Canacol Energy - Ramping up to 230mmscfd by end 2018

Canacol recently provided market guidance for 2018 with capex and production guidance broadly in line with market expectations. Capex guidance is set at US$80m, realised contractual gas sales at 114-129mmscfd and oil sales at an average 1,700bod. Primary objectives for 2018 include: 1) investments in drilling, facilities and flowlines to underpin production capacity in excess of 230mmscfd by 1 December 2018; 2) a four-well, gas-focused E&A programme; and 3) divestment of legacy conventional oil assets to complete the transition to a pure-play, gas-focused Colombian E&P. Consensus expects US$177m EBITDA in 2018 and 122mmscfd of realised gas sales.