C&C Energia Ltd : C&C Energia Ltd. Provides Operational Update on Cachalote-1 Well, Andaquies Block, Colombia

JAN 18, 2012 - 06:25 ET

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2012) - C&C Energia Ltd. ("C&C" or the "Corporation") (TSX:CZE) reports that the Cachalote-1 well, on its Andaquies block, has been drilled to a measured total depth of 6,133 ft. (true vertical depth of 5,970 ft.) and the Corporation has recently completed running electric logs and collecting numerous sidewall cores. C&C and its partner Canacol Energy Ltd. will run 7 inch production casing in the well to total depth, complete and production test the Neme Formation within the interval 5,640 ft. to 5,766 ft. Completion and testing results are expected within the next 2 to 3 weeks.

The Cachalote-1 well is the first exploration well on the Andaquies block (114,875 acres (gross)), located in the northern Putumayo Basin in Colombia. C&C has a 64% working interest and is the operator

ABOUT C&C ENERGIA LTD.

The Corporation, through its subsidiary Grupo C&C Energia (Barbados) Ltd., is engaged in the exploration for, the development and production of, oil resources in Colombia. Its strategy is to develop producing oil assets by appraising and developing existing discoveries and exploring in areas assessed by management to be of low to moderate risk. With a total of eight blocks (seven operated) and approximately 530,000 net acres in Colombia, the Corporation's management expects that C&C Energia has considerable upside for future production and reserve growth.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains forward-looking information within the meaning of applicable Canadian securities laws that involves known and unknown risks and uncertainties. Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", "will", "plans" or similar words suggesting future outcomes. The Corporation cautions readers and prospective investors in the Corporation's securities to not place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by C&C.

Forward-looking information in this press release includes, but is not limited to, information concerning the Corporation's plans with respect to the drilling, completion and testing of its Cochalote-1 well. These forward-looking statements are subject to assumptions regarding the Corporation's operations and the operating environment in Colombia. The Corporation's drilling and seismic plans are subject to change if circumstances change or if management of the Corporation determines that other business plans are more appropriate.

Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by C&C including, but not limited to, general risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with the negotiating with the ANH or with other third parties in countries other than Canada and the risk associated with international activity. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement. The forward-looking information included herein is made as of the date hereof and C&C assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.