Canacol Energy sees 2024 capital budget $138M-$151M

Canacol Energy provides its capital and gas sales guidance for 2024. The Corporation announces that its 2024 capital budget is between $138 million and $151 million. Forecast average realized contractual gas sales for 2024, which include downtime, are anticipated to range between 160 and 177 million cubic feet per day. The Corporation’s firm 2024 take-or-pay contracts alone average 124 MMcfpd, net of contractual downtime. The average wellhead sales price, net of transportation costs, is approximately $6.04/Mcf for our firm take-or-pay contracts. The average wellhead sales price net of transportation costs, is expected to average $6.59/Mcf. Forecast interruptible sales include potential sales to the Celsia-operated Tesorito gas-fired power plant, in which the Corporation holds a 10% stake. The plant operates intermittently to supply electricity to the national grid during periods of high electrical demand. When operating at full capacity the plant will consume approximately 40 million standard cubic feet per day to generate around 200 MW of electricity. Charle Gamba, President and CEO of Canacol, stated: “As we previously stated, the Corporation’s long-term plan is focused on i) maintaining and growing our reserve base and production from our core assets in the Lower Magdalena Valley Basin, targeting the full use of existing transportation infrastructure; ii) exploring high impact exploration opportunities in the Middle Magdalena Valley Basin; iii) strategic entrance into the gas market in Bolivia, and iv) continue to improve our ESG scores. For 2024, the Corporation is focused on the following objectives: 1) In line with maintaining and growing our reserves and production in our core gas assets in the Lower Magdalena Valley Basin we have planned comprehensive development and exploration programs. We aim to optimize our production and increase reserves by drilling up to 5 development wells, install new compression and processing facilities as required, and workover operations of producing wells in our key gas fields. We will also drill 4 exploration wells, complete the acquisition of 249 square kilometers of 3D seismic to add new reserves and production and to identify new drilling prospects. These development and exploration activities are planned to support our robust EBITDA generation and allow us to capitalize on strong market dynamics in 2024. 2) Maintaining a low cost of capital, cash liquidity and balance sheet flexibility to invest for the long term. In a year of expected, highly supportive gas market dynamics, we are tactically prioritizing investments in the LMV and have therefore decided to postpone drilling of the Pola 1 exploration well located in the Middle Magdalena Valley Basin to 2025. 3) Bolivia: achieve the government’s approval of a fourth E&P contract that covers an existing gas field reactivation, to begin development operations with a view to adding reserves and production and commencing gas sales in 2025. 4) Continue with our commitment to our environmental, social and governance strategy.”