C&C Energia Ltd.

C&C Energia Ltd.

April 10, 2012 03:00 ET

C&C Energia Ltd. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - April 10, 2012) - C&C Energia Ltd. ("C&C Energia" or the "Corporation") (TSX:CZE) is pleased to provide an operations update on its current activities in Colombia.

Current production levels are approximately 10,500 barrels of oil per day ("bopd") and average production for the first quarter was approximately 10,350 bopd. 2012 production remains forecast to be between 10,000 and 10,500 bopd generating approximately $160 million in after tax cash flow for the year, based on an expected realized price of approximately $90.00 per barrel.

As at February 29, 2012, C&C Energia realized an average price of $109.88 on its sales generating operating netbacks of approximately $62.00 per barrel and had adjusted working capital of approximately $81.5 million, including cash of $112 million.

Llanos Basin

In the past 90 days, the Corporation completed drilling three wells in the Llanos Basin, two exploration wells and one injection well. On the Cravoviejo Block (100% working interest), the Corporation has recently completed the drilling and completion of the Abedus-3 exploration well and the Carrizales-19 injection well. The Abedus-3 well encountered pay in the Carbonera C5 formation and tested 29°API oil with high water cut. The Corporation intends to commence production after it installs an ESP and runs a flow-line back to the Carrizales facilities.

The Carrizales-19 injection well is the second water injection well to be used in a Gacheta water flood program on the Cravoviejo block. The Corporation began injecting water into the formation in late 2011 and has experienced positive pressure response and production increases. The full impact on production and reserves in the Gacheta reservoir will be determined as further results are assessed.

C&C Energia has identified additional potential development locations on the recently discovered Zopilote field. Two of these locations will be drilled during the second quarter, targeting development of the Gacheta formation. If successful, these wells will be completed and brought on production by the end of the second quarter.

The Saimiri-1 exploration recently commenced drilling. The well is on-trend with the Zopilote and Heredia fields on the Cravoviejo Block and, if successful, production could be brought on within approximately 30 days of completion.

The IVF-2 exploration well on the Cachicamo Block (100% working interest) was drilled to a measured depth of 7,783 feet. The well was logged and subsequently plugged and abandoned. The Corporation plans to drill at least six additional exploration wells on Cachicamo commencing in early third quarter 2012.

C&C Energia spud the Tormento-1 well in late March on the Llanos-19 Block (100% working interest). The well is intended to be drilled to 14,850 feet targeting three potential oil bearing reservoirs. Results are expected in mid to late second quarter 2012.

On the Pajaro Pinto Block (100% working interest), the Corporation has commenced civil works on the Lagarto-1 well and expects to spud this exploration well in late Q2 2012.

Putumayo Basin

C&C and its partner, Canacol Energy Ltd., are currently evaluating the results of the recently announced exploration wells, Cachalote-1 and Tardigrado-1 on the Andaquies Block (64% working interest). These wells encountered prospective Neme and Caballos sandstone reservoirs with good porosity and oil shows but were water bearing and were plugged and abandoned. C&C and its partner will determine the future exploration plans for this block, after a full evaluation of the drilling results and seismic data.

The Corporation, together with its partner VETRA Exploration and Production Colombia S.A.("VETRA"), has designed a 95 km2 3D seismic program on the Putumayo-8 Block (50% working interest). The program is expected to commence in April and will assist in defining a well location for an exploration well planned for later in the fourth quarter 2012.

The Corporation is also pleased to announce that Mr. Ricardo Sarmiento recently joined the Corporation as the Vice President of Operations in the Bogota office. Mr. Sarmiento has over 20 years of experience in international oil and gas operations and has held positions with BP, LASMO Colombia, ENI S.p.A. and most recently as Technical and Development Manager of the Exploration and Production Division at Ecopetrol SA in Colombia.

The Corporation today announced that it has updated its Corporate Presentation on its website at www.ccenergialtd.com.


The Corporation, through its subsidiary Grupo C&C Energia (Barbados) Ltd., is engaged in the exploration for and 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 over 626,000 acres (508,000 net acres) in Colombia, the Corporation's management expects that C&C Energia 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 Energia.

Forward-looking information in this press release includes, but is not limited to, information concerning the expectations of the Corporation with respect to future production (including the estimated average production for 2012 and expected after tax cash flow for 2012), the Corporation's drilling plans, plans and expectations regarding the completion of certain of the Corporation's wells and expected future production from such wells and management's expectations regarding potential future production and reserve growth. 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. In particular, the Corporation's expectations regarding average production for 2012 are based on assumptions that there will be no material disruptions to its operations or material difficulties in delivering oil during the year. Expectations regarding cash flow for 2012 are based on an expected average realized oil price of $90.00 and on assumptions that production will be as forecast and that there will not be any material increases to operating costs for the period.

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 Energia 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 Agencia Nacional de Hidrocarburos (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 Energia assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.

Netbacks are calculated based on revenues less royalties and operating costs.

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