
The Corporation maintains its average 2012 production guidance of between 14,000 and 16,000 bopd net revenue production, which does not include potential production from any of the exploration wells planned for 2012.