Oh no, yet another Canadian company!
C&C Energia, - company website here.
This time, the company is entirely focussed on Colombia with interests in 9 blocks, operating 7 of them. C&C has been very successful sticking to its knitting and production has risen form virtually nothing to 7,300 bopd at the end of 2010.
Here is the latest presentation for more information. Note that this was before the deal mentioned below.
As with Parex Resources, the company has just announced a major deal, buying out its partner, Ranshorn’s, interests in two of their blocks for $89M. This gives them 100% of the Cachicamo and Pajaro Pinto Block in the Llanos Basin (where PXT operates).
This was funded by a $100M bought deal at $12.10 per share, and, as with Parex is very positive for the company. The bought deal has just been completed. We took part in the bought deal.
Just like PXT, CZE will be very active this year with 23 wells planned (8 development and 15 explo) all funded with strong cash flow and a strong balance sheet.
On the matter of production, it should be noted (as can be seen from the presentation) that the company had significant behind the pipe volumes with roughly 1,000 bopd from the Cachicamo and 2,000 bopd shut in due to trucking constraints in Jan and Feb this year (there was a nationwide work stoppage by, IIRC, 180,000 truck drivers).
CZE is constructing a centralised production facility on its Carrizales field which should be starting up next month. This will allow the company to step up production from 7,300 bopd and should also cut between 20%-30% off opex. Central storage tanks are also being constructed to provide for 30k bbls of storage capacity.
So, another company with strong finances, well funded with a big explo programme to come. May be of interest to some.