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Canacol Energy Ltd Advances Natural Gas Exploration with Promising Well Discoveries

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Cashu
2 days ago
Cashu TLDR
  • Canacol Energy Ltd. encountered over-pressured gas in the Natilla-2 ST3 well but faced drilling complications, considering next steps.
  • The Borbon-1 well discovered 157 feet of gas pay, with initial production expected at 10 to 12 MMscfpd.
  • The Zamia-1 well reported 32 feet of gas pay, with production projected at 8 to 10 MMscfpd starting in August.
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CNE.TO
Canacol Energy Ltd (Alberta)
5.50%

Canacol Energy Ltd: Exploring New Frontiers in Natural Gas Production

Canacol Energy Ltd. continues to make significant strides in its exploration drilling initiatives, as highlighted by the latest updates on its activities as of July 14, 2025. The company’s Natilla-2 ST3 well, which reached an impressive total depth of 15,616 feet, encountered promising over-pressured gas-charged sand intervals, paralleling the findings of previous wells. However, complications arose due to well bore instability during drilling operations, prompting a temporary abandonment of this well. Canacol is now weighing its options, deliberating whether to re-enter and stabilize the Natilla-2 well or to initiate drilling of a new Natilla-3 well to better access the gas-rich formations.

In parallel, the company has made notable progress with the Borbon-1 well, which spud on June 13, 2025. This well has successfully reached a depth of 10,751 feet and discovered 157 feet of gas pay within the Cienega de Oro (CDO) sandstone reservoir, boasting an average porosity of 18%. Initial production estimates for Borbon-1 are promising, with expectations of 10 to 12 million standard cubic feet per day (MMscfpd) starting in early August 2025. This new well represents a significant development for Canacol, reinforcing its commitment to enhancing natural gas production in the region.

Additionally, the Zamia-1 well, completed earlier in June, has also shown encouraging results, reporting 32 feet of gas pay and an average porosity of 22%. This well is expected to commence production in August, with initial output projected at 8 to 10 MMscfpd. As Canacol prepares to spud the Palomino-1 well, which targets gas-charged sands situated just south of the Borbon discovery, and the Fresa-4 well, aimed at CDO reservoirs, the company is well-positioned to expand its operational footprint in the natural gas sector.

In summary, Canacol Energy Ltd. is making significant headway in its exploration efforts, particularly with the promising findings in the Borbon-1 and Zamia-1 wells. The company’s strategic approach to evaluating drilling options for the Natilla-2 well while simultaneously advancing new projects illustrates its ongoing commitment to becoming a leading player in the natural gas market. As Canacol continues to face drilling challenges, its focus remains on securing and optimizing production from its gas-rich properties.

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