Canacol Energy tests gas discovery in Colombia

CALGARY, Alberta -- Canacol Energy has announced that Clarinete-1, the first well drilled in its recently acquired VIM 5 exploration and production contract, has tested at a final gross rate of 20.6 MMcfd (3,606 boed) of dry gas with no water in the first of two planned production tests over two separate reservoir intervals.

The Clarinete-1 exploration well was spud on Oct. 8, 2014, and reached a total depth of 8,068 ft measured depth on Nov. 7, 2014.

The primary objective of the well were sandstones of the Tertiary aged Cienaga de Oro (CDO) sandstone, the main producing reservoir at the Nelson and Palmer fields in the adjacent Esperanza contract where Canacol has a 100% operated working interest.

The Clarinete-1 well encountered 149 ft of gas pay with average porosity of 26% within the CDO sandstone reservoir based upon an evaluation of the open hole logs.

Canacol, through its wholly owned subsidiary CNE Oil & Gas, holds a 100% operated interest in the VIM 5 E&P contract. Pursuant to an existing agreement, and subject to approval from the Agencia Nacional de Hidrocarburos, an industry JV partner has the ability to earn up to 25% of the corporation's 100% interest in exchange for fulfilling certain financial commitments.