Canacol - Brazil Summary
| ASSET |
OIL |
CONTRACT STATUS |
GROSS ACRES |
WORKING INTEREST % |
OPERATOR |
TYPE |
| Espirito Santo |
| EST 318 |
Heavy |
Exploration |
7,514 |
100% |
Canacol |
ANP |
| Reconcavo |
| REC-T-169 |
Light |
Exploration |
5,278 |
20% |
W. Washington |
ANP |
| REC-T-170 |
Light |
Exploration |
6,909 |
38% |
W. Washington |
ANP |
| FRB |
Light |
Production |
1,107 |
48% |
W. Washington |
ANP |
| FSE |
Light |
Production |
2,338 |
48% |
W. Washington |
ANP |
| Santana |
Light |
Production |
6,649 |
48% |
W. Washington |
ANP |
| Sauipe |
Light |
Production |
988 |
48% |
W. Washington |
ANP |
| Tico Tico |
Light |
Production |
2,982 |
48% |
W. Washington |
ANP |
| Tucano |
| 5 contracts |
Light |
Exploration |
232,768 |
24% |
JV* |
ANP |
| |
|
|
266,534 |
|
|
|
* Final award of all ANP Round 8 licenses remains outstanding following a court injunction in 2006
Canacol’s Brazilian operations are primarily engaged in the exploration, development, and production of oil and gas in the Recôncavo, Sergipe, Espirito Santo, and Tucano basins of Brazil. To date, the bulk of activity has been undertaken jointly by Canacol and JV‐partner W. Washington in the Recôncavo and Sergipe basins.
Canacol holds a 47.5% working interest and W. Washington holds a 52.5% interest in four main production concessions in Recôncavo, from which over 90% of Canacol’s current Brazilian production originates. The concession contracts were originally awarded to W. Washington by the Agência Nacional do Petróleo, Gás Natural e Biocombustível (“ANP”), Brazil’s national regulator, and Canacol subsequently registered its 47.5% interest on these contracts directly with the ANP. As operator, W. Washington sells all of the produced oil to Petrobras in Recôncavo at prices based on North Sea Brent less costs for transportation and processing.
Reconcavo Basin
Block 170 (37.5% non‐operated working interest)
Canacol was granted an extension by the ANH for the drilling of the Catu exploration prospect located on Block 170 due to issues with access to the lands, and anticipates drilling in the last quarter of calendar 2010. The prospect contains three prospective stacked reservoir sandstones that Management estimates may contain up to 6 million barrels of gross mean unrisked recoverable light oil resource. The preferred well location is situated updip from an old well that recovered light oil from one of three prospective intervals.
Espirito Santo Basin
Block 318 (100% operated working interest)
Canacol recently acquired 100 km of 2D seismic. This data is currently being processed and it is anticipated that a drilling decision will be made by December 2010.
