Highlights 

  • An independent audit by DeGolyer and MacNaughton confirms Canacol’s proved gas reserves with minimal variance. 
  • Reserve differences between BGEC and D&M were limited to 2.2%–7.7% across categories. 
  • Total proved reserves audited at 232,389 million cubic feet gross and 225,417 million cubic feet net. 
  • Future revenue estimates were audited with variations from BGEC primarily due to methodology and assumptions. 
  • Audit supports the reliability of Canacol’s reserve reporting across key Colombian gas assets. 

Canacol Energy Ltd. (TSX:CNE) has released the findings of an independent audit conducted by DeGolyer and MacNaughton covering the Corporation’s proved developed producing, proved developed, and total proved gas reserves across its Esperanza, VIM-5, and VIM-21 blocks in Colombia. 

BGEC’s estimates showed total proved reserves of 251,700 million cubic feet (gross) and 244,149 million cubic feet (net). D&M’s independent assessment determined total proved reserves of 232,389 million cubic feet (gross) and 225,417 million cubic feet (net). Despite the differences between the two models, D&M concluded that Canacol’s reserve estimates fall within acceptable industry variance and do not materially differ on an aggregate basis. 

Comparison Between BGEC and D&M Reserve Models 

The audit revealed moderate variations between BGEC and D&M’s evaluations across reserve categories. The most notable differences occurred in the proved developed non-producing and total proved segments, where D&M’s estimates were slightly lower. 

  • Proved Developed Producing: 2.2% lower in D&M’s assessment 
  • Proved Developed: 7.6% lower 
  • Total Proved: 7.7% lower 

These variances stem from methodological distinctions, including reservoir interpretation and economic assumptions. Nevertheless, D&M stated that the differences are not material when viewed in aggregate and reflect normal technical and economic evaluation ranges. Both assessments confirm meaningful proved reserves that support Canacol’s ongoing production and commercial strategy in Colombia. 

Future Revenue Estimates Reflect Methodological Differences 

In addition to reserve volumes, both BGEC and D&M estimated the future revenue attributable to Canacol’s interest under defined economic assumptions. BGEC’s before-tax NPV-10 for total proved reserves was 1,098,261 (103 USD), while D&M’s estimate was 979,140 (103 USD). After-tax NPV-10 followed a similar pattern. 

Revenue variations were influenced by different pricing assumptions, cost forecasts, and risk-adjustment methodologies. Despite these differences, D&M’s audit supports the credibility of Canacol’s overall reserve and valuation framework. 

Canacol continues to focus on natural gas exploration and production across its Colombianassets. 

Conclusion 

The independent audit by DeGolyer and MacNaughton reinforces the reliability of Canacol’s reserve reporting and confirms the scale of its proved gas assets across key Colombian blocks. While some variations were identified, the overall findings affirm that Canacol’s estimates fall within acceptable industry ranges. These results provide continued confidence in the Corporation’s long-term value potential and its position within Colombia’s natural gas market. 

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