CNNEF - Canacol Energy Ltd. Provides Gas Sales and Drilling Update and Announces Dividend | Benzinga
CALGARY, Alberta, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE, OTCQX:CNNEF, BVC:CNEC)) provides the following gas sales and drilling operations update, along with announcement of quarterly dividend.
November Gas Sales of 169 MMscfpd
Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 169 million standard cubic feet per day for November 2023.
Gas sales during the month of November were impacted by high reservoir levels and related hydroelectric power generation due to heavy rainfall which reduced the demand for gas for thermoelectric power generation. The last week of November saw a fall in reservoir levels related to less rainfall and a related increase in thermoelectrical power generation and gas consumption. Reservoir levels continue to fall into December due to lower rainfall.
The Corporation expects production capacity to be approximately 180 MMscfpd exiting the month of December 2023 following the workover of the Clarinete 4 producer and the drilling of the Nelson 16 development well.
Near Term Drilling Program
The Corporation completed the drilling of the Pandereta 10 development well which encountered 122 feet of net gas pay within the Cienaga de Oro ("CDO") sandstone reservoir. The well was tied into the Jobo facility and brought on production at the end of November.
The rig is currently drilling the Nelson 16 development well which is expected to be completed and tied in by the end of December 2023. The Corporation will then drill the Nelson 17 development well, which it expects to be completed and tied into production by the third week of January 2024.
First Ever Royalty Construction Project Completed
The Ministry of Mines and Energy Resolution 40207/2021 facilitates investments in local public projects in lieu of royalty payments to the National Government. The intent is that communities benefit directly and promptly from resources extracted from within their municipalities. Project proposals are developed jointly between the Corporation and local governments and then approved by the Department Governor.
We are pleased to announce the completion of the first ...