Canacol Energy begins production at Labrador 3 well in Llanos Basin, Colombia

Canacol Energy has started production at the rate of 1,460 barrels of oil per day (BOPD) in the Labrador 3 well, located at the LLA23 exploration and production contract in the Llanos Basin, Colombia.

Drilled on 21 May, the Labrador 3 well is about 5km north of the company’s Rancho Hermoso field. The well encountered 62ft of net oil pay in the C7, Gacheta and Ubaque reservoirs.

The C7 reservoir was perforated from 9,133ft to 9,147ft and produced around 20ft of net oil pay with an average porosity of 24%. The well produced 25ft of net oil pay in the Middle and Lower Gacheta reservoirs at an average porosity of 23%. It also produced 17ft of net oil pay within the Ubaque reservoir at an average porosity of 19%.

Canacol has produced approximately 8,616 barrels of oil equivalent per day (BOEPD) in May and June, including 5,794 BOPD of crude oil and 16.3 million standard cubic ft per day (MMSCF/D) or 2,822 BOEPD of gas.

This value has risen to approximately 9,832 BOEPD between 1 and 7 July, including 7,010 BOPD of crude oil and 16.1 MMSCF/D or 2,822 BOEPD of gas.

The LLA23 contract is governed by the Agencia Nacional de Hidrocarburos (ANH), which receives a variable base royalty at 8% under the Rancho Hermoso tariff and non-tariff contracts.

Canacol holds a 80% operated working interest in the LLA23 contract, while Petromont Colombia and Sucursal Colombia hold the remaining 20% interest.