C&C Energia Ltd. is an independent oil and gas company engaged in the exploration for, and the acquisition, development and production of oil resources in Colombia. The Corporation holds interests in nine blocks in Colombia with a total acreage position of approximately 766,500 acres (587,000 net acres) and operates seven of these blocks. Production has increased from approximately 165 barrels of oil per day (“bopd”) in April 2007 to approximately 7,000 bopd in August 2010. This growth is a result of the Corporation’s strategy to capture highly prospective low to moderate risk acreage, taking high working interest positions with a focus on operating the blocks. All of C&C’s production growth to date is the result of drilling success using this strategy.
C&C Energia Ltd., formerly C&C Energy Canada Ltd, was formed in February 2005 as a private company to focus on the Colombian oil industry due to the significantly improved business climate for oil companies in Colombia. Management of the Corporation considered Colombia to be a country with under-developed, highly prospective, proven hydrocarbon basins. This improved business climate was the result of changes implemented in 2004 to the regulatory framework and the royalty structure of the oil industry in Colombia, together with a significantly improved security situation in Colombia. The Colombian oil fiscal regime is now one of the most attractive in the world for companies to invest in. The Corporation initially obtained financing from primarily Canadian investors, recruited a management team which had established a track record of successfully exploring and developing hydrocarbons in Colombia and began assembling a portfolio of low to medium risk exploration plays in Colombia. In March 2007, Denham Commodity Partners Fund IV LP acquired a 51.5% interest in C&C Energy (Barbados) Ltd, the Corporation’s then wholly-owned subsidiary. The injection of funds allowed the Corporation to expand its acreage position and move forward with its drilling programs leading to the commencement of production in 2007. C&C completed an Initial Public Offering (IPO) of securities on May 25, 2010 and trades under the symbol “CZE” on the Toronto Stock Exchange.
