Canacol Energy Sets Capital Budget for 2024, Expects Lower Gas Sales

Colombia-based gas exploration and production company, Canacol Energy, has announced its capital budget for the upcoming year. Despite aiming to maintain investments, the company forecasts a decrease in average contractual natural gas sales compared to 2023.

Gas Sales Volumes

Canacol Energy expects average realized sales volumes for this year to range from 160 million to 177 million cubic feet per day (MMcfpd), slightly lower than the estimated 178 million in 2023. Notably, firm take-or-pay contracts for 2024 are expected to average 124MMcfpd after accounting for contractual downtime.

The average wellhead sales price, considering transportation costs, is approximately $6.04 per thousand cubic feet (Mcf) for firm take-or-pay contracts. Additionally, the company anticipates an average wellhead sales price of $6.59/Mcf.

It is worth mentioning that potential interruptible sales include possible transactions with the Tesorito gas-fired power plant, operated by Celsia, in which Canacol Energy holds a 10% stake.

Capital Program for 2024

While Canacol Energy is committed to reducing debt in the long term, the company has decided to maintain substantial investments in key producing blocks located in the Lower Magdalena Valley Basin. This decision is based on the current favorable gas market dynamics.

For the upcoming year, Canacol Energy has set a capital budget ranging from $138 million to $151 million. This is lower than the estimated $205 million spent last year.

For more information, please contact Canacol Energy.