Pure fuel exploration and manufacturing firm Canacol Vitality Ltd. plans to lift revenue this 12 months with out having to extend capital expenditure.
In its newest steerage replace, Canacol mentioned its capital finances has been set between $138 million and $151 million.
The corporate forecast common realized contractual fuel gross sales for 2024 between 160 and 177 million cubic ft per day (MMcfpd). The common wellhead gross sales worth, internet of transportation prices, is predicted to common $6.59 per thousand cubic ft. That is $1.18 above the wellhead gross sales worth of 2023. This might additionally end in an EBITDA of $250 million to $290 million, above Canacol’s $236 million EBITDA in 2023.
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“As we beforehand said, the Company’s long-term plan is targeted on i) sustaining and rising our reserve base and manufacturing from our core belongings within the Decrease Magdalena Valley Basin, concentrating on the total use of current transportation infrastructure; ii) exploring excessive affect exploration alternatives within the Center Magdalena Valley Basin; iii) strategic entrance into the fuel market in Bolivia, and iv) proceed to enhance our ESG scores”, President and CEO Charle Gamba, President said.
Canacol mentioned it’s also planning complete growth and exploration packages, with a drilling goal of as much as 5 growth wells. It mentioned it might set up new compression and processing services as required and implement workover operations at producing wells in its key fuel fields.
The corporate plans to additionally drill 4 exploration wells, in addition to full the acquisition of 96.1 sq. miles (249 sq. kilometers) of 3D seismic knowledge so as to add new reserves and determine new drilling prospects.
“Through the first half of 2024, we’re planning an energetic growth drilling and workover program, coupled with investments in further compression and processing services, to make sure that adequate productive capability exists to fulfill doubtlessly excessive fuel demand through the first half of 2024 associated to the results of El Nino”, the corporate mentioned.
Moreover, regardless of specializing in lowering debt, the corporate mentioned it should preserve substantial funding in its key producing blocks to benefit from present favorable fuel market dynamics.
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