Canacol eyes 2025 gas production in Bolivia

Canadian energy company Canacol plans to start natural gas production in Bolivia next year as it expands its South American footprint beyond Colombia, CEO Charle Gamba said on Friday. 

The company recently secured approval to reactivate the Tita Techi gas field in Bolivia's eastern Santa Cruz department, its fourth E&P contract in the country. 

"We expect to begin investing primarily within the Tita contract, which is an existing gas field that has been shut in since the year 2000," Gamba told investors in a quarterly earnings call. 

"We expect investment of up to US$12mn next year, aimed primarily at the workover of existing wells, the testing of those wells and the construction of some infrastructure in order to commence production and sales from those wells."

The forecast came as Canacol reported net income of US$10.3mn in the third quarter, up from a loss of US$0.5mn in the same period last year. 

The company said it was on track for capital spending of US$138mn in 2024 compared with realized capex of US$215mn last year. 

Some US$72mn has been earmarked for maintenance and development, US$67mn for exploration and US$11mn for administration, ESG and other costs. 

Canacol plans to drill 11 Colombian wells this year, including four in the fourth quarter: the Natilla 2, Kite1 and Pibe 1 exploration prospects and the Nispero 2 appraisal well. 

Canacol reported average natural gas sales of 160 million cubic feet a day in the third quarter, in line with its 2024 full-year guidance. 

Gamba said the company had over 20 trillion cubic feet of un-risked prospective resources on its Colombian acreage, all located close to existing transport and production infrastructure. 

"Our focus remains on de-risking our exploration portfolio, particularly in the Lower and Middle Magdalena Valley basins of Colombia," Gamba said. "This will help strengthen Canacol's position in Colombia's dynamic gas market.

"Additionally, our recent strategic entry into Bolivia opens up further opportunities to expand our regional presence, creating strong foundations for sustainable growth," he added.