The Corporation announces that its 2024 capital budget is between
Forecast interruptible sales include potential sales to the Celsia-operated Tesorito gas-fired power plant, in which the Corporation holds a 10% stake. The plant operates intermittently to supply electricity to the national grid during periods of high electrical demand. When operating at full capacity the plant will consume approximately 40 million standard cubic feet per day to generate around 200 MW of electricity.
Corporate Strategy Update
For 2024, the Corporation is focused on the following objectives:
1) In line with maintaining and growing our reserves and production in our core gas assets in the
2) Maintaining a low cost of capital, cash liquidity and balance sheet flexibility to invest for the long term. In a year of expected, highly supportive gas market dynamics, we are tactically prioritizing investments in the LMV and have therefore decided to postpone drilling of the Pola 1 exploration well located in the
3) Bolivia: achieve the government’s approval of a fourth E&P contract that covers an existing gas field reactivation, to begin development operations with a view to adding reserves and production and commencing gas sales in 2025.
4) Continue with our commitment to our environmental, social and governance strategy.
2024 Corporate Guidance
Provided below is the Corporation’s guidance for 2024:
Highlights | 2023E | 2024 Low End Guidance | 2024 High End Guidance |
Natural Gas Sales Volume (MMcfpd) | 178 | 160 | 177 |
EBITDA ($ millions) | 236 | 250 | 290 |
Capital Expenditures ($ millions) | 205 | 138 | 151 |
2024 Capital Program
2023E | 2024 Low End Guidance | 2024 High End Guidance | ||||
Development and Maintenance | ||||||
Exploration (Wells, Seismic, and EIA) | ||||||
Administrative, social, environmental and other | ||||||
Total capital expenditures |
The 2024 capital program balances the continued development of our existing reserves to optimize our production with exploration, targeting the addition of new reserves and production.
During the first half of 2024, we are planning an active development drilling and workover program, coupled with investments in additional compression and processing facilities, to ensure that sufficient productive capacity exists to meet potentially high gas demand during the first half of 2024 related to the effects of El Nino. Our development plans include the drilling of up to 5 new wells. Our exploration plans include the drilling of 2 relatively low risk Cienaga de
2024 Financial Highlights
2023E | 2024 Low End Guidance | 2024 High End Guidance | |||||||
Natural gas sales volume (MMcfpd) | 178 | 160 | 177 | ||||||
Interruptible spot sales as a % of total | 17% | 23% | 30% | ||||||
Average gas sales price ($/Mcf) | |||||||||
Netback ($/Mcf) | |||||||||
EBITDA ($ millions) | |||||||||
Capital expenditures ($ millions) |
As we have stated before, one of our long-term corporate objectives is to reduce debt. However, given current favorable gas market dynamics, the Corporation has decided to maintain substantial investments in its key producing blocks located in the
A 5% increase/decrease in average sales price (+/-
The Corporation will continue to evaluate the Return of Capital to Shareholders on a quarterly basis, in accordance with the Corporation's policy, aiming to achieve a balanced assessment of the Corporation’s strategy while being conscious of the diverse interests of our stakeholders.
The Corporation will provide regular production and operational updates on a quarterly basis starting with the first quarter of 2024. Material changes with respect to gas sales, exploration drilling results, or any other matters during the quarter will continue to be disclosed in accordance with applicable material information disclosure requirements.
About Canacol
Canacol is a natural gas exploration and production company with operations focused in
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such statements can generally be identified by words such as "may," "target," "could," "would," "will," "should," "believe," "expect," "anticipate," "plan," "intend," "foresee" and other similar words or phrases. In particular, forward-looking statements herein include, but are not limited to, statements relating to the expectations regarding the use of proceeds of the proposed offering. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Canacol believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Canacol assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Canacol and its securities can be found in the disclosure documents filed by Canacol with the securities regulatory authorities, available at www.sedar.com.
For more information please contact: Investor RelationsSouth America : +571.621.1747 IR-SA@canacolenergy.com Global: +1.403.561.1648 IR-GLOBAL@canacolenergy.com
Source:
2024 GlobeNewswire, Inc., source