Tuesday, July 12, 2016
Canacol Energy gives update
Gas cash sales before royalties for the months of May and June 2016 averaged approximately 88.5 million standard cubic feet per day (“MMscfpd”), or 15,526 barrels of oil equivalent per day (“boepd”). The average cash netback was approximately US$ 26.00 / barrel of oil equivalent (“boe”) during this period. Production from the Clarinete 1 and Clarinete 2ST wells averaged 30 MMscfpd for the months of May and June 2016. Gas cash sales were slightly impacted by scheduled maintenance at one of Canacol’s customer’s facilities which have since been completed. Oil sales before royalties, including Ecuador, for the months of May and June 2016 were 3,995 barrels of oil per day (“bopd”) with an average cash netback of US$ 25.67 / barrel (“bbl”).
The market likes what is happening at Canacol as the stock has been marching higher recently. This company is gushing cash on gas sales to an under served area of Colombia. At some point the oil price will come back and then this thing will be hitting on all cylinders.