Pure gasoline exploration and manufacturing firm Canacol Vitality Ltd. mentioned it plans to drill 11 exploration wells and three improvement wells within the Decrease Magdalena Valley Basin (LMV) as a part of its 2025 plan.
The corporate mentioned in a media launch it expects its 2025 capital finances to be between $143 million and $160 million.
The corporate additionally mentioned it expects its common realized contractual gasoline gross sales and oil gross sales in 2025 to vary between 146 and 159 million cubic ft equal per day (MMcfpd).
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“In 2025 the Company is concentrated on i) sustaining and rising our reserve base and manufacturing from our core property within the Decrease Magdalena Valley Basin, focusing on the complete use of present transportation infrastructure; ii) exploring greater affect gasoline exploration alternatives within the Decrease and Center Magdalena Valley Basin; iii) laying the groundwork to have the ability to begin operations in Bolivia in 2026 and iv) proceed our dedication to our ESG technique”, Charle Gamba, President and CEO of Canacol, mentioned.
The corporate mentioned that LMV improvement and exploration actions are deliberate to help its strong EBITDA era and permit it to capitalize on sturdy gasoline market dynamics in 2025. The event wells embody the Clarinete-11, Siku-2, and Lulo-3 wells, all of which have already been efficiently drilled and introduced into manufacturing, it mentioned.
Canacol mentioned that the Siku-2 appraisal nicely, inside the firm’s wholly-owned VIM-21 contract, started manufacturing on February 12, 2025, reaching a restricted fee of 6 MMcfpd following its completion on February 3.
The 2025 drilling plan consists of 10 gasoline exploration wells within the LMV and one within the Center Magdalena Valley (MMV). Notable wells within the LMV embody Natilla-2 ST2, which encountered about 550 ft of interbedded sandstone and shales within the Porquero, which confirmed good reservoir high quality based mostly on sonic and resistivity logs.
On the Natilla-2 ST2 nicely on the SSJN-7 contract, additionally totally operated by Canacol, preparations are underway to drill a sidetrack into the Decrease Porquero Formation, focusing on the Cienaga de Oro (CDO) sandstone reservoir at a depth of roughly 16,500 ft.
The Fresa-3 appraisal nicely, focusing on the CDO sandstone on the VIM-21 contract, commenced drilling on February 17 and is anticipated to begin manufacturing inside three weeks.
Canacol mentioned it’s mobilizing a drilling rig to the VIM-5 contract to drill the Chibigui-1 exploration nicely, focusing on CDO sandstones, with an anticipated three-week drilling and testing interval. A profitable Chibigui-1 nicely can be linked to present infrastructure by way of a 3.5-kilometer stream line.
Canacol mentioned it has established a big acreage place within the MMV and plans to drill the Valiente prospect this yr, focusing on a big shallow construction south of the Opon gasoline discipline, found in 1965 and developed by Amoco in 1997. The Opon discipline’s sandstone reservoirs within the Tertiary La Paz Formation peaked at roughly 104 MMcfpd of gasoline and three,790 barrels of condensate per day in 1998, producing a complete of 54 billion cubic ft of gasoline and 1.2 million barrels of condensate. Valiente-1 is ready to spud within the early fourth quarter, focusing on the identical productive sandstones at shallower depths, the corporate mentioned.
Canacol can also be persevering with its efforts on the Pola exploration challenge within the MMV, focusing on gasoline in Cretaceous reservoirs at depths close to 17,000 ft.
In Bolivia, the company mentioned it’s awaiting congressional ratification of three exploration contracts (Arenales, Ovai, and Florida Este) and one redevelopment contract (Tita) to ascertain their efficient date. Cananol mentioned it’s getting ready to use for an environmental allow for Tita and formulating improvement plans to start reactivation actions in 2026.
To contact the creator, electronic mail andreson.n.paul@gmail.com
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