Canacol Energy Ltd. Reports Record Production Levels
Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX: CNE) (OTCQX: CNNEF) (BVC: CNEC) reported its financial and operating results for the three and six months ended June 30, 2016.
“We continued to build momentum into the second quarter of 2016, with both record corporate production and our highest revenues, earnings, and adjusted funds flows from operations since the near $100 oil prices of 2014”, reported Charle Gamba, President and CEO of Canacol.
“During the second quarter, Canacol achieved record cash sales volumes of 17,817 boepd, a 52% increase over the average of 11,746 boepd for the previous quarter ending March 31, 2016. With the completion of the Promigas pipeline expansion in April 2016, we seamlessly brought 65 MMscfpd of new gas production on stream, with obvious positive effects on corporate earnings. Adjusted funds from operations for the three months ended June 30, 2016 increased 99% to $26.9 million from the previous quarter of $13.5 million for the three months ended March 31, 2016.
The Corporation had a comprehensive income of $11.2 million for the three months ended June 30, 2016, compared to a comprehensive loss of $58.5 million for the three months ended June 30, 2015. The Corporation continues to be profitable in 2016, which marks a return to profitability moving forward as Canacol’s gas sales volumes continue to increase.
Our continued focus on reducing costs and increasing gas production resulted in another 7% increase in operating netbacks to $25.58/boe for the three months ended June 30, 2016, compared to $23.90/boe last quarter.
We also continue to increase our gas reserve base, with the successful Oboe-1 well recently being assigned 38 bcf of 3P gas reserves. Our gas drilling program also includes the currently drilling Nispero-1 well, to be directly followed by Nelson-6.
As a result of the recent CDN $46.9 million private placement, we now expect to expand this program and have a gas drilling rig running continuously well into 2017, with one additional gas exploration well and one additional gas development well planned for the remainder of 2016. We also plan to drill one oil exploration well on our VMM2 concession in Q4 2016.”
Source: Canacol Energy Ltd.
Oil and Gas News Undiluted !!! “The squeaky wheel gets the oil”
Follow us: @OilAndGasPress on Twitter |