Canacol Energy begins drilling in Colombian Caguan

Canacol Energy has started its heavy oil exploration drilling programme on its Portofino and Cedrela exploration and production (E&P) contracts located in the onshore Caguan – Putumayo basin in Colombia.

Canacol operates and has a 100% stake in the Sangretoro, Tamarin, and Cedrela E&P contracts totaling 773,070 acres in the heavy oil basin, and holds a 40% share in the Portofino contract, which represents 103,472 acres.

The corporation plans to drill six stratigraphic wells; four on the Portofino contract and two wells on the Cedrela contract, in a back-to-back drilling campaign to begin by the end of July 2012 and end in early 2013.

Canacol Energy president and CEO Charle Gamba said these stratigraphic wells will target six of the prospects and also leads that the company has defined on the blocks using approximately 900km of newly acquired 2D seismic, the first seismic ever shot on these blocks.

"The corporation anticipates that should hydrocarbons be discovered in any of the stratigraphic wells, it may be able to book reserves and contingent resources, as have other companies using stratigraphic well results in Colombia," he added.

Drilling these wells will be targeted to yield useful information concerning the presence and type of oil, as well as basic reservoir thickness and quality information.

Achote 1 stratigraphic well in the Portofino contract will target potential heavy oil bearing reservoirs in the Mirador sandstones, and is planned for a targeted depth of 3,800ft.

Guarango 1 well in the Cedrela contract is planned to be drilled to 2,500ft measured depth and will also target potential heavy oil bearing reservoirs in the Mirador sandstones.

The Portofino contract is located 25km to the south-west of the Capella heavy oilfield, discovered in 2008, while the Cedrela contract is located 50km to the southwest of the Capella field.

The corporation plans to spud three additional stratigraphic wells on the Portofino contract, and one additional stratigraphic well on the Cedrela contract.

Canacol has contracted Estrella International Energy Services for the Estrella 552 rig for the drilling programme, and it is currently being transported to Colombia from Peru.