In a June 3 research note, Research Capital Corp. analyst Bill Newman reported in an exploration update that Canacol Energy Ltd. (CNE:TSX; CNNEF:OTCQX) encountered its thickest gas column to date with exploration well Aguas Vivas 1 in Colombia.
"The Aguas Vivas 1 well could add substantial new reserves and production capacity," Newman wrote.
He noted that with drilling down to 7,852 feet in the Cienega de Oro sandstone, the well hit 412 vertical feet of net gas pay with an average porosity of 22%. In comparison, the previous well with the thickest net gas pay, Clarinete 5, encountered 309 feet of net gas pay.
Canacol intends to test Aguas Vivas 1, preparations for which are under way. Tie-in for production is to be done soon.
"We look forward to the production test results, which are expected within the next two weeks," Newman wrote.
The Canadian energy company also plans to drill at least two additional appraisal wells.
Research Capital has a Buy rating and a CA$6.50 per share target price on Canacol, the current share price of which is about CA$3.49.
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Disclosures from Research Capital, Canacol Energy Ltd., June 3, 2021
RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
1. None Applicable for this Issuer
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ANALYST CERTIFICATION
I, Bill Newman, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report.
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.
