Canacol Energy Ltd. (TSE:CNE) (PINK:CAAEF) stock price has recently established a trading range, but the company also published impressive financial results for the fiscal Q4, which give their stock the potential to move up and fill the price gap.
The company said yesterday their quarterly revenues have increased six times compared to the same quarter a year ago and totaled $47.9 million. Canacol also reaffirmed the production guidance for 2011, stating their average for the year will be 10.5-11.5 thousand barrels of oil per day.
CNE stock price entered consolidation after the stock bounced the 52-week low of 55 cents on a strong preceding downtrend. Technically the stock is in a vague price channel of 65 to 70 cents.
The extraordinary price behavior over the past week can be related to at least one other news announcement. On Tuesday, the company provided an update on their drilling program at Rancho Hermoso Field in the Llanos Basin of Colombia. Apparently, the drilling and casing of the first well was completed. The company plans to drill additional three wells by the end of 2011.
The well that’s been completed is expected to enter production within the next 2 weeks. On Monday, Sep 26, Canacol said their proved reserves were 4.5 million barrels of oil for the fiscal year ended June 30, which was a 73% increase from a year before. The company also reminded they have $115 million in cash and are funded for 2012.
