Quetzal Energy has discovered oil in the lower Mirador Formation at the well Canaguay - 1 on the Canaguaro Block in Colombia.

Canaguay – 1 is the first well to be drilled on its Canaguaro exploration drilling program.

The well began drilling on 3 June 2010, and completed drilling at a final total depth (TD) of 15,850ft on 4 August 2010.

Quetzal began completion and testing operations on 9 September 2010.

To date the Une / Lower Sandstone, Gacheta, Barco and lower Mirador intervals have been perforated and tested.

The Upper Mirador, which has the majority of the indicated oil pay on well logs, has not been perforated or tested as at this time but perforating and testing of the upper Mirador is expected to be completed in the next several weeks.

Quetzal has a 25% working interest in the Canaguaro Block and is acting as the operator.