Canacol Strikes Oil at Colombia Well



Canacol Energy Ltd. announced the results of the Leono 1 exploration well drilled on the LLA23 Exploration and Production (E&P) contract located in the Llanos Basin of Colombia. Leono 1 is the second A3 exploration well the Corporation has drilled on the LLA23 contract following the Labrador discovery announced in late calendar 2012. The Corporation has an 80 percent operated working interest on the LLA23 contract with the other 20 percent interest held by Petromont S.A. Sucursal Colombia. The Leon 1 encountered 133 feet of net oil pay within 4 different reservoirs, and the Corporation is currently preparing to conduct a series of production tests on the discovery.

“Leono 1 is a significant success for the Corporation, our second in a row on the LLA23 block after the Labrador discovery drilled late last year. The thickness of the net oil pay section at Leono 1 is approximately twice that of Labrador, and rivals that of Rancho Hermoso, making Leono a major development project for the Corporation in calendar 2014. This fault trend we are drilling on LLA23 is shaping up to be a materially productive one for the Corporation, with several other prospects along this trend yet to be drilled. With a diverse and growing production base located in 5 different basins, and an unrivaled exploration position in Colombia of 1.6 million net acres that has delivered solid exploration discoveries, the Corporation is positioned for significant production and reserves growth in 2014,” President and CEO of the Corporation Charle Gamba commented.

The Leono 1 well was spud on November 9, 2013 and reached a total depth of 11,995 feet measured depth Nov. 26, with strong oil and gas shows encountered while drilling through the primary reservoir targets. The well encountered 133 feet of net oil pay in the following reservoirs: 13 feet of net oil pay within the C7 reservoir with an average porosity of 19 percent, 27 feet of net oil pay within the Barco reservoir with an average porosity of 18 percent, 69 feet of net oil pay within the Gacheta reservoir with an average porosity of 20 percent, and 24 feet of net oil pay within the Ubaque reservoir with an average porosity of 24 percent.

The Corporation is currently preparing to conduct production testing operations on the Barco and Gacheta reservoirs. Once the production tests have been completed the Corporation anticipates bringing the Leono 1 well onto long term production subject to the approval of the Agencia Nacional de Hidrocarburos, which the Corporation anticipates will occur in late December 2013. Canacol is planning to drill four appraisal wells at Leono immediately following the testing operations at Leono 1, and will provide updates when relevant information becomes available.



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