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CALGARY - Canacol Energy Ltd. (TSX:CNE; OTCQX:CNNEF), a $3.26 billion market cap energy company trading at $0.52 per share, announced Monday that its Natilla-2 ST3 exploration well has been temporarily abandoned due to wellbore instability and pressure issues encountered after reaching a depth of 15,616 feet. According to InvestingPro data, the company maintains a GOOD financial health score, suggesting resilience to operational challenges.
The company reported the well encountered the same over-pressured gas-charged Porquero sand intervals present in previous sidetracks. Canacol is now evaluating options to either re-enter the current well or drill a new Natilla-3 well targeting the gas-charged sandstones. With a healthy current ratio of 1.34, the company appears well-positioned to fund its ongoing operations.
In more positive developments, the Borbon-1 exploration well reached total depth on June 22, encountering 157 feet of gas pay with average porosity of 18% within the primary Cienega de Oro (CDO) sandstone reservoir. The well has been cased and completed, with production expected to begin in early August at an anticipated rate of 10 to 12 million standard cubic feet per day (MMscfpd).
Similarly, the Zamia-1 exploration well, completed on June 4, found 32 feet of gas pay with 22% average porosity in the CDO sandstone reservoir. This well is also scheduled to begin production in early August with expected initial production of 8 to 10 MMscfpd.
Canacol also reported that its Palomino-1 exploration well is expected to spud within the next week, targeting gas-charged CDO reservoir sands approximately 2 kilometers south of the Borbon discovery.
Additionally, the Fresa-4 appraisal well was spud on June 30, targeting gas-charged CDO sandstones about 1 kilometer from the recently drilled Fresa-3 well, which is currently producing approximately 10 MMscfpd.
According to the press release, both the Palomino-1 and Fresa-4 wells are expected to take approximately three weeks to drill and complete.
In other recent news, Canacol Energy held its annual general and special meeting in Bogotá, Colombia, where shareholders elected seven directors to the company’s board. The elected members include Charle Gamba, Michael Hibberd, Francisco Diaz, Gustavo Gattass, Valentina Garbarini, Silvestre Tovar Leopardi, and David Winter. Charle Gamba received the highest approval rate with 99.49% of the votes cast. In contrast, Valentina Garbarini and Silvestre Tovar Leopardi had lower approval rates of 60.09% and 58.08%, respectively. Shareholders also appointed PricewaterhouseCoopers LLP as the company’s auditors. Additionally, they approved unallocated awards under Canacol’s omnibus long-term incentive plan. These developments reflect the company’s ongoing governance and strategic planning efforts. The detailed voting results and other approved matters are available in the Management Information Circular and the Report of Voting Results on SEDAR+.
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