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Canacol Energy (TSX:CNE) - Opportunity To Acquire Shares Ahead Of Upcoming Announcements

|Includes: Canacol Energy Ltd. (CNNEF)

A number of potential announcements may be forthcoming in the upcoming weeks and months from Canacol Energy that could be catalysts for the stock. We believe Canacol's share price is undervalued, and that there is a window of opportunity to currently acquire shares of Canacol before these potential announcements.

See Full Report Here: http://narrowgateinvesting.com/index.php/2017/03/01/canacol-energy-tsxcne-265m-refinancing-opportunity-to-acquire-shares-ahead-of-upcoming-announcements/

Potential Announcements Expected March-June 2017

A significant number of potential announcements are expected from Canacol Energy in the next 4-12 weeks including drill results for a number of oil and gas wells, 2016 full year earnings, 2017 capital plan, possible reserve update, and possible updates regarding the previously announced SPV pipeline (40 mmcf/d) and Promigas Pipeline (100 mmcf/d). Drill results for the following wells are expected:

  • Nelson-8 development well (CNE 100%) was spud on Nov 13, 2016, reached total depth of 10,985 ft md on Dec 2, 2016, and encountered 163 ft md of net gas pay with 19% porosity in CDO reservoir. The well was to be flow tested once it was tied into the Bretanna to Jobo flowline and this was expected to occur prior to the end of 2016. No flow test results have been announced yet for this well and we expect it to be forthcoming with other drill results.
  • Mono Capuchino-1 exploration well (CNE 66.7%), which targets light oil bearing reservoirs within the Cretaceous La Luna Formation, was spud on Dec 17, 2016. The well will be drilled to a planned total depth of 12,000 ft md, and is anticipated to take ~75 days to drill and test. If proven successful, Mono Capuchino-1 will be produced directly into existing infrastructure and immediately commercialized. We expect results for the Mono Capuchino-1 well will be announced in March 2017.
  • CNE plans to spud the Canahuate-1 gas exploration well (CNE 100%) in Feb 2017 targeting the CDO sandstone reservoir and the Pumara-1 light oil exploration well (CNE 91%) in early March 2017 targeting the reservoirs of C7, Mirador, Barco, Gacheta, and Ubaque sandstones. Both wells will be drilled to a planned total depth of ~10,000 ft md and are anticipated to take ~15 days to drill and test. Results for these two wells is expected between March-April 2017.

Conclusion

Canacol has a number of potential announcements between March-June 2017 that could be catalysts for the stock, including drill results for a number of oil and gas wells, 2016 full year earnings, 2017 capital plan, possible reserve update, and possible updates regarding the previously announced SPV pipeline (40 mmcf/d) and Promigas Pipeline (100 mmcf/d). We believe Canacol's share price is undervalued, and that there is a window of opportunity to currently acquire shares of Canacol before these potential announcements.

The February 2017 refinancing of Canacol's current loan facilities has further de-risked Canacol in the short term, and provides flexibility for Canacol to draw up to $40M in additional funds to finance exploration and development plans.

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