Why Shares of Canacol Energy Ltd. Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Canacol Energy Ltd. jumped 10% today after announcing drilling results.
So what: The Leono 1 explorations well in the Llanos Basin in Columbia showed 133 feet of net oil pay from 4 different reservoirs. That's double what the company discovered at the Labrador discovery last year.
Now what: Canacol is already preparing to conduct production testing once it receives regulatory approval. Once that's completed, it will drill four more appraisal wells at Leono, which I would expect to be drilled early next year. This is very positive news for Canacol and with an 80% working interest in the oil field we should begin seeing a significant impact on the company's income statement next year.
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The article Why Shares of Canacol Energy Ltd. Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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