Canacol Energy provides the following information concerning the new Lulo 1 gas discovery in in Colombia and near term drilling plans.

Lulo 1 tests 22 MMscfpd

As announced on May 3, 2023, the Lulo 1 exploration well, located on the 100 percent operated VIM21 Exploration and Production (“E&P”) contract, encountered 207 feet of net gas pay within the Cienaga de Oro (“CDO”) sandstone reservoir.

Lulo 1 was permanently tied in and production tested through the Jobo gas processing facilities located 50 meters away at an average rate of approximately 17 million standard cubic feet per day (“MMscfpd”) for 7 days. The well was tested at various rates ranging from 3.9 MMscfpd to 22.2 MMscfpd with the choke varying between 19/128 and 39/128 inches and a final tubing head pressure of 2,042 psi at the rate of 22.2 MMscfpd, and is currently producing at a controlled rate of approximately 17 MMscfpd.

Lulo 2 drilling ahead

The Corporation commenced drilling of the Lulo 2 appraisal well on May 17, 2023, with the well anticipated to be completed and placed on production by the end of May 2023. It is anticipated that should Lulo 2 prove successful, the Lulo discovery, announced on May 3, 2023, will be capable of producing at a total rate of between 30 and 40 MMscfpd by early June 2023.

Near term exploration plans

Upon completion of the Lulo 2 well, the Corporation will mobilize the rig to commence drilling of the Piña Norte 1 exploration well, located approximately 300 meters to the southwest of the Jobo production facility. The Piña Norte prospect, like Lulo, is one of 5 exploration prospects identified within the middle to lower CDO sandstone reservoir within very close proximity to the Corporations main production facilities at Jobo. If successful, as is the case for Lulo, these near field exploration prospects can each provide new commercial production within weeks of discovery. The Corporation expects results from Piña Norte 1 by mid July, 2023, following which the Corporation plans to drill the Cereza 1 exploration well located approximately 1 kilometer to the north of the Jobo production facility.

Canacol’s near term drilling focus is to increase productive capacity ahead of the upcoming El Niño season to ensure the adequate supply of natural gas to the Caribbean market.

KeyFacts Energy: Canacol Energy Colombia country profile