C&C Energia Ltd.
TSX : CZE

C&C Energia Ltd.

November 02, 2011 08:40 ET

C&C Energia Ltd. Provides Zopilote Discovery/Appraisal and Production Update

CALGARY, ALBERTA--(Marketwire - Nov. 2, 2011) - C&C Energia Ltd. ("C&C" or the "Corporation") (TSX:CZE) is pleased to provide an update of its Zopilote discovery in Colombia.

Appraisal drilling is continuing in C&C's 100% working interest Zopilote field located on the west side of the Cravoviejo block. Zopilote-1, drilled in March 2011, has produced just over 240,000 barrels of 32.7º API oil and the well remains on natural flow of 1,400 bbls/d on a 30/64" choke at 150 PSI flowing tubing pressure. Production is from 37 feet of net pay in a C-5 reservoir. Additionally, the Gacheta formation tested 800 bbls/d of 17º API oil from 20 feet of net pay in the Zopilote-1 well. Both zones have been completed and the well currently is only producing from the C-5 Formation.

C&C recently drilled two wells, Zopilote-2 and Zopilote-5, both south of the Zopilote-1 discovery well to appraise the size of the Zopilote field. Zopilote-2 discovered 26 feet of net pay in the C-5 Formation and 62 feet of net pay in the Gacheta Formation. The C-5 reservoir has been completed and is producing 800 bbls/d of 33º API oil on a 16/64" choke at 300 psi flowing tubing pressure. Additionally, the Gacheta Formation in the Zopilote-2 well tested approximately 400 bbls/d of 17º API oil. Both zones have been completed and the well is currently producing from the C-5 reservoir.

C&C's latest appraisal well, Zopilote-5, was drilled and cased to a total depth of 10,192 feet. The Gacheta formation was completed and tested at 420 bbls/d over the interval of 9,736-9,748 feet. C&C plans to also complete the two C-5 sands between the interval 8,810-8,838 feet within 7 to 10 days.

Before the end of the year C&C plans to drill and complete two additional wells on the north end of the Zopilote field. The Corporation will finalize its production plans for the Zopilote field after full appraisal of all test results to determine how to most effectively produce both the C-5 and Gacheta reservoirs.

C&C's production for the month of October averaged 10,250 bbls/d.

In other developments, C&C recently commenced construction of civil works for the Tardigrado-1 and Cacholate-1 wells to be drilled on two separate prospects on C&C's Andaquies block in the Putumayo basin, C&C is the operator with 54% working interest. C&C plans to spud the first well in December 2011. On the Llanos 19 block C&C has received drilling permits for two wells, Langur-1 and Tormento-1, and civil works for these locations have commenced. C&C has 100% working interest in the Llanos 19 block.

C&C Energia plans to release its unaudited interim operating and financial results for the three months ended September 30, 2011 on November 10, 2011.

ABOUT C&C ENERGIA LTD.

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 nine blocks (eight operated) and over 678,000 net acres in Colombia, the Corporation's management expects that C&C Energia has considerable upside for future production and reserve growth.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

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, 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,. 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 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 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.

Contact Information

  • C&C Energia Ltd.
    Richard A. Walls
    President and Chief Executive Officer
    403-262-6046

    C&C Energia Ltd.
    Ken Hillier
    Chief Financial Officer
    403-930-0120

    C&C Energia Ltd.
    Tyler Rimbey
    Vice President, Business Development
    403-930-0118