Canacol Energy (CNE) shares jump after block awarded
Shares of Calgary-based oil and gas firm Canacol Energy (TSX: V.CNE) climbed 25% to 20 cents Thursday, after the company announced is that it has been awarded the Pacarana Technical Evaluation Area by the National Hydrocarbon Agency of Colombia.
Canacol, which is focused on Colombia, Brazil, and Guyana, says the Pacarana block is located adjacent to the Ombu E&P contract which contains its Capella heavy oil discovery which is currently under appraisal.
The work obligations associated with the contract require Canacol to acquire 2,240 km of aeromagnetic and gravity data and conduct geotechnical studies including the interpretation of available LandSat image data over 12 months, for an anticipated cost of US $406,000, says the company.
“This contract provides us with access to potentially material exploration prospects similar in nature to its Capella heavy oil discovery on the Ombu E&P contract, which is located immediately adjacent to and on trend with the Pacarana contract. The award of this contract reflects the execution of the Corporations strategy of focusing on organic growth in our core operating countries,” said Charle Gamba, president and CEO of Canacol.
