C&C Energia Ltd.

C&C Energia Ltd.

June 05, 2012 17:04 ET

C&C Energia Ltd. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - June 5, 2012) - C&C Energia Ltd. ("C&C" or the "Corporation") (TSX:CZE) is pleased to provide an operations update on its current activities in Colombia.

In the past 60 days the Corporation completed the drilling of five wells (three exploratory tests, and two development wells) in the Llanos Basin.

On the Cravoviejo block (100% working interest) an exploratory well was drilled and completed at Saimiri-1 on the west side of the block approximately 3.5 km northeast of the Zopilote field. Saimiri-1 was drilled to 10,267 measured depth and completed in the Gacheta Formation over the interval 9,852 feet to 9,865 feet. Saimiri-1 was placed into production on June 2, 2012 at a rate of approximately 300 bopd of 24° API oil. In the Zopilote field, the Zopilote-8 well was drilled and completed in the Gacheta Formation and is expected to be placed on production over the next five to seven days. The pre-production test rates were 285 bopd of 17° API oil. Zopilote-11 recently reached total depth of 9,131 feet and has been cased to total depth and is currently being completed and tested in the Gacheta Formation.

On the Llanos-19 block (100% working interest), the Tormento-1 well was recently drilled to a total measured depth of 15,166 feet and has been completed successfully in the Gacheta and Mirador Formations. The lower Gacheta Formation is 30 feet thick with 16 feet (gross and net) of oil pay. The Gacheta was perforated over the interval 14,482 feet to 14,490 feet and tested over a 27 hour period 700 bopd with a 0.1% water cut and an oil gravity of 26° API.

The Mirador Formation in Tormento-1 is 34 feet thick with 28 feet of net pay. It was perforated over the interval 13,286 feet to 13,296 feet and tested over a 34 hour period at 670 bopd with a 0.4% water cut and an oil gravity of 23° API. C&C initially intends to place the Mirador on a long-term production test after pressure build up analysis.

Richard Walls, President and CEO, stated that "The Corporation is pleased with the two new exploratory discoveries at Sairmiri-1 and Tormento-1. The Gacheta discovery at Saimiri is lighter oil relative to other Gacheta reservoirs (at Zopilote and Carrizales) on the Cravoviejo block and we see further potential follow-up locations. Tormento-1 is a significant dual zone discovery in a new area for C&C."

On the Pajaro Pinto block (100% working interest) the Lagarto-1 well recently reached total measured depth of 10,012 feet. Both the Ubaque and Mirador Formations tested water on MDT's and the well subsequently was plugged and abandoned. C&C is evaluating the well results to determine its go forward plans relating to the Pajaro Pinto block.

In addition to the foregoing, a 95Km2 3-D seismic survey commenced in May on the Corporation's Putumayo 8 Block (102,800 acres, 50% working interest). The Corporation plans to spud an exploratory well on this block by year-end.

As previously disclosed, the Corporation had approximately 325,000 barrels (net of royalty barrels) of oil inventory at the end of the first quarter. In April, oil deliveries to the Vasconia loading terminal were curtailed as a result of a pump failure at the station and due to a planned turn-around at the nearby Barrancabermeja refinery. Despite these challenges, the Corporation was able to reduce its inventory levels to approximately 126,000 barrels of oil as at May 31, 2012. Current production rate is 10,700 bopd, and production forecasts for the quarter and full year remain unchanged.


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 moderate risk. With a total of eight blocks (seven operated) and approximately 597,000 acres (478,000 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.

Forward-looking information in this press release includes, but is not limited to, information concerning the expectations of the Corporation with respect to the Corporation's future production for the second quarter of 2012 and for 2012 as a whole and the Corporation's drilling plans in each of the Cravoviejo block, Llanos-19 block and Pajaro Pinto block. These forward-looking statements are subject to assumptions regarding the Corporation's operations and the operating environment in Colombia. In particular, estimates of production for the second quarter of 2012 and for 2012 as a whole and the Corporation's expected drilling plans are based on the assumptions that the Corporation's plans will be completed without any undue difficulty, that costs will not rise significantly and that events will not cause disruptions in the delivery of the Corporation's oil production to market. The Corporation's capital program and drilling 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, potential risks arising from trucking and other delivery disruptions), 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