Calgary-based Canacol Energy (OTC:CNNEF) Ltd., with operations in Colombia, has reported a recovery in its gas sales for October 2023. The natural gas exploration and production company had faced unexpected production capacity restrictions due to issues at the Jobo gas treatment facility and some wells since August. Despite these challenges, the firm managed to achieve realized contractual natural gas sales of 170 million standard cubic feet per day in October.
These production capacity constraints led to restricted gas deliveries under specific supply contracts. In response, Canacol has introduced remedial measures with the goal of normalizing production by the end of November. Additionally, the company aims to offset the lost sales volumes by year-end.
In its drilling operations, Canacol has successfully completed drilling at Pandereta 9 and Nelson 15 wells. These wells have hit net gas pay within the Cienaga de Oro sandstone target and are currently being connected to the Jobo facility. Production from these wells is expected to commence within a week.
Furthermore, Canacol plans to spud the Pandereta 10 well shortly and complete Clarinete 10 before the close of the year. However, these plans are not without their risks. The company's drilling operations are subject to industry-wide risks such as fluctuating energy prices, potential cost overruns, delays, and other unforeseen circumstances.
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