The Nispero 1 well was tested at a rate of 28 mmcf/d. This success has prompted the company to immediately drill an offset well (Trombon 1) to test the extent of the reservoir.
Canacol continues to have success in its gas drilling program. They continue to invest in gas exploration and development and have long term gas contracts to supply an area of Coloumbia that is currently short of gas.
Over the next couple of years they should see sales to the coastal region, that is short of gas, go from 65mmscf/d to 100mmscf/d. That should also see EBITDAX go from $135 million to $315 million per year.
They also have substantial oil potential in Colombia so that is a long term option on the price of oil. The wave of cashflow that is being generated by the gas assets could be recycled very easily into oil when the oil price eventually recovers which it will inevitably.
I like what I am seeing here and will continue to hold. I may add more shares as they really have not moved as much as I expected considering the continued good news.