Canacol Energy Ltd. reported on Tuesday a reserve replacement ratio (RRR) of 169 percent for light/medium crude oil and proven and probable conventional natural gas by the end of 2022, with 7.5 percent more reserves than one year.
The Canadian company operating in Colombia said its conventional gas reserves are located in the Lower Magdalena Valley (VIM) basin in the South American country, while its newly discovered light/medium oil reserves are they are in the Magdalena Middle Valley basin (VMM).
Canacol’s gross reserves of both types totaled 652.5 billion standard cubic feet equivalent (Bcfe) as of Dec. 31, up 7.5% year-on-year and “at a pre-tax value discounted by 10% of $1.9 billion,” the corporation said in a press release. . Proved reserves of both types stood at 339.2 Bcfe.
The oil equivalent of proven reserves was 59.5 million barrels and that of proven and probable reserves was 114.5 million barrels.
The company’s gross proved and probable reserves of light/medium crude oil and natural gas stood at 652,466 million cfe (MMcfe) at the end of 2022, up from 606,855 at December 31, 2021. But its proved reserves for both types fell to 339,243 MMcfe. from 368,366 MMcfe, according to the announcement.
Canacol did not provide oil production figures for 2022, only saying it had production of 66,483 MMcfe of conventional natural gas and 11,664 million barrels of oil equivalent for the year. It said it will announce full financial results for the past year on March 27.
“Over the past decade, we’ve added more than 880 BCF [billion cubic feet] of 2P [proved and probable] conventional natural gas reserves from success in 35 of the 41 exploration wells drilled, resulting in a compound annual growth rate (“CAGR”) of 22% in 2P conventional natural gas reserves,” he said Canacol COO Ravi Sharma.
“With our exploration-focused drilling campaign in 2023 and a portfolio of 178 identified prospects and prospects that contain potential unrisked conventional natural gas resources of 20.5 trillion cubic feet, according to our resource report of third of 2021, we anticipate many more years of successful exploration drilling.”.
“Our 2023 work program will also test, evaluate and link recent discoveries, and return to production several wells that are not currently producing.”
Canacol said it had made discoveries last year in Colombian blocks Esperanza, SSJN7, VIM5, VIM21, VIM33 and VMM45.
The corporation added that it had net capital expenditures, or expenditures on fixed assets, of $151.443 billion in 2022 and $321.907 billion over the past three years.
Canacol is listed in Canada, Colombia and the USA. It declared a dividend of $0.19 (CAD 0.26) per share on March 16, “payable on April 17, 2023 to shareholders of record at the close of business on March 31, 2023.”
Canacol previously reported selling 191 MMcf/d of gas in February and said drilling at its Natilla 1ST well could be completed in the second quarter.
“The Custard 1ST targets the gas-laden sands of the Porquero and Cienaga de Oro reservoirs. [in Colombia]”, Canacol said in a press release on March 2. “The Corporation anticipates that the well will take approximately 6 more weeks to drill, complete and test.”
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