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What: Shares of Canacol Energy Ltd. (TSX:CNE) 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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