C&C Energia Ltd.

C&C Energia Ltd.

February 03, 2012 20:30 ET

C&C Energia Ltd. Provides Operational Update On Cachalote-1 Well, Andaquies Block, Colombia

CALGARY, ALBERTA--(Marketwire - Feb. 3, 2012) - C&C Energia Ltd. ("C&C" or the "Corporation") (TSX:CZE) reports that it has finished the completion and testing of the Neme Formation in the Cachalote-1 well in Colombia and will abandon the well. The Cachalote-1 well encountered 271 feet of Neme sandstone that contained oil shows over an interval of approximately 130 feet with average porosity of 21%. The Neme reservoir was perforated in the interval from 5,676 feet to 5,718 feet and between 5,642 to 5,660 feet and on a swab test flowed from the lower perforations traces of oil with a gravity of 13.8° API and fresh water at rate of 1,280 bbls/per day. The upper perforations tested traces of oil and 1,020 barrels of fresh water per day.

The data collected from the test of Cachalote-1 indicates that the oil recovered from these excellent reservoirs most likely represents a residual oil accumulation in a structure that has been either breached or flushed by fresh water. The Cachalote-1 well is the first exploration well on the Andaquies block (114,875 gross acres) located in the northern Putumayo Basin in Colombia. C&C has a 64% working interest and is the operator.

C&C and its partner Canacol Energy Ltd. plan to move the drilling rig at Cachalote-1 in the coming days to the Tardigrado prospect located on the Northern portion of the Andaquies block and spud the Tardigrado-1 well within 2 to 3 weeks. The Tardigrado prospect is a three-way structural closure against a fault with potential in the Neme and Caballos formations.


The Corporation, through its subsidiary Grupo C&C Energia (Barbados) Ltd., is engaged in the exploration for, the development and production of, oil resources in Colombia. Its strategy is to develop producing oil assets by appraising and developing existing discoveries and exploring in areas assessed by management to be of low to moderate risk. With a total of eight blocks (seven operated) and approximately 530,000 net acres in Colombia, the Corporation's management expects that C&C has considerable upside for future production and reserve growth.


This press release contains forward-looking information within the meaning of applicable Canadian securities laws that involves known and unknown risks and uncertainties. Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", "will", "plans" or similar words suggesting future outcomes. The Corporation cautions readers and prospective investors in the Corporation's securities to not place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by C&C.

Forward-looking information in this press release includes, but is not limited to, information concerning the Corporation's plans with respect to the Cochalote-1 well and the planned Tardigrado-1 well, as well as management's views regarding the prospects of the Corporation to increase production and reserves.. These forward-looking statements are subject to assumptions regarding the Corporation's operations and the operating environment in Colombia. The Corporation's drilling and seismic plans are subject to change if circumstances change or if management of the Corporation determines that other business plans are more appropriate.

Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by C&C including, but not limited to, general risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with the negotiating with the ANH or with other third parties in countries other than Canada and the risk associated with international activity. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement. The forward-looking information included herein is made as of the date hereof and C&C assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.

Contact Information

  • C&C Energia Ltd.
    Richard A. Walls
    President and Chief Executive Officer

    C&C Energia Ltd.
    Ken Hillier
    Chief Financial Officer

    C&C Energia Ltd.
    Tyler Rimbey
    Vice President, Business Development