C&C Energia continues to benefit from high oil prices generating operating netbacks of $63.06 per barrel and funds flow from operations for the eleven months ended November 30, 2011 of approximately $115 million.

Current production from four wells (Zopilote-1, 2, 3 and 5) in the Zopilote field is approximately 3,400 bopd. Zopilote-4 will be tied in and placed on production in the coming weeks.

Working capital as at November 30, 2011 was approximately $72.7 million, including cash of $84.3 million.

The Corporation has completed the drilling of two additional wells in the Llanos Basin since releasing its third quarter results in November 2011. Production averaged approximately 10,550 bopd for the month of December 2011.

On the Cravoviejo Block (100% working interest), C&C recently drilled two wells, Zopilote-3 and Zopilote-4, to appraise the size of the Zopilote field. Zopilote-3 discovered 25 feet of net pay in the C-5 Formation and 38 feet of net pay in the Gacheta Formation. Both zones have been completed and the well is currently producing approximately 660 bopd of 32 degrees API oil from the C-5 reservoir and 315 bopd of 17 degrees API oil from the Gacheta reservoir.

C&C Energia's latest appraisal well, Zopilote-4, was drilled and cased prior to year-end to a total depth of 8,904 feet. The well encountered 24 feet of net pay in the C-5 and 41 feet of pay in the Gacheta Formation and is currently being completed and tested in the Gacheta Formation over the interval of 8,710 to 8,734 feet.

Current production from four wells (Zopilote-1, 2, 3 and 5) in the Zopilote field is approximately 3,400 bopd. Zopilote-4 will be tied in and placed on production in the coming weeks. All of the C-5 producers are on natural flow, including the discovery well (Zopilote-1) which was placed on production in April, 2011. The Gacheta producers are on artificial lift.

On the Andaquies Block, the Corporation acquired an additional 10% working interest from a minority partner to increase its working interest to 100%. C&C Energia's working interest will be reduced to 64%, subject to Canacol Energy Ltd. earning under the previously announced farm-in agreement. The Corporation's first exploration well in the block, Cachalote-1, was spud on December 21, 2011 and is currently drilling. Drilling results are expected by mid to late January 2012.

Over the next six months the Corporation intends to drill at least eight exploratory wells in Colombia. These wells are located on the following blocks: Cravoviejo - two wells; Cachicamo - three wells; Llanos-19 - one well; Pajaro Pinto - one well; and, Andaquies - one well.

C&C Energia is also pleased to announce that it has completed negotiations on a $200 million credit facility (the "Facility") with a syndicate of banks led by BNP Paribas and including ScotiaBank and Societe Generale (Canada Branch). This is a reserve base facility with a current borrowing base set at $35 million. The Facility replaces the existing $100 million credit facility with a borrowing base of $22 million.

Richard Walls, the Corporation's President and Chief Executive Officer commented: "We are pleased with the successful negotiation of the credit facility. The facility, together with our current cash position and future cash flows provides the Corporation with the flexibility to fund any future development programs and allows us to be proactive in seeking out various new investment opportunities."

Tags: C&C Energia Ltd