Last close As at 05/08/2026
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Research: Energy & Resources
Canacol Energy issued an operational update on 3 August that included gas sales and drilling plans. July 2023 gas sales were 197mmcf/day, in line with sales a year earlier. However, perhaps more importantly, the group is mobilising two additional rigs to increase production capacity to meet potential higher demand due to the emerging El Niño effect.
Canacol Energy |
Increasing activity |
Operational update |
Oil and gas |
4 August 2023 |
Share price performance
Business description
Analyst
Canacol Energy is a research client of Edison Investment Research Limited |
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Canacol Energy issued an operational update on 3 August that included gas sales and drilling plans. July 2023 gas sales were 197mmcf/day, in line with sales a year earlier. However, perhaps more importantly, the group is mobilising two additional rigs to increase production capacity to meet potential higher demand due to the emerging El Niño effect.
Year end |
Revenue |
EBITDAX* (US$m) |
Cash flow |
Net debt |
Capex |
Yield |
12/22 |
336 |
198 |
185 |
438 |
(180) |
8.9 |
12/23e |
351 |
218 |
190 |
481 |
(150) |
8.9 |
12/24e |
364 |
217 |
197 |
503 |
(160) |
8.9 |
12/25e |
530 |
365 |
301 |
486 |
(180) |
8.9 |
Note: *Earnings before interest, tax, depreciation, amortisation and exploration write-off.
Canacol Energy has announced that it achieved gas sales of 197mmcf/day in July 2023. This represents a 6% increase on the 186mmcf/day seen in June but is in line with sales seen a year earlier. This is also in line with management guidance of 160–206mmcf/day. The developing El Niño effect in the Eastern Pacific Ocean may result in water shortages affecting hydroelectric power generation in Colombia, which could lead to increased demand for gas. This could result in higher gas sales for Canacol in the second half of the year.
Canacol is eager to build productive gas capacity to meet this anticipated increase in gas demand. As such, the group is mobilising two more rigs to increase exploration and development drilling. Investors should see the increase in activity as positive as this has the potential to grow the reserve and resource base of the company, which is one of the main drivers of shareholder value.
The group’s current rig is drilling ahead on the Pina Norte prospect in the VIM 21 licence, which is very close to the Jobo production facility. The initial exploration well (Pina Norte 1) had to be abandoned after it encountered a shallow high-pressure zone. The second well on this prospect (Pina Norte 2) is drilling ahead and is expected to complete within approximately two weeks. The rig will then move to drill the nearby Mafaldine prospect in the same licence.
Canacol is mobilising two additional drilling rigs. The first will drill the Cereza 1 exploration well, which is also located in the VIM 21 licence. This will spud in mid-August and take approximately four weeks to drill. The second rig will drill a development well on the Aguas Vivas field.
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Research: TMT
Filtronic is focused on market niches where its specialist expertise in designing and manufacturing high-performance radio frequency (RF) components and subsystems operating at frequencies up to 180GHz can command a premium. Management’s strategic priority is to broaden the customer base and product range and optimise the utilisation of its RF manufacturing capacity. Factoring in improved component availability and recent contract wins, we forecast a return to revenue and EBITDA growth in FY24 followed by double-digit growth in FY25.