According to The Wall Street Journal Canacol Energy in 2008 in conjunction with Emerald Energy discovered the Capella oil field in Colombia. It is the largest oil discovery in Colombia in over 25 years. The oil field itself is expected to have probable reserves of 2.2 billion barrels and prospective resources of 27.4 billion barrels of crude oil. Canacol currently owns 10% of the Capella oil field with China’s Sinochem International Corporation, who bought Emerald Energy in 2009, owning the remaining 90% of the Capella field.
In addition to this Canacol owns 1.6 million acres of land in areas surrounding the Capella oil field, which leads to a high probability of finding other crude oil rich fields in the surrounding area. As a result of their potential earnings, Canacol Energy’s stock prices have quintupled since September 2009.
I believe that Canacol Energy is a promising investment because their stock prices will most likely continue to go up for the time being as they continue to drill for oil on their 1.6 million acres of land. Canacol is a relatively small company, which is currently producing 3,000 barrels of crude oil. Canacol’s value will most likely continue to go up because of the possibility of it being acquired by a larger energy corporation in the future. As a result I think that Canacol Energy is definitely a company to watch over the next few years.
"Canacol Energy’s stock prices have quintupled since September 2009." It means that in a year stock prices have risen rapidly. Thus, in the ear future stock prices will continuously increase making Canacol a great investment. It is most likely that the company will continue to increase and rise in value. Just like Canacol just discovered the Capella in Colombia which gives great profit, it is likely that they will continue doing these type of discoveries that will strengthen their stocks, value, and more over economy. Therefore, Canacol is a thoughtful investment.
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