Canacol Energy Colombia, a subsidiary of Canacol Energy, has acquired around 80% interest in each of the COR 4 and COR 12 exploration and production contracts, situated in the upper Magdalena basin of Colombia.

The new contracts are situated adjacent to the company’s existing COR 39 and COR 11 E&P contracts in the region.

Canacol said that the contracts are prospective for both shallow conventional oil exploration targets within the Guadalupe sandstone reservoirs and deeper non-conventional oil exploration targets within the thick Cretaceous Villeta – La Luna shale.

Canacol Energy president and CEO Charle Gamba said the acquisition has increased firm’s position within the developing shale oil play in the Magdalena Valley of Colombia to over 545,000 net acres.

"With several important near term catalysts on the horizon this year with respect to shale oil exploration on the part of both Canacol and other operators in Colombia, this pre-emptive acquisition consolidates the Corporation’s position in this high potential play at very attractive metrics ahead of these important catalysts," Gamba added.

Canacol, which is a Canada-based oil and gas company, has operations in Colombia and Ecuador.