C&C Energia Ltd.

January 11, 2011 08:30 ET

C&C Energia Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Jan. 11, 2011) - C&C Energia Ltd. ("C&C Energia" or the "Corporation") (TSX:CZE) is pleased to provide an update on its operations in Colombia.

C&C Energia reports that it averaged production of 5,842 barrels of oil per day ("bopd") for the year ended December 31, 2010, a sixty percent increase over the 2009 average daily production, and exited the year at approximately 7,300 bopd.

In December 2010, the Corporation re-entered the Morpho-1 well (originally drilled and tested in 2009), and has completed and fracture stimulated three separate oil bearing sandstone reservoirs in the Colorado and Mugrosa formations at depths between 4,910 feet and 6,540 feet. The well has recently been placed on a long-term test to determine stabilized production rates. In addition, the Corporation has mobilized a service rig onto the Baco-1 well (drilled and cased in fall 2010) and will perforate 2 sandstone reservoirs at depths between 10,200 feet and 12,180 feet. Both of these wells are located on a large (4,000 acre) anticlinal structure in the Middle Magdalena Valley.

The Carrizales-14 well was TD'd on January 6, 2011 at an approximate depth of 8,950 feet. The well will be completed and testing will commence in the coming weeks.

The Corporation approved a capital investment budget for 2011 of US$130 to $145 million. Management of the Corporation expects that production for 2011 will range between 7,000 and 7,300 bopd from the Cravoviejo and Cachicamo blocks.

The Corporation is also pleased to announce that Gary Paukert has joined the C&C Energia team as Exploration Manager, South America and will work with Dr. Tomas Villamil (Senior Exploration Vice President) on the Corporation's Colombian exploration projects. Mr. Paukert is a Professional Geophysicist with 26 years of international experience, most recently with Talisman Energy. He has worked on projects in Latin America, Norway and North America.

A corporate presentation is available on the Corporation's website at www.ccenergialtd.com.

The Corporation, through its subsidiary Grupo C&C Energy (Barbados) Ltd., is engaged in the exploration for, and the acquisition, 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.


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 the Corporation's average annual production to the end of 2011, the Corporation's capital program for 2011, and the Corporation's 2011 operational plans and capital investment estimates. These forward-looking statements are subject to assumptions regarding the Corporation's operations and the operating environment in Colombia. Estimates of production are based on the assumptions that the Corporation's plans will be completed without any undue difficulty and that other costs will not rise. The Corporation's capital program and 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
    C&C Energia Ltd.
    Ken Hillier
    Chief Financial Officer