Canacol Energy Ltd. (TSE:CNE), a junior Canadian oil company that operates in Colombia and Ecuador, rose in morning trades after saying it will start appraisal drilling at its Mono Arana oil discovery on the VMM2 exploration and production contract in Colombia.
Canacol advanced 4 percent to C$4.77 at 9:32 a.m. in Toronto. The shares had rallied approximately 44 percent this year through yesterday.
The appraisal program consists of the drilling of up to 6 wells and the construction of production facilities related to the appraisal and development of the Tertiary aged Lisama discovery at Mona Arana, the Calgary, Alberta-based company said in a statement today.
The first appraisal well, Mono Arana 2, is anticipated to spud the first week of December and is anticipated to be drilled to a depth of 6,675 feet measured depth to test the oil potential of the Lisama reservoir 0.6 kilometers to the south of the Mono Arana 1 discovery well.
In addition to the shallow drilling program at the Mono Arana discovery, production testing of the deeper Cretaceous La Luna Formation within the Mono Arana 1 well is anticipated to commence next month, Canacol said.