Canacol Discovers Second Gas Reserve in Colombian Basin

Canadian Gas exploration company Canacol Energy Ltd. recently announced a significant discovery of natural gas reserves in Colombia’s Lower Magdalena Basin. The Chontaduro 1 well, which reached a depth of 9,625 feet, has uncovered a 123-foot net gas pay zone within the primary Cienaga de Oro sandstone reservoir. The reservoir underwent perforation across a measured depth interval of 279 feet, and the well was successfully integrated into the Jobo gas processing facility.

The initial production from the well was 5 million standard cubic feet per day for two hours, controlled by a 29/128-inch choke and a tubing hanger pressure of 2290 psi. Over five hours, the production increased incrementally by 1 million standard cubic feet per day until it stabilized at 12 million standard cubic feet per day. The company has already commenced preparations for the Chontaduro 2 appraisal well, aiming at the same reservoir’s southern section.

What is behind Canacol’s second discovery in the Colombian Basin?

These gas reserve discoveries made by Canacol are part of the VIM21 exploration and production contract wholly owned by Canacol, which spans 27,410 acres. VIM21 is among Canacol’s 11 gas contracts in Colombia’s Lower and Middle Magdalena basins, covering a total of 1.5 million net acres. Canacol fully owns ten contracts, while ONGC Videsh Ltd. holds a 50 percent stake in the SSJN 7 contract.

In addition to gas, Canacol is also involved in oil exploration in Colombia, holding shares in various contracts with ConocoPhillips and Ecopetrol SA. As of the end of 2023, Canacol’s proven and probable oil and gas reserves amounted to 106.6 million barrels of oil equivalent, valued at $1.8 billion post-tax. 

While some of Canacol’s fields have shown positive reserve growth, the company has faced challenges in increasing 2P reserves due to unsuccessful exploration at some prospects and drilling challenges at certain wells. Nonetheless, the recent discoveries at Chontaduro and other sites demonstrate the company’s commitment to continued regional exploration and production.