CALGARY, ALBERTA--(Marketwire - March 30, 2012) - C&C Energia Ltd. ("C&C" or the "Corporation") (TSX:CZE.TO - News) reports that it has completed the drilling and testing of the Tardigrado-1 well in the Andaquies Block located in Colombia and has subsequently abandoned the well. The Tardigrado-1 well encountered 60 feet of prospective Caballos sandstone with average porosity of 19.4%. The Caballos reservoir was perforated and tested in the intervals from 4,413 to 4,430 feet and between 4,442 to 4,445 feet. Swab tests from both intervals produced fresh water with slight traces of oil.
Well data suggests that the oil shows from the Caballos reservoir could represent a residual oil accumulation in a structure that was flushed by fresh water or that the well was drilled on a down-dip location and C&C tested a possible transition zone. C&C and its partner will determine the future exploration plans for this block, after evaluation of all the drilling and seismic data. The Tardigrado-1 well is located in the northern portion of the Andaquies block (114,875 gross acres) located in the northern Putumayo Basin in Colombia. C&C has a 64% working interest and is the operator.
ABOUT C&C ENERGIA LTD.
The Corporation, through its subsidiary Grupo C&C Energia (Barbados) Ltd., is engaged in the exploration for, the development and production of, oil resources in Colombia. Its strategy is to develop producing oil assets by appraising and developing existing discoveries and exploring in areas assessed by management to be of low to moderate risk. With a total of eight blocks (seven operated) and approximately 530,000 net acres in Colombia, the Corporation's management expects that C&C has considerable upside for future production and reserve growth.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains forward-looking information within the meaning of applicable Canadian securities laws that involves known and unknown risks and uncertainties. Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", "will", "plans" or similar words suggesting future outcomes. The Corporation cautions readers and prospective investors in the Corporation's securities to not place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by C&C.
Forward-looking information in this press release includes, but is not limited to, information concerning the Corporation's plans with respect to the planned Tardigrado-1 well and management's views regarding the prospects of the Caballos reservoir. These forward-looking statements are subject to assumptions regarding the Corporation's operations and the operating environment in Colombia.
Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by C&C including, but not limited to, general risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with the negotiating with the ANH or with other third parties in countries other than Canada and the risk associated with international activity. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement. The forward-looking information included herein is made as of the date hereof and C&C assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.