Canacol Energy Ltd. is pleased to report on the conventional natural gas ?prospective resources (resources other than reserves) for its Esperanza, VIM-21, VIM-5, ?VIM-33, VIM-44 and SSJN-7 exploration blocks located in the Lower Magdalena Valley (“LMV”) basin, ?and VMM-45, VMM-47, VMM-49, VMM-53 and VMM-10-1 exploration blocks located in the ?Middle Magdalena Valley (“MMV”) basin of Colombia (collectively, the “Audited Areas”). Boury Global Energy Consultants Ltd. (“BGEC”), Canacol’s independent qualified resources auditor, was ?commissioned ?to conduct a new independent prospective resources audit of Canacol’s internal estimates of prospective ?resources for ?the Audited Areas effective December 31, 2021? (the “BGEC Report”). Canacol is a natural gas focused exploration ?and production company, and the largest independent gas producer in Colombia.?
Canacol Energy Ltd. — Audited Areas — Gross Working Interest Prospective Resources Summary
Mr. Mark Teare, Senior Vice President of Exploration for Canacol, stated, “Canacol is the largest independent producer of gas in Colombia, with a track record of gas exploration success. BGEC’s independent prospective resource audit evaluated and estimated conventional natural gas prospective resources for 178 individual prospects and leads, which BGEC has aggregated to an unrisked mean of 20.5 trillion standard cubic feet and a risked mean of 7.6 trillion standard cubic feet.
The estimated prospective resources underline the significant potential of Canacol’s six exploration blocks located in the Lower Magdalena Valley basin and five exploration blocks in the Middle Magdalena Valley basin of northern Colombia.
“The Corporation’s successful gas exploration program has been enhanced by using 3D seismic acquisition and processing technologies. In the LMV basin, the application of the Amplitude Versus Offset (AVO) methodology to investigate the presence of gas-charged reservoir sandstones has significantly reduced the risk on the outcome of our gas exploration wells in both the Corporation’s key play types in the Cienaga de Oro Formation (“CDO”) and in the Porquero Formation.
“In the MMV basin, the Corporation has assembled a 610,981 net acre position in 5 Exploration and Production Contracts won in 3 bid rounds administered by Colombia’s hydrocarbon regulatory authority, the Agencia Nacional de Hidrocarburos, over the past 3 years. The Corporation operates all 5 contracts with a 100% working interest. The Corporation has identified conventional natural gas plays within the Cretaceous La Luna Formation (“La Luna”), which consists of up to 3,300 ft of marine carbonates and clastics, and is the primary source rock for most of the proven oil and gas reserves in Colombia, Venezuela, and Ecuador. The La Luna itself is productive in various oil and gas fields in Colombia. The Corporation anticipates drilling the Pola 1 exploration well in the third quarter of 2022, Pola 1 will be the first of several high impact exploration wells in this new La Luna play.”