Canacol Energy has a 100% working interest in the block, which is around 470,022 hectares in size and is located in the Caguan – Putumayo basin of Colombia. An interpretation of the existing geotechnical data on the block identifies prospective structural trends similar to the Capella heavy oil discovery located immediately to the north on the Ombu E&P contract. The work obligations associated with the contract require the company to acquire 2,240 kilometers of aeromagnetic and gravity data and conduct geotechnical studies including the interpretation of available LandSat image data over a period of 12 months, for an anticipated cost of around $406,000.
Charle Gamba, president and chief executive officer of Canacol Energy, stated, 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.
