Canacol Energy (CNE.TO) has been on a winning streak lately as the success ratio of its exploration program in Colombia is very high. After having made numerous discoveries, the Pandereta 2-well completely surpassed our expectations. This well encountered a net gas payzone of 130 feet with an absolute open flow fate of a stunning 140MMcf per day. Using the more ‘appropriate’ stable flow rate, 35 MMcf/day is nothing to sneeze at either as this well could become an important contributor to Canacol’s plans to fill the pipeline expansion slated for next year.
Canacol is gearing up to reach a production capacity of 230 MMcf/day later this year (so a single well of 35 MMcf/day could represent up to 15% of the company’s total gas production!), but is now leaving the door open to explore even higher production rates should A) the updated reserve estimates would support this and B) if additional pipeline capacity could be secured.