Canacol Energy Ltd. provides an update of its development drilling program at its operated Rancho Hermoso Field located in the Llanos Basin of Colombia, which is operated under a contract with Ecopetrol, the state oil company of Colombia. The Corporation has completed flow testing of the Guadalupe reservoir in the recently drilled Rancho Hermoso 6 ("RH 6") well, the first of five development wells planned for 2010. The RH 6 well encountered 115 feet ("ft") of net oil pay within 5 different reservoir intervals, which include, from top to bottom, the C7, Mirador, Los Cuervos - Barco, Guadalupe, and Ubaque. On August 16, 2010, the Corporation announced that it had tested a gross rate of 3,340 barrels of oil per day ("bopd") from the Ubaque reservoir, the first of 3 reservoirs to be tested in the well.

Charle Gamba, President and CEO of Canacol, stated, "We are very pleased with the flow test results of the Guadalupe reservoir in the RH 6 well. Combined with the flow rate tested from the underlying Ubaque reservoir last week, the RH 6 well has demonstrated a combined gross flow rate of 6,642 bopd, with one remaining zone yet to be tested. The 5 well drilling program currently underway at the Rancho Hermoso field, and the excellent results to date from RH 6, will allow the Corporation to reach its 7,000 bopd net production exit target by year end."

Tags: Canacol Energy Inc.