Canacol Energy has increased its budget for 2015.
The Colombian-based firm has upped its spending in light of newly acquired contracts and a major gas discovery.
Last year, the company executed three new gas sales contracts for a combined 65 million standard cubic feet per day.
The contracts have a five year term, with pricing of of $5.40/MMbtu (US$ 30.78/boe) escalated at 2% per year for two of the contracts totalling 35 MMcfpd, and US$8.00/MMbtu (US$ 45.60/boe) escalated at approximately 3% per year for the third contract of 30 MMcfpd.
The Clarinete 1 exploration well, drilled on the VIM 5 contract, encountered approximately 150 feet of net gas pay within the main Cienaga de Oro sandstone reservoir, with a pre drill best estimate of approximately 540 billion cubic feet (95 million/boe) of gross unrisked prospective resource.
When testing operations are complete, the rig will be mobilised to start production of the Corzo 1 gas discovery on the adjacent Esperanza contract.
Upon making the Clarinete 1 and Corozo 1 gas discoveries in November, the drilling of the Canandonga 1 exploration well on the Esperanza contract was deferred, and drilling began on the Nelson 5 development well at its operated Nelson gas field.
The Nelson 5 well reached total depth on December and encountered 117 feet of net gas pay within the Cienaga de Oro sandstone, the main producing reservoir within the Nelson gas field, with an average porosity of 22%.
The Nelson 5 well is currently being tied into the gas gathering system at the Nelson field.
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