Canacol Energy Ltd. (Toronto: CNE.TO) has announced the results from an independent resources evaluation of the corporation's Santa Isabel, VMM 2, and VMM 3 blocks, effective June 30, 2014. For the prospective deep Cretaceous interval, specifically the La Luna and the Tablazo formations, in each of the three blocks, the corporation has 30% working interest in Santa Isabel, 20% working interest in VMM 2, and 20% undivided interest in VMM 3 subject to fulfillment of certain conditions. The three blocks in aggregate consist of 260,000 and 62,000 gross and net acres respectively in the Middle Magdalena Basin, Colombia.
The corporation engaged DeGolyer & MacNaughton Canada Ltd. to prepare an independent prospective resources report. D&M provided low, best, high, and mean estimates of unrisked resources on a statistical aggregation method to the three blocks. These estimates have not been adjusted for the probability of geologic success.
| Low estimate, P90 | Best estimate, P50 | High estimate, P10 | Mean estimate | |
| Gross pool economic prospective oil resources, MMbbl | - | 782.1 | 1,256.0 | 856.2 |
| Canacol's gross working interest economic prospective oil resources, MMbbl | - | 168.4 | 263.0 | 185.0 |
D&M provided low, best, high, and mean estimates of the potential net present worth that may be realized from the production and sale of prospective shale oil resources.
| Low estimate | Best estimate | High estimate | Mean estimate | |
| Canacol's potential NPV10 of prospective oil resources, MMUSD | - | 775 | 4,343 | 1,294 |
VMM 3 block, Picoplata 1 exploration well
The operator plans to spud the Picoplata 1 exploration well by mid-October 2014. The well targets the Cretaceous La Luna Formation.
The corporation has four additional prospective shale oil blocks representing 651,000 and 483,000 gross and net acres respectively in the Upper Magdalena Basin, Colombia. These blocks are not included in the independent prospective resources report.
The company is based in Calgary.
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