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Canacol Energy Ltd. confirmed the start of its heavy oil exploration drilling program on its Portofino and Cedrela exploration and production contracts in the Caguan-Putumayo Basin, Colombia. The corporation has a 100% working interest and is operator of the Cedrela, Sangretoro, and Tamarin contracts, which represent approximately 773,070 net acres, and a 40% working interest in the Portofino contract, which represents approximately 103,472 net acres.
The corporation has executed a contract with Estrella International Energy Services Ltd. for the Estrella 552 rig, which is currently being mobilized to Colombia from Peru. Canacol plans to drill six stratigraphic wells, which include four wells on the Portofino contract and two wells on the Cedrela contract in a back-to-back drilling campaign that will commence late July and end early 2013.
Charle Gamba, president and chief executive officer of the corporation, commented, "These stratigraphic wells will target six of the more than fifty prospects and leads we have defined on the blocks using approximately 900 km of newly acquired 2D seismic, the first seismic ever shot on these blocks. These wells, which can be drilled inexpensively compared to conventional exploration wells, have the potential to yield useful information concerning the presence and type of oil, as well as basic reservoir thickness and quality information.”
“The corporation anticipates that should hydrocarbons be discovered in any of the stratigraphic wells, it may be able to book reserves and contingent resources, as have other companies using stratigraphic well results in Colombia. Since the discovery of the Capella heavy oil field by Canacol and its partner in 2008, the corporation has leveraged its proprietary knowledge of the geology and potential of the area to acquire 883,931 net acres in this highly prospective and underexplored play fairway. Canacol will be the first company to execute a major exploration drilling program in this frontier basin in Colombia," he added.