Canacol Energy Ltd. (CNEC), the Calgary based oil company that operates fields in South America, advanced from an 11 month low after saying it discovered a new pool at its main production field in Colombia.
Canacol rose 3.1 percent to 1,985 pesos in Bogota at 4 p.m. New York time. Shares fell to 1,925 pesos yesterday, the lowest since July.
The company said the C7 sandstone reservoir in the Rancho Hermoso 4 well flowed at an average rate of 1,785 barrels per day after a week of production testing.
“No reserves are currently attributed to the C7 reservoir, and based upon the positive test results, the corporation is formulating a plan to develop this new productive reservoir on a field-wide basis,” Canacol said in a statement on its website.
The company plans to develop four wells at the Hermoso field between July and year-end. Its total average net production was 11,799 barrels a day for May 2011, mostly from the Hermoso field, the statement said.
Canacol had fallen for three days in a row as investors waited for an update on exploration at the Hermoso field.
Oil rose, in the biggest two day rally in seven weeks in New York, after the U.S. government said supplies dropped almost three times as much as expected.
Canacol rose 3.1 percent to 1,985 pesos in Bogota at 4 p.m. New York time. Shares fell to 1,925 pesos yesterday, the lowest since July.
The company said the C7 sandstone reservoir in the Rancho Hermoso 4 well flowed at an average rate of 1,785 barrels per day after a week of production testing.
“No reserves are currently attributed to the C7 reservoir, and based upon the positive test results, the corporation is formulating a plan to develop this new productive reservoir on a field-wide basis,” Canacol said in a statement on its website.
The company plans to develop four wells at the Hermoso field between July and year-end. Its total average net production was 11,799 barrels a day for May 2011, mostly from the Hermoso field, the statement said.
Canacol had fallen for three days in a row as investors waited for an update on exploration at the Hermoso field.
Oil rose, in the biggest two day rally in seven weeks in New York, after the U.S. government said supplies dropped almost three times as much as expected.
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