Colombia: Canacol takes Putumayo farmouts

By OGJ editors
HOUSTON, June 3
– Canacol Energy Ltd., Calgary, will take farmouts from C&C Energia Ltd. to part of the operator's working interest in the Andaquies and Coati exploration and production contracts in Colombia’s Putumayo basin.

The contracts are royalty contracts and will add three light oil exploratory wells to Canacol’s four-well exploration program in Colombia in 2011. C&C Energia will continue as operator of both blocks.

Upon Canacol paying 72% of the cost associated with shooting seismic and drilling one exploratory well it will earn 36% of the operator’s 90% working interest in Andaquies E&P contract. Upon paying 80% of the cost associated with shooting seismic and drilling one exploratory well it will earn 40% of the operator’s 100% working interest in Coati.

C&C Energia will drill the three exploratory wells in the second half of 2011, two on Andaquies and one on Coati, pending approvals.



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