C&C has had a 30% working interest in the Cachicamo block since 2006. The Cachicamo block is within the Llanos Basin and 87,646 gross acres in size (26,294 net acres). In early 2008 the Corporation drilled three exploratory wells, two of which resulted in oil discoveries. C&C completed three successful appraisal wells during the fourth quarter of 2008 and the first quarter of 2009. Drilling resumed in February 2010 and to date, six additional wells have been drilled in the Cachicamo block. There are currently four wells on production with an additional five wells, approximately an incremental 2000 bopd (600 bopd net to C&C) awaiting tie-in. The Corporation expects these volumes to be on production late in the fourth quarter of 2010 on the Cachicamo block due to seasonal construction delays.
The two oil discoveries exploit the same play concept as on the Cravoviejo block. The first field, Ciriguelo, commenced production in September 2009 and the second, Hoatzin, started production in January 2010.
The Cachicamo block is in the early stages of exploration and development, with oil production averaging approximately 800bopd (240 bbls/d net) for the second quarter of 2010. Currently, there are additional drilling locations up-dip from existing accumulations that management expects to drill in 2010.
According to the Lonquist Reserve Report, proved and probable reserves as at December 31, 2009 on the Cachicamo block were 0.8 million bbls net to C&C.