CALGARY, Alberta, March 20, 2025 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. ("Canacol” or the "Corporation”) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to report its conventional natural gas, light, medium, and heavy crude oil reserves, and deemed volumes for the fiscal year end December 31, 2024. The Corporation's conventional natural gas reserves are located in the Lower Magdalena Valley basin, Colombia. Canacol has light and medium crude oil reserves located in the Middle Magdalena Valley basin, Colombia and light, medium, and heavy crude oil reserves and deemed volumes in the Llanos basin, Colombia.
Canacol Energy Ltd Gross Conventional Natural Gas, Light/Medium/Heavy Crude Oil Reserves and Deemed Volumes Summary(1)(5)
| Proved Developed Producing | Proved Developed Not Producing | Proved Undeveloped | Total Proved | Total Proved + Probable | Total Proved + Probable
+ Possible | ||
| Product Type | ("PDP") | ("PDNP") | ("PUD") | ("1P") | ("2P") | ("3P") | |
| Conventional natural gas and light/medium/heavy crude oil(4) | Bcfe(2) | 67.8 | 150.8 | 35.6 | 254.1 | 598.8 | 1,120.7 |
| Total oil equivalent | MMBOE(2) | 11.9 | 26.4 | 6.3 | 44.6 | 105.1 | 196.6 |
| Before tax NPV-10(3) | MM US$ | $263.1 | $744.2 | $110.6 | $1,117.9 | $2,591.6 | $4,367.8 |
| After tax NPV-10(3) | MM US$ | $263.1 | $744.2 | $77.1 | $1,084.4 | $1,987.2 | $3,045.7 |
| (1) All reserves are represented at Canacol's working interest share before royalties. | |||||||
| (2) The term "BOE” means a barrel of oil equivalent and the term "cfe” means cubic feet equivalent of natural gas on the basis of 5.7 thousand standard cubic feet ("Mcf”) of natural gas to 1 barrel of oil ("bbl”) as per Colombian regulatory practice. | |||||||
| (3) Net Present Value (NPV) is stated in millions of USD and is discounted at 10 percent. | |||||||
| (4) Conventional light/medium/heavy crude oil includes deemed volumes of 263 mbbls PDP, 276 mbbls 1P, 382 mbbls 2P, and 511 mbbls 3P. Deemed volumes are derived from Rancho Hermoso volumes that are operated but not owned by Canacol where Canacol receives a tariff. They are calculated by multiplying the 100% sales volumes by the ratio of the tariff received divided by the sales price of the light/medium/heavy crude oil that Canacol receives a tariff for. | |||||||
| (5) The numbers in this table may not add due to rounding. | |||||||
Conventional Natural Gas and Light/Medium/Heavy Crude Oil Proved + Probable Reserves and Deemed Volumes ("2P”):
- 2P before tax NPV-10 of US$2.6 billion at December 31 ,2024, a 21% increase over the prior year value of US$2.1 billion at December 31, 2023
- 2P after tax NPV-10 of US$2.0 billion at December 31, 2024, a 13% increase over the prior year value of US$1.8 billion at December 31, 2023.
- Decreased by 1.4% since December 31, 2023, totaling 599 billion standard cubic feet equivalent ("Bcfe”) at December 31, 2024, with a before tax value discounted at 10% of US$2.6 billion, representing both CAD$109.37 per share of reserve value, and CAD$79.12 per share of 2P net asset value (net of US$716.8 million of net debt)
- Reserve replacement of 85% based on calendar 2024 conventional natural gas, light/medium/heavy crude oil reserves, and deemed volume additions of 48.5 Bcf, -0.05 MMBbls, and 0.26 MMBbls, respectively, totaling 50 Bcfe
- 2P Finding and Development Cost ("F&D”) of US$3.67 / Mcfe for the three-year period ending December 31, 2024
- Recycle ratio of 1.3x for the year ended December 31, 2024 (calculated based on the conventional natural gas and light/medium/heavy crude oil netback of US$5.31 / Mcfe for the year ended December 31, 2024)
- Recycle ratio of 1.2x for the three-year period ending December 31, 2024 (calculated based on the weighted average conventional natural gas and light/medium/heavy crude oil netback of US$4.33 / Mcfe for the years ended December 31, 2024, 2023 and 2022)
- Reserves life index ("RLI”) of 10.2 years based on annualized fourth quarter 2024 conventional natural gas and light/medium/heavy crude oil production of 161,290 thousand standard cubic feet equivalent per day ("Mcfepd”) or 28,296 barrels of oil equivalent per day ("BOEPD”)
- RLI of 10.3 years based on conventional natural gas and light/medium/heavy crude oil production guidance of 159,000 Mcfepd for calendar 2025 (high end 2025 production guidance as announced February 24, 2025)
- Decreased by 13.9% since December 31, 2023, totaling 254 Bcfe at December 31, 2024, with a before tax value discounted at 10% of US$1.1 billion, representing both CAD$47.18 per share of reserve value, and CAD$16.93 per share of 1P net asset value (net of US$716.8 million of net debt)
- Reserve replacement of 30% based on calendar 2024 conventional natural gas, light/medium/heavy crude oil reserve, and deemed volume additions of 16.2 Bcf, -0.04 MMBbls, and 0.2 MMBbls, respectively, totaling 17 Bcfe
- 1P F&D of US$6.85 / Mcfe for the three-year period ending December 31, 2024
- RLI of 4.3 years based on annualized fourth quarter 2024 conventional natural gas and light/medium/heavy crude oil production of 161,290 Mcfepd or 28,296 BOEPD
- RLI of 4.4 years based on conventional natural gas and light/medium/heavy crude oil production guidance of 159,000 Mcfepd for calendar 2025 (high end 2025 production guidance as announced February 24, 2025)
- Increased by 7.5% since December 31, 2023, totaling 1,121 Bcfe at December 31, 2024, with a before tax value discounted at 10% of US$4.4 billion, representing both CAD$184.34 per share of reserve value, and CAD$154.09 per share of 3P net asset value (net of US$716.8 million of net debt)
- Reserve replacement of 234% based on calendar 2024 conventional natural gas, light/medium/heavy crude oil reserve, and deemed volume additions of 135.1 Bcf and -0.1 MMBbls, and 0.3 MMBbls, respectively, totaling 136 Bcfe
- 3P F&D of US$1.96 / Mcf for the three-year period ending December 31, 2024
- RLI of 19.0 years based on annualized fourth quarter 2024 conventional natural gas and light/medium/heavy crude oil production of 161,290 Mcfepd or 28,296 BOEPD
- RLI of 19.3 years based on conventional natural gas and light/medium/heavy oil production guidance of 159,000 Mcfepd for calendar 2025 (high end 2025 production guidance as announced February 24, 2025)
Discussion of Year Ended December 31, 2024 Reserves Report
During the year ended December 31, 2024, the Corporation recorded increases in certain reserve categories due to both new gas discoveries and positive technical revisions of existing producing gas fields.
The following tables summarize information from the independent reserves report prepared by Boury Global Energy Consultants Ltd. ("BGEC”) effective December 31, 2024 (the "BGEC 2024 report”). The BGEC 2024 report covers 100% of the Corporation's conventional natural gas and light/medium/heavy oil reserves and deemed volumes.
The BGEC 2024 report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook”) and National Instrument NI 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101”). Additional reserve information as required under NI 51-101 is included in the Corporation's Annual Information Form, which will be filed on SEDAR by March 31, 2025.
Canacol Gross Natural Gas, Light/Medium/Heavy Crude Oil Reserves and Deemed Volumes for the Year Ended December 31, 2024(1)
| Reserve Category(2) | 31-Dec-23 | 31-Dec-24 | Difference | |||
| (MMcfe) | (MMcfe) | (%) | ||||
| Total Proved (1P) | 295,171 | 254,149 | -13.9 | % | ||
| Total Proved + Probable (2P) | 607,343 | 598,822 | -1.4 | % | ||
| Total Proved + Probable + Possible (3P) | 1,042,940 | 1,120,732 | +7.5 | % | ||
| (1) The numbers in this table may not add due to rounding. (2) All reserves are Canacol working interest before royalties. | ||||||
| Reserve | |||||||
| Report Date | 2025 | 2026 | 2027 | 2028 | 2029 | ||
| Volume weighted Total Proved + Probable (2P) average gas price(2) | US$/Mcf | 31-Dec-24 | 6.81 | 7.26 | 8.89 | 9.21 | 10.36 |
| Chimela Realized Oil Price- net of quality offset and transportation(3) | US$/bbl | 31-Dec-24 | 60.32 | 62.32 | 63.82 | 65.32 | 67.32 |
| Rancho Realized Oil Price- net of quality offset and transportation(4) | US$/bbl | 31-Dec-24 | 70.94 | 73.94 | 75.94 | 77.44 | 79.44 |
| (1) The numbers in this table may not add due to rounding. | |||||||
| (2) The gas price forecast is based on existing long term contracts net of transportation (if applicable) and adjusted for inflation, along with interruptible gas sales pricing. | |||||||
| (3) The Chimela oil price forecast is based on BGEC's Brent forecast less US$16.18/bbl for quality offset and transportation costs. | |||||||
| (4) The Rancho Hermoso non-tariff oil price forecast is based on BGEC's WTI forecast less US$0.50/bbl for quality offset and transportation costs. Additionally, Canacol receives tariffs of $17.36/bbl for Mirador production (currently producing at RH10), $17.36/bbl escalated with inflation for RH11 and RH16 production ($20.32/bbl in January 2025), and a tariff between $14.50/bbl and $26.00/bbl that fluctuates with Brent pricing ($20.06/bbl in January 2025). | |||||||
| Before tax | After tax | ||||||||||
| Net Asset | Net Asset | ||||||||||
| Value | Value | ||||||||||
| Reserve Category | 31-Dec-24 | 31-Dec-24 | 31-Dec-24 | 31-Dec-24 | |||||||
| (M US$)(2) | (C$/share)(3) | (M US$)(2) | (C$/share)(3) | ||||||||
| Total Proved (1P) | $ | 1,117,924 | $ | 16.93 | $ | 1,084,442 | $ | 15.52 | |||
| Total Proved + Probable (2P) | $ | 2,591,564 | $ | 79.12 | $ | 1,987,150 | $ | 53.61 | |||
| Total Proved + Probable + Possible (3P) | $ | 4,367,785 | $ | 154.09 | $ | 3,045,662 | $ | 98.29 | |||
| (1) The numbers in this table may not add due to rounding. | |||||||||||
| (2) Net present value is stated in thousands of USD and is discounted at 10 percent. The forecast prices used in the calculation of the present value of future net revenue are based on the price deck described above. The BGEC forecast for conventional natural gas, light/medium/heavy crude oil, and deemed volume prices at December 31, 2024 are included in the Corporation's Annual Information Form. | |||||||||||
| (3) Net asset value ("NAV") is calculated as at December 31, 2024 NPV10 less estimated net debt of US$716.8 million (being US$762.3 million of total debt less working capital surplus of US$45.5 million) divided by 34.1 million basic shares outstanding as at December 31, 2024. NAV calculations are converted to $CAD at December 31, 2024 effective rate of USD:CAD =1.44. | |||||||||||
| Reserve Category | 31-Dec-23 | 31-Dec-24 | |
| (yrs)(3) | (yrs)(4) | ||
| Total Proved (1P) | 4.8 | 4.3 | |
| Total Proved + Probable (2P) | 9.9 | 10.2 | |
| Total Proved + Probable + Possible (3P) | 17.0 | 19.0 | |
| (1) The numbers in this table may not add due to rounding. | |||
| (2) "RLI” Reserve Life Index is calculated by dividing the applicable reserves category by the annualized fourth quarter production. | |||
| (3) Calculated using average 3 month ending December 31, 2023 conventional natural gas and light/medium/heavy crude oil production of 168,127 Mcfepd or 29,496 BOEpd annualized. | |||
| (4) Calculated using average 3 month ending December 31, 2024 conventional natural gas and light/medium/heavy crude oil production of 161,290 Mcfepd or 28,296 BOEpd annualized. | |||
| Total Oil | Light/Med Crude Oil | Heavy Crude Oil | Conventional Natural Gas | NGL | TOTAL | |||||
| PROVED DEVELOPED PRODUCING | (MBBL) | (MBBL) | (MBBL) | (MMCF) | (MBBL) | MBOE | ||||
| Opening Balance (December 31, 2023) | 583 | 445 | 137 | 94,997 | - | 17,249 | ||||
| Extensions | - | - | - | - | - | - | ||||
| Improved Recovery | - | - | - | - | - | - | ||||
| Technical Revisions(2) | 83 | (121) | 204 | 14,683 | - | 2,659 | ||||
| Discoveries(4) | - | - | - | 12,543 | - | 2,201 | ||||
| Acquisitions | - | - | - | - | - | - | ||||
| Dispositions | - | - | - | - | - | - | ||||
| Economic Factors | - | - | - | - | - | - | ||||
| Production | (196) | (78) | (118) | (57,144) | - | (10,221) | ||||
| Closing Balance (December 31, 2024) | 470 | 246 | 224 | 65,079 | - | 11,887 | ||||
| Total Oil | Light/Med Crude Oil | Heavy Crude Oil | Conventional Natural Gas | NGL | TOTAL | |||||
| TOTAL PROVED | (MBBL) | (MBBL) | (MBBL) | (MMCF) | (MBBL) | MBOE | ||||
| Opening Balance (December 31, 2023) | 1,523 | 1,311 |
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